Aoyama Trading Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -2%.
The historical rank and industry rank for Aoyama Trading Co's Gross Margin % or its related term are showing as below:
TSE:8219'
s Gross Margin % Range Over the Past 10 Years
Min: 49.58 Med: 55 Max: 57.52
Current: 51.59
During the past 13 years, the highestGross Margin % of Aoyama Trading Co was 57.52%. The lowest was 49.58%. And the median was 55.00%.
TSE:8219's Gross Margin % is ranked better than 75.34% of 1095
companies
in the Retail - Cyclical industry
Industry Median: 36.46
vs TSE:8219: 51.59
Aoyama Trading Co had a gross margin of 51.97% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Aoyama Trading Co was -2.00% per year.
Aoyama Trading Co Gross Margin % Historical Data
The historical data trend for Aoyama Trading Co'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 Aoyama Trading Co's Gross Margin %
For the Apparel Retail subindustry, Aoyama Trading Co'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.
Aoyama Trading Co's Gross Margin % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Aoyama Trading Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Aoyama Trading Co'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.
Aoyama Trading Co (TSE:8219) 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
Aoyama Trading Co had a gross margin of 51.97% for the quarter that ended in Dec. 2023 => 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.
Aoyama Trading Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Aoyama Trading Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Aoyama Trading Co Ltd is an apparel retailer specializing in business wear. Men's business wear accounts for roughly two thirds of the company's total sales, while women's business wear accounts for roughly 10%. Business wear stores include Yofuku-no-Aoyama, which is the company's primary brand and has nearly 800 locations; The Suit Company; and Next Blue. Other business segments include casual wear, with store brands including Universal Language and Calaja; credit cards; printing and media; and total repair service, which includes the company's Mister Minit stores, providing repair services such as shoe repair and key duplication. Aoyama's sales are primarily in Japan, but the firm has business throughout the Asia-Pacific region.
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