In discretionary space, INDU reported profitability decline of 3 percent YoY mainly due to contraction in gross margins
, down 297bps YoY to 14 percent.
Adil said although the rupee had gone down nearly 28% since December last year, still the company was able to maintain its gross margins
until the earlier quarters.
Capital Cubethen looked at the Gross Margin
Trend for Cumulus compared to the three other radio companies.
Firms that sell goods to end users typically have gross margins
With those figures in mind, Apple's gross margins
may suffer with the iPhone 6 launch believed to be within 2014.
improved 15 basis points to 26.6%, while selling, general and administrative expenses were cut by 20 basis points to 72.58% of sales.
"We expect our gross margin
to bounce back in the third quarter as our costs continue to fall and demand becomes stronger," said chief financial officer Terry Wang at a Reuters Climate and Energy Summit.
Careful planning and forecasting are important tools so that levels of production and stock are enough to meet demand but not so high that the businesses have to offer a discount on unsold goods or throw out perishable stock after its sell-by-date, as this will also adversely impact gross margins
. The sudden change in the economic environment in the Middle East during 2008 and 2009 meant that accurate planning and forecasting has been hugely challenging.
Inventory productivity ratios such as sales per square foot, gross margin
return on inventory and gross margin
per square foot all decreased.
However, 32% of Trendsetter CEOs reported increased gross margins
in the prior quarter, and 18% a decrease, for a net of 14% increasing--similar to the prior quarter.
In practice, that will mean revenues of around $7.6bn to $8.2bn in the second quarter, with gross margins
around 60%, plus or minus a couple of points.