Gross Margin % is calculated as gross profit divided by its revenue. Macy's's Gross Profit for the
three
months ended in Jul. 2024 was $2,158 Mil. Macy's's Revenue for the
three
months ended in Jul. 2024 was $5,096 Mil. Therefore, Macy's's Gross Margin % for the quarter that ended in Jul. 2024 was 42.35%.
The historical rank and industry rank for Macy's's Gross Margin % or its related term are showing as below:
M'
s Gross Margin % Range Over the Past 10 Years
Min: 32.11 Med: 40.43 Max: 41.12
Current: 41.04
During the past 13 years, the highestGross Margin % of Macy's was 41.12%. The lowest was 32.11%. And the median was 40.43%.
M's Gross Margin % is ranked better than 57.82% of 1100
companies
in the Retail - Cyclical industry
Industry Median: 36.9
vs M: 41.04
Macy's had a gross margin of 42.35% for the quarter that ended in Jul. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Macy's was 0.60% per year.
Macy's Gross Margin % Historical Data
The historical data trend for Macy's'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.
For the Department Stores subindustry, Macy's'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.
Macy's's Gross Margin % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Macy's's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Macy's'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.
Macy's (NYSE:M) 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
Macy's had a gross margin of 42.35% for the quarter that ended in Jul. 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.
Macy's Gross Margin % Related Terms
Thank you for viewing the detailed overview of Macy's's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Founded in 1858 and based in New York City, Macy's operates about 500 stores under the Macy's nameplate, nearly 60 stores under the Bloomingdale's (full-price and outlet) and Bloomie's nameplates, and 157 freestanding Bluemercury specialty beauty stores. Macy's also operates e-commerce sites and licenses Bloomingdale's stores in the United Arab Emirates and Kuwait. Women's apparel, accessories, shoes, cosmetics, and fragrances composed 62% of Macy's 2023 sales.
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