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Lawson (TSE:2651) Gross Margin % : 53.53% (As of Feb. 2024)


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What is Lawson Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Lawson's Gross Profit for the three months ended in Feb. 2024 was 円146,580 Mil. Lawson's Revenue for the three months ended in Feb. 2024 was 円273,821 Mil. Therefore, Lawson's Gross Margin % for the quarter that ended in Feb. 2024 was 53.53%.

Warning Sign:

Lawson Inc gross margin has been in long-term decline. The average rate of decline per year is -7.5%.


The historical rank and industry rank for Lawson's Gross Margin % or its related term are showing as below:

TSE:2651' s Gross Margin % Range Over the Past 10 Years
Min: 51.77   Med: 71.78   Max: 74.27
Current: 53.34


During the past 13 years, the highest Gross Margin % of Lawson was 74.27%. The lowest was 51.77%. And the median was 71.78%.

TSE:2651's Gross Margin % is ranked better than
93.89% of 311 companies
in the Retail - Defensive industry
Industry Median: 22.74 vs TSE:2651: 53.34

Lawson had a gross margin of 53.53% for the quarter that ended in Feb. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Lawson was -7.50% per year.


Lawson Gross Margin % Historical Data

The historical data trend for Lawson'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.

Lawson Gross Margin % Chart

Lawson Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 71.82 71.71 51.77 52.71 53.34

Lawson Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 52.58 53.21 53.58 53.01 53.53

Competitive Comparison of Lawson's Gross Margin %

For the Discount Stores subindustry, Lawson'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.


Lawson's Gross Margin % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Lawson's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Lawson's Gross Margin % falls into.



Lawson Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Lawson's Gross Margin for the fiscal year that ended in Feb. 2024 is calculated as

Gross Margin % (A: Feb. 2024 )=Gross Profit (A: Feb. 2024 ) / Revenue (A: Feb. 2024 )
=580315 / 1087964
=(Revenue - Cost of Goods Sold) / Revenue
=(1087964 - 507649) / 1087964
=53.34 %

Lawson's Gross Margin for the quarter that ended in Feb. 2024 is calculated as


Gross Margin % (Q: Feb. 2024 )=Gross Profit (Q: Feb. 2024 ) / Revenue (Q: Feb. 2024 )
=146580 / 273821
=(Revenue - Cost of Goods Sold) / Revenue
=(273821 - 127241) / 273821
=53.53 %

* 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.


Lawson  (TSE:2651) 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

Lawson had a gross margin of 53.53% for the quarter that ended in Feb. 2024 => Durable competitive advantage


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.


Lawson Gross Margin % Related Terms

Thank you for viewing the detailed overview of Lawson's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Lawson (TSE:2651) Business Description

Traded in Other Exchanges
Address
East Tower, Gate City Osaki, 11-2, Osaki 1-chome, Shinagawa-ku, Tokyo, JPN, 141-8643
Lawson is the third-largest convenience-store operator in Japan with more than 14,500 stores domestically, and more than 3,400 stores overseas with more than 90% of stores located in China. Convenience-store operations inclusive of franchise fees represent about 55% of group operating revenue and 75% of operating profits. Other activities include Seijo Ishii (an upscale food-store chain with 163 stores in Japan as of November 2020) and entertainment businesses comprising cinema operations with 43 theaters, the HMV music store chain, and Lawson HMV ticketing services.

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