LPP (WAR:LPP) Gross Margin % : 52.47% (As of Jan. 2024)

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What is LPP Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. LPP's Gross Profit for the three months ended in Jan. 2024 was zł2,540 Mil. LPP's Revenue for the three months ended in Jan. 2024 was zł4,841 Mil. Therefore, LPP's Gross Margin % for the quarter that ended in Jan. 2024 was 52.47%.

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

WAR:LPP' s Gross Margin % Range Over the Past 10 Years
Min: 48.74 Med: 53.52 Max: 58.55
Current: 51.51

During the past 13 years, the highest Gross Margin % of LPP was 58.55%. The lowest was 48.74%. And the median was 53.52%.

WAR:LPP's Gross Margin % is ranked better than
81.78% of 1032 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 25.33 vs WAR:LPP: 51.51

LPP had a gross margin of 52.47% for the quarter that ended in Jan. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for LPP was -0.40% per year.

LPP Gross Margin % Historical Data

The historical data trend for LPP'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.

LPP Gross Margin % Chart

LPP Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Jan20

Jan21

Jan22

Jan23

Gross Margin %

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54.70

53.57

52.04

57.24

50.31

LPP Quarterly Data
	Mar19	Jun19	Sep19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Gross Margin %	Get a 7-Day Free Trial															49.58	49.63	47.95	55.77	52.47

Competitive Comparison of LPP's Gross Margin %

For the Apparel Manufacturing subindustry, LPP'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.

LPP's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, LPP's Gross Margin % distribution charts can be found below:

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

LPP Gross Margin % Calculation

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

LPP's Gross Margin for the fiscal year that ended in Jan. 2023 is calculated as

Gross Margin % (A: Jan. 2023 )	=	Gross Profit (A: Jan. 2023 )	/	Revenue (A: Jan. 2023 )
	=	8013.1	/	15926.5
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(15926.5 - 7913.4)	/	15926.5
	=	50.31 %

LPP's Gross Margin for the quarter that ended in Jan. 2024 is calculated as

Gross Margin % (Q: Jan. 2024 )	=	Gross Profit (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	2539.8	/	4840.9
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4840.9 - 2301.1)	/	4840.9
	=	52.47 %

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.

LPP (WAR:LPP) 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

LPP had a gross margin of 52.47% for the quarter that ended in Jan. 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.

LPP Gross Margin % Related Terms

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LPP (WAR:LPP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » LPP SA (WAR:LPP) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

LPPSY:USA 0LVL:UK

Address

ul. Lakowa 39/44, Gdansk, POL, 80-769

Website

http://www.lppsa.com

LPP SA makes and sells clothing, footwear, bags, and accessories in Central and Eastern Europe. LPP has nearly 1,500 company-branded retail stores, which serve as the company's primary sales channel. Brands include Reserved, Cropp, House, Mohito, and Sinsay. Reserved stores account for roughly half of the company's sales volume. Geographically, most sales are in Poland, and Poland and Russia account for more than 80% of total sales. LPP purchases most of its materials in Asia, and the company's manufacturers are primarily located in China.

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