Leslies Inc (LESL)
Gross profit margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 533,335 | 548,223 | 605,251 | 657,262 | 671,721 | 673,741 | 644,616 | 624,707 | 610,761 | 595,160 |
| Revenue (ttm) | US$ in thousands | 1,378,163 | 1,403,018 | 1,453,814 | 1,527,384 | 1,535,663 | 1,531,880 | 1,467,427 | 1,389,785 | 1,351,089 | 1,299,337 |
| Gross profit margin | 38.70% | 39.07% | 41.63% | 43.03% | 43.74% | 43.98% | 43.93% | 44.95% | 45.21% | 45.80% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $533,335K ÷ $1,378,163K
= 38.70%
Leslies Inc's gross profit margin has displayed a declining trend over the past several quarters. The margin decreased from 45.80% in September 2021 to 38.70% in December 2023. This indicates that the company's gross profit as a percentage of revenue has been declining.
A declining gross profit margin can be a cause for concern as it may suggest that Leslies Inc is facing challenges in managing its production costs or pricing strategies. It could also indicate increased competition or pricing pressure in the market.
Management should closely analyze the factors contributing to this decline in gross profit margin and take necessary steps to address them. Strategies to improve efficiencies in production, renegotiate supplier contracts, or adjust pricing strategies may help in reversing this negative trend and improving profitability for the company.
Peer comparison
Dec 31, 2023