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Sears Hometown and Outlet Stores (Sears Hometown and Outlet Stores) Gross Margin % : 18.81% (As of Jul. 2019)


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What is Sears Hometown and Outlet Stores Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Sears Hometown and Outlet Stores's Gross Profit for the three months ended in Jul. 2019 was $32 Mil. Sears Hometown and Outlet Stores's Revenue for the three months ended in Jul. 2019 was $169 Mil. Therefore, Sears Hometown and Outlet Stores's Gross Margin % for the quarter that ended in Jul. 2019 was 18.81%.


The historical rank and industry rank for Sears Hometown and Outlet Stores's Gross Margin % or its related term are showing as below:


SHOS's Gross Margin % is not ranked *
in the Retail - Cyclical industry.
Industry Median: 36.61
* Ranked among companies with meaningful Gross Margin % only.

Sears Hometown and Outlet Stores had a gross margin of 18.81% for the quarter that ended in Jul. 2019 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Sears Hometown and Outlet Stores was 0.00% per year.


Sears Hometown and Outlet Stores Gross Margin % Historical Data

The historical data trend for Sears Hometown and Outlet Stores'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.

Sears Hometown and Outlet Stores Gross Margin % Chart

Sears Hometown and Outlet Stores Annual Data
Trend Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 23.45 22.66 19.75 20.26 22.29

Sears Hometown and Outlet Stores Quarterly Data
Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19
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 18.62 25.02 19.74 21.31 18.81

Competitive Comparison of Sears Hometown and Outlet Stores's Gross Margin %

For the Department Stores subindustry, Sears Hometown and Outlet Stores'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.


Sears Hometown and Outlet Stores's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Sears Hometown and Outlet Stores's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Sears Hometown and Outlet Stores's Gross Margin % falls into.



Sears Hometown and Outlet Stores Gross Margin % Calculation

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

Sears Hometown and Outlet Stores's Gross Margin for the fiscal year that ended in Jan. 2019 is calculated as

Gross Margin % (A: Jan. 2019 )=Gross Profit (A: Jan. 2019 ) / Revenue (A: Jan. 2019 )
=323.2 / 1449.948
=(Revenue - Cost of Goods Sold) / Revenue
=(1449.948 - 1126.752) / 1449.948
=22.29 %

Sears Hometown and Outlet Stores's Gross Margin for the quarter that ended in Jul. 2019 is calculated as


Gross Margin % (Q: Jul. 2019 )=Gross Profit (Q: Jul. 2019 ) / Revenue (Q: Jul. 2019 )
=31.7 / 168.594
=(Revenue - Cost of Goods Sold) / Revenue
=(168.594 - 136.878) / 168.594
=18.81 %

* 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.


Sears Hometown and Outlet Stores  (NAS:SHOS) 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

Sears Hometown and Outlet Stores had a gross margin of 18.81% for the quarter that ended in Jul. 2019 => No sustainable 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.


Sears Hometown and Outlet Stores Gross Margin % Related Terms

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


Sears Hometown and Outlet Stores (Sears Hometown and Outlet Stores) Business Description

Traded in Other Exchanges
N/A
Address
5500 Trillium Boulevard, Suite 501, Hoffman Estates, IL, USA, 60192
Sears Hometown and Outlet Stores Inc is a national retailer engaged in the selling of home appliances, lawn and garden equipment, and hardware at its stores and on its websites. It also offers its customers the opportunity to acquire home appliance, lawn and garden, fitness, bedding, and other categories of merchandise and product protection agreements through the lease-to-own program that it operates by agreement with a third party. Its business segments are the Sears Hometown and Hardware, and the Sears Outlet.
Executives
William K Phelan director 3333 BEVERLY ROAD HOFFMAN ESTATES IL 60179
James F Gooch director C/O 5500 TRILLIUM BOULEVARD, SUITE 501, HOFFMAN ESTATES IL 60192
Josephine Linden director 6601 SOUTH BERMUDA ROAD, LAS VEGAS NV 89119
Esl Partners Lp 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOR FL 33154
Esl Investments Inc 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOR ISLANDS FL 33154
Edward S Lampert 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOUR FL 33154
Rbs Partners L P /ct 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOR ISLANDS FL 33154
Ryan D Robinson officer: Senior VP and CFO/CAO 5500 TRILLIUM BOULEVARD, SUITE 501, HOFFMAN ESTATES IL 60192
Rbs Investment Management Llc 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOR FL 33154
Esl Institutional Partners Lp 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOR FL 33154
Crk Partners Llc 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOR ISLANDS FL 33154
Spe Master I, L.p. 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOR FL 33154
Spe I Partners, L.p. 10 percent owner 1170 KANE CONCOURSE, SUITE 200, BAY HARBOR FL 33154
Jeffrey Flug director C/O PENNANTPARK INVESTMENT CORPORATION, 445 PARK AVENUE, 10TH FLOOR, NEW YORK NY 10022
William R Harker director 5500 TRILLIUM BOULEVARD, SUITE 501, HOFFMAN ESTATES IL 60192