CPRICAUTIOUS

Gross Margin

64.8%

Higher than 94% of Consumer Cyclical sector peers

Updated 144h ago

Sector Performance

94th percentile

CPRI

64.8%

Sector Median

36.3%

Sector Avg

30.6%

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Deep Analysis

Capri Holdings' gross margin of 64.8% means that for every dollar of revenue, the company keeps about 65 cents after paying the direct costs of producing its goods—a measure of pricing power and production efficiency.

This is well above the sector median of 36.3%, placing Capri in the 92nd percentile among Consumer Cyclical peers. The metric has been stable over the last eight quarters; while the year-over-year change is not available, the quarter-over-quarter change is +6.1%, moving from 61.1% to 64.8% in the most recent period. A high and stable gross margin at this level typically signals low near-term risk of margin compression, which is a favorable attribute. However, this metric contradicts the overall CAUTIOUS verdict because a strong, stable margin often supports a more bullish outlook, yet the platform's caution suggests other risk factors—such as demand or debt—dominate the assessment.

Frequently Asked Questions

What does the Gross Margin tell investors about CPRI?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does CPRI's Gross Margin compare to its sector?

CPRI's Gross Margin of 64.8% compares to a Consumer Cyclical sector median of 36.3%, placing it in the 94th percentile.

Who are CPRI's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BBY (23.5%), BROS (23.1%), TSLA (21.1%), XPEV (20.6%), BWA (19.2%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.