• Target average gross margin for 2023 was 25.59%, a 6.33% increase from 2022.
• Target average gross margin for 2022 was 27.32%, a 8.57% decline from 2021.
• Target average gross margin for 2021 was 29.88%, a 2.54% decline from 2020.

Gross margin can be defined as a company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage.