REI Gross Margin Analysis

Gross margin is the share of revenue a company keeps after paying direct production costs, and REI’s current 56.0% means it retains $0.56 of every sales dollar before other expenses.

That figure sits above the sector median of 46.9%, placing REI in the 64th percentile among peers, so it runs more profitably at the product level than most comparable firms. No trend data exists for this metric — year-over-year, quarter-over-quarter, and the eight-quarter history are all unavailable, so the 56.0% is a single snapshot rather than a demonstrated direction. Higher margins typically reduce business risk because they offer a cushion against cost increases, yet the absence of any trend line means you cannot tell whether this advantage is improving or eroding. For an investor, the level suggests REI has pricing power or cost efficiency, but the missing history leaves that advantage unverified. This gross margin reading supports the overall CAUTIOUS verdict only mildly: strong profitability at the product level is a positive, but the lack of movement and the cautious stock-level view indicate other factors, such as growth or leverage, are weighing more heavily.

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