KRCAUTIOUS

KR Gross Margin Analysis

23.0%

Updated 276h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after paying the direct costs of producing its goods — here, 23.0% of every dollar in sales is gross profit.

Sector Performance

17th percentile

23.0%

Sector Median

44.6%

Sector Avg

45.5%

Prior Period

23.4%(May 2026)

↓ Declining

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying the direct costs of producing its goods — here, 23.0% of every dollar in sales is gross profit.

That figure sits well below the sector median of 44.7%, ranking KR in the 18th percentile among its peers, meaning 82% of competitors have higher gross margins. The year-over-year change is not available, but the quarter-over-quarter decline is -1.7%, moving from 23.4% to 23.0% in the most recent period. A low gross margin combined with a recent drop suggests the company is earning less on each sale relative to its industry, which can signal pricing pressure or rising input costs. For an investor, this combination increases the risk that KR’s profitability will weaken further, limiting its financial flexibility. This metric directly supports the overall CAUTIOUS verdict, as both the level and direction point to below-average competitive positioning in the sector.

Frequently Asked Questions

What does the Gross Margin tell investors about KR?

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.

Who are KR's closest peers by Gross Margin?

The closest peers by Gross Margin include: MSCI (82.7%), SYF (82.7%), EA (82.8%), THC (83.4%), INTU (83.9%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.