Gross Margin % is calculated as gross profit divided by its revenue. Shutterfly's Gross Profit for the
three
months ended in Jun. 2019 was $233 Mil. Shutterfly's Revenue for the
three
months ended in Jun. 2019 was $473 Mil. Therefore, Shutterfly's Gross Margin % for the quarter that ended in Jun. 2019 was 49.20%.
The historical rank and industry rank for Shutterfly's Gross Margin % or its related term are showing as below:
SFLY's Gross Margin % is not ranked *
in the Personal Services industry.
Industry Median: 44.84 * Ranked among companies with meaningful Gross Margin % only.
Shutterfly had a gross margin of 49.20% for the quarter that ended in Jun. 2019 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Shutterfly was 0.00% per year.
Shutterfly Gross Margin % Historical Data
The historical data trend for Shutterfly'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 Shutterfly's Gross Margin %
For the Personal Services subindustry, Shutterfly'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.
Shutterfly's Gross Margin % Distribution in the Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, Shutterfly's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shutterfly'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.
Shutterfly (NAS:SFLY) 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
Shutterfly had a gross margin of 49.20% for the quarter that ended in Jun. 2019 => 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.
Shutterfly Gross Margin % Related Terms
Thank you for viewing the detailed overview of Shutterfly's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Shutterfly Inc. is a personal services company that primarily manufactures and retails photo-based products and services for customers in the United States through its portfolio of brands. The company segments its activities into Consumer, Enterprise, and Corporate units. Shutterfly derives the vast majority of its revenue from its Consumer division, which produces and sells professionally bound photo books, greeting and stationary cards, personalized calendars, and prints. These products are all manufactured in the company's facilities located in the United States. Shutterfly also retails photo-based merchandise such as mugs, candles, pillows, and blankets that are manufactured by third-party firms. Substantially all of the company's sales are from the United States.
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