WOLVERINE WORLD WIDE INC.
For the Year Ended
(dollars in thousands)
Sales of merchandise
Cost of products sold
Selling and administrative expense
Income from operations
Other income (expense)
Earnings per share ($94,064 ÷ 48,888 shares)
Gross profit margin: $1,220,568 – $734,547 = $486,021
Gross profit percentage ratio: $486,021 ÷ $1,220,568 = .398
Gross margin or gross profit in dollars is the difference between the sales prices
and the costs of purchasing or manufacturing all goods that were sold during the
period (sometimes called the markup); that is, net revenue minus only one of the
expenses--cost of goods sold. The gross profit ratio is the amount of each net
sales dollar that was gross profit during the period. For this company, the rate
was 39.8%, which means that $.398 of each net sales dollar was gross profit
(alternatively, 39.8% of each sales dollar was gross profit for the period).
Wolverine World Wide's gross profit percentage was below Deckers’s current
(2008) percentage of 44.3%.
Deckers’s shoes have a reputation as a rugged
product as well as a premium "high fashion" product.
This has allowed it to
maintain higher prices and higher gross margins.
In marketing this is called the
value of brand equity.