REICAUTIOUS

REI Gross Margin Analysis

38.1%

Higher than 56% of Energy sector peers

Updated 96h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after paying direct costs of producing its goods or services; REI's current 38.1% means it retains about 38 cents of every dollar.

Sector Performance

56th percentile

REI

38.1%

Sector Median

32.9%

Sector Avg

39.7%

Prior Period

62.4%(May 2026)

↓ Declining

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying direct costs of producing its goods or services; REI's current 38.1% means it retains about 38 cents of every dollar.

This is above the Energy sector median of 32.9%, placing REI in the 56th percentile among its peer group. Year-over-year change and the eight-quarter trend are not available, but quarter-over-quarter gross margin fell sharply by 38.9% from the prior period's 62.4%. The combination of a level that still beats the sector median yet a dramatic recent drop suggests potential instability in pricing or costs that may offset the relative strength. This sharp quarterly decline supports the overall CAUTIOUS verdict, as it signals recent deterioration that warrants closer monitoring despite the still-above-median margin.

Frequently Asked Questions

What does the Gross Margin tell investors about REI?

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 REI's Gross Margin compare to its sector?

REI's Gross Margin of 38.1% compares to a Energy sector median of 32.9%, placing it in the 56th percentile.

Who are REI's closest peers by Gross Margin?

The closest Energy peers by Gross Margin include: LNG (31.7%), PXD (34.2%), ARRY (28.2%), AR (39.8%), ENB (25.9%).

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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.