LICAUTIOUS

LI Gross Margin Analysis

7.9%

Higher than 8% of Consumer Cyclical sector peers

Updated 275h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying the direct costs of making a product, expressed as a percentage.

Sector Performance

8th percentile

7.9%

Sector Median

34.2%

Sector Avg

26.4%

Prior Period

17.8%(May 2026)

↓ Declining

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Deep Analysis

Gross margin is the share of revenue left after paying the direct costs of making a product, expressed as a percentage.

At 7.9%, LI retains less than 8 cents of every dollar in sales after those production costs, which is thin for a consumer cyclical company. For context, the sector median is 33.7%, and LI sits at the 8th percentile among peers, meaning most comparable companies report far higher margins. The trend is N/A: both the year-over-year change and the quarter-over-quarter change are listed as N/A, so there is no data to show whether margins are improving or deteriorating. This combination of a low current margin and absent trend data raises the risk that profitability could stay weak, while making it impossible to spot early signs of recovery. Because the margin is so far below the sector norm, this metric supports the overall CAUTIOUS verdict on the stock.

Frequently Asked Questions

What does the Gross Margin tell investors about LI?

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 LI's Gross Margin compare to its sector?

LI's Gross Margin of 7.9% compares to a Consumer Cyclical sector median of 34.2%, placing it in the 8th percentile.

Who are LI's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BABA (34.5%), AEO (33.9%), URBN (36.6%), GME (40.7%), RH (41.4%).

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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.