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    Gross Profit

    Gross profit is the profit earned by a brand or retailer after the deduction of associated costs necessary to producing and selling its products and services from total annual revenue.

    What Is Gross Profit?

    Gross profit represents an important financial metric in gaining visibility into an organization’s profitability and success over a given time period. You can calculate your business’s gross profit margin by subtracting the cost of goods sold (COGS) from the total revenue. Brands and retailers benchmark this data to study year-over-year (YOY) financial performance, compare performance to industry averages, and make future investment decisions on products and service offerings.

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