Name: Gross Profit Margin

Definition: Gross profit margin shows how much profit the company keeps from each dollar of sales after covering the direct cost of making its products or delivering services. High margins suggest strong pricing power or efficient production. Shrinking margins might mean rising costs or tougher competition eating into profits.

Interpretation:
• In '2022', ZUMZ's gross profit margin was 38.6%, showing profitability after production and operational costs. Industry average for Clothing/Shoe/Accessory Stores in '2022' stood at 40.5%.
• In '2023', ZUMZ's gross profit margin was 33.9%, showing profitability after production and operational costs. The decline from '2022' may indicate some operational or financial challenges. Industry average for Clothing/Shoe/Accessory Stores in '2023' stood at 37.6%. Industry average declined by 2.9% from previous year.
• In '2024', ZUMZ's gross profit margin was 32.1%, showing profitability after production and operational costs. The decline from '2023' may indicate some operational or financial challenges. Industry average for Clothing/Shoe/Accessory Stores in '2024' stood at 38.2%. Industry average increased by 0.6% compared to previous year.
• In '2025', ZUMZ's gross profit margin was 34.1%, showing profitability after production and operational costs. The increase since '2024' reflects strengthening financial performance. Industry average for Clothing/Shoe/Accessory Stores in '2025' stood at 39.7%. Industry average increased by 1.5% compared to previous year.
Overall, ZUMZ's gross profit margin has consistently declined during the past 4 years.

Formula: Gross Profit Margin = (Revenue - COGS) / Revenue

Good Range: Often 20%-60% depending on industry.