Card Factory (LSE:CARD) Gross Margin % : 35.71% (As of Jan. 2024)

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What is Card Factory Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Card Factory's Gross Profit for the six months ended in Jan. 2024 was £103.6 Mil. Card Factory's Revenue for the six months ended in Jan. 2024 was £290.1 Mil. Therefore, Card Factory's Gross Margin % for the quarter that ended in Jan. 2024 was 35.71%.

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

LSE:CARD' s Gross Margin % Range Over the Past 10 Years
Min: 27.84 Med: 32.57 Max: 38.94
Current: 36.19

During the past 13 years, the highest Gross Margin % of Card Factory was 38.94%. The lowest was 27.84%. And the median was 32.57%.

LSE:CARD's Gross Margin % is ranked worse than
50.68% of 1095 companies
in the Retail - Cyclical industry
Industry Median: 36.46 vs LSE:CARD: 36.19

Card Factory had a gross margin of 35.71% for the quarter that ended in Jan. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Card Factory was -1.00% per year.

Card Factory Gross Margin % Historical Data

The historical data trend for Card Factory'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.

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Card Factory Gross Margin % Chart

Card Factory Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Gross Margin %

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35.92

27.85

31.97

34.68

36.19

Card Factory Semi-Annual Data
	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23	Jan24
Gross Margin %	Get a 7-Day Free Trial															33.62	33.23	35.76	36.82	35.71

Competitive Comparison of Card Factory's Gross Margin %

For the Specialty Retail subindustry, Card Factory'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.

Card Factory's Gross Margin % Distribution in the Retail - Cyclical Industry

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

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

Card Factory Gross Margin % Calculation

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

Card Factory's Gross Margin for the fiscal year that ended in Jan. 2024 is calculated as

Gross Margin % (A: Jan. 2024 )	=	Gross Profit (A: Jan. 2024 )	/	Revenue (A: Jan. 2024 )
	=	184.9	/	510.9
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(510.9 - 326)	/	510.9
	=	36.19 %

Card Factory'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 )
	=	103.6	/	290.1
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(290.1 - 186.5)	/	290.1
	=	35.71 %

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.

Card Factory (LSE:CARD) 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

Card Factory had a gross margin of 35.71% 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.

Card Factory Gross Margin % Related Terms

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Card Factory (LSE:CARD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Card Factory PLC (LSE:CARD) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

CARDl:UK

Address

Century House, Brunel Road, 41 Industrial Estate, Wakefield, West Yorkshire, GBR, WF2 0XG

Website

https://www.cardfactory.co.uk

Card Factory PLC is a British retailer of greeting cards. Its products are offered via stores present in the United Kingdom, as well as online through websites: Card Factory and Getting Personal. The company's strategy is to provide high-quality cards at affordable prices. Less than 50% of sales come from gift dressings, small gifts, and party items. The business model is vertically integrated. It has an in-house design team, a printing facility, and a central warehousing facility.