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I have not looked hard at these financials (nor do I have ANY experience with the cosmetic industry) but it appears Estee Lauder has a Gross Profit Margin of 79
by 0003 15y ago
I have not looked hard at these financials (nor do I have ANY experience with the cosmetic industry) but it appears Estee Lauder has a Gross Profit Margin of 79% in its most recent quarter. That is pretty incredible. Of course, this excludes advertising expense, but it does provide evidence of significant mark-ups on their products.
- HaloZero 15y agoWhere'd you get that data? The google finance page seems to state 7.99% not 79% in 2011. You sure you didn't misplace a decimal?
- jonknee 15y agoGross profit just counts cost of goods sold, not expenses like your employees. Cosmetics are high make up on a marginal basis, but involve lots of boots on the ground and advertising. Their Net Income is what you and I were talking about and is not outrageous at all. (This is fairly similar to drug companies--very high marginal costs but in the end very normal profits.)
- hollerith 15y agoAgreed, but instead of "very high marginal costs", you meant, "very high marginal income" or "very high gross profit".