Foot Locker Inc gross margin has been in long-term decline. The average rate of decline per year is -1.4%.
The historical rank and industry rank for Foot Locker's Gross Margin % or its related term are showing as below:
FL'
s Gross Margin % Range Over the Past 10 Years
Min: 27.83 Med: 31.93 Max: 34.46
Current: 27.83
During the past 13 years, the highestGross Margin % of Foot Locker was 34.46%. The lowest was 27.83%. And the median was 31.93%.
FL's Gross Margin % is ranked worse than 66.24% of 1093
companies
in the Retail - Cyclical industry
Industry Median: 36.65
vs FL: 27.83
Foot Locker had a gross margin of 26.76% for the quarter that ended in Jan. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Foot Locker was -1.40% per year.
Foot Locker Gross Margin % Historical Data
The historical data trend for Foot Locker's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Foot Locker's Gross Margin %
For the Apparel Retail subindustry, Foot Locker's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Foot Locker's Gross Margin % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Foot Locker's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Foot Locker's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Foot Locker (NYSE:FL) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Foot Locker had a gross margin of 26.76% for the quarter that ended in Jan. 2024 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Foot Locker Gross Margin % Related Terms
Thank you for viewing the detailed overview of Foot Locker's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Foot Locker Inc operates thousands of retail stores throughout the United States, Canada, Europe, Australia, and New Zealand. It also has one franchisee in the Middle East and one in South Korea, each of which operates multiple stores in those regions. The company mainly sells athletically inspired shoes and apparel. Foot Locker's merchandise comes from only a few suppliers, with Nike providing the majority. Store names include Foot Locker, Champs, and Runners Point. The company also has an e-commerce business selling through Footlocker.com, Eastbay, and Final-Score.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FL has been successfully added to your 