As Direct-to-Consumer (DTC) businesses are booming and going public as companies, their earnings report gave us some insights into their gross margins and what those products cost the companies to produce (cost of goods sold is the flip side of gross margin).
Canada Goose, in their Second Quarter Fiscal 2019 results, said that DTC gross margin is 75.6%, a 40 bps increase from last year.
cost of goods sold: 24.4%
Moncler similarly has a gross margin of 76.6% for 2019 H1.
cost of goods sold: 23.4%
Tiffany in the most recent quarter has a gross margin of 62.7%, decreasing from 64% the year before. LVMH recent announced its attempt to acquire Tiffany.
cost of goods sold: 37.3%
Even the giant consumer staples company Procter & Gamble’s gross margin stays at 47.7%.
cost of goods sold: 52.3%