ROSTNEUTRAL

Gross Margin

29.6%

Higher than 37% of Consumer Cyclical sector peers

Updated 368h ago

Sector Performance

37th percentile

ROST

29.6%

Sector Median

36.3%

Sector Avg

30.2%

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Deep Analysis

Gross margin, which is the percentage of revenue a company keeps after paying for the cost of goods sold, currently sits at 29.6% for ROST.

This is below the Consumer Cyclical sector median of 36.3%, placing ROST in the 37th percentile among its peers. The year-over-year change is not available, and the trend direction over the last eight quarters is also not available, but the quarter-over-quarter change shows a decline of 4.2% from 30.9% to 29.6%. The combination of a below-median gross margin level and a recent sequential decline suggests potential pressure on profitability, which could increase risk for investors seeking stable margins. This metric does not support a bullish stance and instead contradicts the overall NEUTRAL verdict, as a weakening margin profile typically warrants caution.

Frequently Asked Questions

What does the Gross Margin tell investors about ROST?

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 ROST's Gross Margin compare to its sector?

ROST's Gross Margin of 29.6% compares to a Consumer Cyclical sector median of 36.3%, placing it in the 37th percentile.

Who are ROST's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BBWI (42.6%), SE (44.3%), YUM (44.7%), RIDE (49.4%), CZR (50.3%).

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.