Gross Margin % is calculated as gross profit divided by its revenue. Poshmark's Gross Profit for the
three
months ended in Sep. 2022 was $73.5 Mil. Poshmark's Revenue for the
three
months ended in Sep. 2022 was $88.4 Mil. Therefore, Poshmark's Gross Margin % for the quarter that ended in Sep. 2022 was 83.13%.
The historical rank and industry rank for Poshmark's Gross Margin % or its related term are showing as below:
POSH'
s Gross Margin % Range Over the Past 10 Years
Min: 83.28 Med: 83.73 Max: 84.6
Current: 83.28
During the past 4 years, the highestGross Margin % of Poshmark was 84.60%. The lowest was 83.28%. And the median was 83.73%.
POSH's Gross Margin % is not ranked
in the Retail - Cyclical industry.
Industry Median: 36.46
vs POSH: 83.28
Poshmark had a gross margin of 83.13% for the quarter that ended in Sep. 2022 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Poshmark was 0.00% per year.
Poshmark Gross Margin % Historical Data
The historical data trend for Poshmark'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.
Competitive Comparison of Poshmark's Gross Margin %
For the Internet Retail subindustry, Poshmark'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.
Poshmark's Gross Margin % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Poshmark's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Poshmark'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.
Poshmark (NAS:POSH) 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
Poshmark had a gross margin of 83.13% for the quarter that ended in Sep. 2022 => 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.
Poshmark Gross Margin % Related Terms
Thank you for viewing the detailed overview of Poshmark's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Poshmark is one of the largest players in a quickly growing e-commerce resale space, connecting more than 30 million active users on a platform that sells men's and women's apparel, accessories, shoes, and more recently consumer electronics and pet products. The marketplace operates in four countries--the U.S., Canada, Australia, and India--with a capital-light, peer-to-peer model that dovetails nicely with prevailing trends toward social commerce, apparel resale, and an ongoing pivot toward the e-commerce channel. With $1.8 billion in 2021 gross merchandise volume, or GMV, we estimate that the firm captured about 13%-14% of the domestic online resale market, with rolling lockdowns and tangled supply chains providing a meaningful impetus for channel trial during 2020 and 2021.
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