Grandparent's 5% or less is "earnings as a fraction of revenue", which is called "net profit margin" or just "net margin", whereas your 50% is gross margin. Ac

Grandparent's 5% or less is "earnings as a fraction of revenue", which is called "net profit margin" or just "net margin", whereas your 50% is gross margin. According to an LLM I just consulted Walmart's net margin for the last 5 years for which we have data never got above 3%. To calculate net margin, we include every expense, e.g., management salaries, e.g., the cost (rent of depreciation) of the stores. To calculate gross margin, we include only the expense of obtaining (buying or making) the goods solds. When considering whether a retailer can eat the cost of tariffs or must pass them on to the consumer, net margin is more relevant than your figure, which is gross margin.