Empire Co (TSX:EMP.A) Gross Margin % : 26.52% (As of Jan. 2024)

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What is Empire Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Empire Co's Gross Profit for the three months ended in Jan. 2024 was C$1,987 Mil. Empire Co's Revenue for the three months ended in Jan. 2024 was C$7,494 Mil. Therefore, Empire Co's Gross Margin % for the quarter that ended in Jan. 2024 was 26.52%.

The historical rank and industry rank for Empire Co's Gross Margin % or its related term are showing as below:

TSX:EMP.A' s Gross Margin % Range Over the Past 10 Years
Min: 23.94 Med: 24.65 Max: 26.11
Current: 26.11

During the past 13 years, the highest Gross Margin % of Empire Co was 26.11%. The lowest was 23.94%. And the median was 24.65%.

TSX:EMP.A's Gross Margin % is ranked better than
61.29% of 310 companies
in the Retail - Defensive industry
Industry Median: 22.835 vs TSX:EMP.A: 26.11

Empire Co had a gross margin of 26.52% for the quarter that ended in Jan. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Empire Co was 1.20% per year.

Empire Co Gross Margin % Historical Data

The historical data trend for Empire 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.

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Empire Co Gross Margin % Chart

Empire Co Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Gross Margin %

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24.20

24.95

25.47

25.39

25.57

Empire Co Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Gross Margin %	Get a 7-Day Free Trial															25.38	26.44	25.69	25.85	26.52

Competitive Comparison of Empire Co's Gross Margin %

For the Grocery Stores subindustry, Empire 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.

Empire Co's Gross Margin % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Empire Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Empire Co's Gross Margin % falls into.

Empire Co Gross Margin % Calculation

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

Empire Co's Gross Margin for the fiscal year that ended in Apr. 2023 is calculated as

Gross Margin % (A: Apr. 2023 )	=	Gross Profit (A: Apr. 2023 )	/	Revenue (A: Apr. 2023 )
	=	7792.7	/	30478.1
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(30478.1 - 22685.4)	/	30478.1
	=	25.57 %

Empire Co's Gross Margin for the quarter that ended in Jan. 2024 is calculated as

Gross Margin % (Q: Jan. 2024 )	=	Gross Profit (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	1987.3	/	7494.4
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(7494.4 - 5507.1)	/	7494.4
	=	26.52 %

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.

Empire Co (TSX:EMP.A) 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

Empire Co had a gross margin of 26.52% for the quarter that ended in Jan. 2024 => Competition eroding margins

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.

Empire Co Gross Margin % Related Terms

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Empire Co (TSX:EMP.A) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Empire Co Ltd (TSX:EMP.A) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

EMLAF:USA C15:Germany

Address

115 King Street, Stellarton, NS, CAN, B0K 1S0

Website

https://www.empireco.ca

Empire Co Ltd key businesses are food retailing, investments, and other operations. The food retailing division operates through Empire's subsidiary Sobeys and represents nearly all of the company's income. This segment owns, affiliates, or franchises more than 1,500 stores in 10 provinces, under retail banners including Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods, Lawton's Drug Stores, and multiple retail fuel locations. The company's investment and other operations segment include the investment in Crombie REIT, which is an open-ended Canadian real estate investment trust, as well as the Genstar Development Partnership.

Empire Co (TSX:EMP.A) Headlines

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