PetSmart's gross profit for the
three
months ended in Oct. 2014 was €404 Mil. PetSmart's gross profit for the trailing twelve months (TTM) ended in Oct. 2014 was €1,683 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. PetSmart's gross profit for the
three
months ended in Oct. 2014 was €404 Mil. PetSmart's Revenue for the
three
months ended in Oct. 2014 was €1,372 Mil. Therefore, PetSmart's Gross Margin % for the quarter that ended in Oct. 2014 was 29.45%.
PetSmart had a gross margin of 29.45% for the quarter that ended in Oct. 2014 => Competition eroding margins
PetSmart Gross Profit Historical Data
The historical data trend for PetSmart's Gross Profit 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 Specialty Retail subindustry, PetSmart's Gross Profit, along with its competitors' market caps and Gross Profit 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.
PetSmart's Gross Profit Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, PetSmart's Gross Profit distribution charts can be found below:
* The bar in red indicates where PetSmart's Gross Profit falls into.
PetSmart Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
PetSmart's Gross Profit for the fiscal year that ended in Jan. 2014 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Oct. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was €1,683 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* 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.
PetSmart (FRA:PEM) Gross Profit 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
PetSmart had a gross margin of 29.45% for the quarter that ended in Oct. 2014 => Competition eroding margins
PetSmart Gross Profit Related Terms
Thank you for viewing the detailed overview of PetSmart's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
PetSmart Inc was incorporated in the State of Delaware in 1986. The Company provides specialty products, services and solutions for the lifetime needs of pets in North America. It offers a broad selection of products for all the life stages of pets, as well as various pet services including professional grooming, training, day camp for dogs and boarding. It also offers pet products through its website, PetSmart.com. As of 2 February 2014, it operated 1,333 retail stores and had full-service veterinary hospitals in 844 of its stores. MMI Holdings, Inc., through a wholly owned subsidiary, Medical Management International, Inc., operated 837 of the veterinary hospitals under the registered trade name of "Banfield, The Pet Hospital." The remaining 7 hospitals are operated by other third parties in Canada. The Company opened 55 net new stores in 2013 and at the end of the year operated 1,333 retail stores in the United States, Puerto Rico and Canada. Its stores typically range in size from 12,000 to 27,500 square feet and carry a broad selection of high-quality pet products at everyday low prices. It offers approximately 11,000 distinct items in stores and 9,000 additional items on its website, PetSmart.com, including nationally recognized brand names, as well as an extensive selection of proprietary brands across a range of product categories. All the Company's stores feature pet styling salons that provide high-quality grooming services and offer comprehensive pet training services. Its PetsHotels provide boarding for dogs and cats, which includes 24-hour supervision by caregivers who are trained to provide personalized pet care, temperature controlled rooms and suites, daily specialty treats and play time, as well as day camp for dogs. As of 3 February 2014, it operated 199 PetsHotels. The Company's trademarks include PetSmart, PetSmart.com, PetSmart PetsHotel, PetPerks, and Where Pets Are Family, as well as many others.
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