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adidas AG (XTER:ADS) Gross Margin % : 44.61% (As of Dec. 2023)


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What is adidas AG Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. adidas AG's Gross Profit for the three months ended in Dec. 2023 was €2,146 Mil. adidas AG's Revenue for the three months ended in Dec. 2023 was €4,811 Mil. Therefore, adidas AG's Gross Margin % for the quarter that ended in Dec. 2023 was 44.61%.

Warning Sign:

adidas AG gross margin has been in long-term decline. The average rate of decline per year is -2%.


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

XTER:ADS' s Gross Margin % Range Over the Past 10 Years
Min: 47.28   Med: 49.63   Max: 52
Current: 47.52


During the past 13 years, the highest Gross Margin % of adidas AG was 52.00%. The lowest was 47.28%. And the median was 49.63%.

XTER:ADS's Gross Margin % is ranked better than
78.76% of 1031 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 25.22 vs XTER:ADS: 47.52

adidas AG had a gross margin of 44.61% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for adidas AG was -2.00% per year.


adidas AG Gross Margin % Historical Data

The historical data trend for adidas AG'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.

adidas AG Gross Margin % Chart

adidas AG Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 52.00 50.02 50.70 47.28 47.52

adidas AG Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 39.10 44.80 50.87 49.26 44.61

Competitive Comparison of adidas AG's Gross Margin %

For the Footwear & Accessories subindustry, adidas AG'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.


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

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

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



adidas AG Gross Margin % Calculation

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

adidas AG's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=10183 / 21427
=(Revenue - Cost of Goods Sold) / Revenue
=(21427 - 11244) / 21427
=47.52 %

adidas AG's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=2146 / 4811
=(Revenue - Cost of Goods Sold) / Revenue
=(4811 - 2665) / 4811
=44.61 %

* 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.


adidas AG  (XTER:ADS) 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

adidas AG had a gross margin of 44.61% for the quarter that ended in Dec. 2023 => 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.


adidas AG Gross Margin % Related Terms

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


adidas AG (XTER:ADS) Business Description

Address
Adi-Dassler-Strasse 1, Herzogenaurach, BY, DEU, 91074
Adidas designs, develops, produces, and markets athletic and leisure apparel, footwear, accessories, and sports equipment. Under its eponymous brand, it produces apparel for competitive athletics, casual activewear, and casual fashion. Adidas sells its products in more than 160 countries through nearly 2,000 owned retail stores, 15,000 mono-branded franchise stores, 150,000 wholesale doors, and owned e-commerce that is available in 65 countries. The company was founded in 1949 in Germany.
Executives
Brian Grevy Board of Directors

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