Gross Margin % is calculated as gross profit divided by its revenue. Sprouts Farmers Market's Gross Profit for the
three
months ended in Dec. 2023 was $620 Mil. Sprouts Farmers Market's Revenue for the
three
months ended in Dec. 2023 was $1,699 Mil. Therefore, Sprouts Farmers Market's Gross Margin % for the quarter that ended in Dec. 2023 was 36.52%.
The historical rank and industry rank for Sprouts Farmers Market's Gross Margin % or its related term are showing as below:
SFM'
s Gross Margin % Range Over the Past 10 Years
Min: 29.27 Med: 33.67 Max: 36.88
Current: 36.88
During the past 13 years, the highestGross Margin % of Sprouts Farmers Market was 36.88%. The lowest was 29.27%. And the median was 33.67%.
SFM's Gross Margin % is ranked better than 83.28% of 311
companies
in the Retail - Defensive industry
Industry Median: 22.72
vs SFM: 36.88
Sprouts Farmers Market had a gross margin of 36.52% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Sprouts Farmers Market was 2.10% per year.
Sprouts Farmers Market Gross Margin % Historical Data
The historical data trend for Sprouts Farmers Market'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.
* Premium members only.
Sprouts Farmers Market Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Gross Margin %
33.63
36.78
36.22
36.67
36.88
Sprouts Farmers Market Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Gross Margin %
36.33
37.50
36.99
36.51
36.52
Competitive Comparison
For the Grocery Stores subindustry, Sprouts Farmers Market'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.
Sprouts Farmers Market Gross Margin % Distribution
For the Retail - Defensive industry and Consumer Defensive sector, Sprouts Farmers Market's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sprouts Farmers Market'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.
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
Sprouts Farmers Market had a gross margin of 36.52% for the quarter that ended in Dec. 2023 => 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.
Sprouts Farmers Market Gross Margin % Related Terms
Thank you for viewing the detailed overview of Sprouts Farmers Market's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sprouts Farmers Market (Sprouts Farmers Market) Business Description
Sprouts Farmers Market is an American specialty grocer offering an assortment highlighting fresh and naturally derived products. Its offerings are especially focused on produce, which constituted around 20% of sales in fiscal 2022. Founded in 2002, the chain is most heavily concentrated in California, which accounted for over one third of its 386 stores as of the end of fiscal 2022. All of the company's operations are in the United States, with its stores largely located in the southern half of the country. Private-label products accounted for nearly 20% of sales in fiscal 2022.
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