LICAUTIOUS

LI Gross Margin Analysis

7.9%

Higher than 7% of Consumer Cyclical sector peers

Updated 72h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company retains after covering the direct costs of producing its goods—a lower figure indicates thinner profitability from sales.

Sector Performance

7th percentile

7.9%

Sector Median

36.5%

Sector Avg

30.1%

Prior Period

17.8%(May 2026)

↓ Declining

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Deep Analysis

Gross margin measures the percentage of revenue a company retains after covering the direct costs of producing its goods—a lower figure indicates thinner profitability from sales.

At 7.9%, LI’s margin sits far below the sector median of 36.5%, placing it in the 7th percentile among Consumer Cyclical peers, meaning 93% of competitors have a higher gross margin. Year-over-year change is not available, but quarter-over-quarter the margin dropped 55.6% from 17.8% in the prior period. The combination of an already low margin and a sharp quarterly decline points to elevated investment risk, as both cost pressures or pricing weakness may be worsening. This weak level and negative trend directly support the overall CAUTIOUS verdict, reinforcing concerns about the company’s core profitability compared to its industry.

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 36.5%, placing it in the 7th percentile.

Who are LI's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: URBN (36.6%), QSR (33.7%), CAVA (25.4%), BBY (23.5%), ROL (50.8%).

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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.