Earnings season lets investors see how much money they’re making. But consumers can use this time to see just how much they’re paying up for certain brands. There are 11 companies selling consumer goods that command premium pricing, including cosmetics companies Nu Skin (NUS) and Estee Lauder (EL), alcohol seller Brown-Forman (BF.B)and accessory maker Coach (COH), giving them gross margins of 60% or higher, according to a USA TODAY review of data from S&P Capital IQ. To hit these huge profit margins, these companies charge more than twice for what it costs them to produce their products, excluding overhead. The higher a company’s gross margin, the more it keeps from every dollar of revenue after paying direct costs. And these companies are definitely charging top dollar. The average consumer company in the consumer products universe has a gross margin of roughly 37%, meaning it keeps just 37 cents of every dollar of revenue after paying direct costs. The analysis looks at the companies in the consumer staples and consumer discretionary sectors of the broad Russell 1000 with the highest gross margins over the past 12 months. Hotels, restaurants, media and Internet retail sectors were excluded. Next time you buy cosmetics, designer apparel, cigarettes, branded beverages and baby formula — know that you’re paying some of the biggest price premiums around. These are the products consumers typically buy that have some of the largest gross margins going — at least among branded products. Cosmetics are some of the most profitable products around. Nu Skin, the maker of anti-aging products and lotions, enjoys an 83% profit margin over the past 12 months ranking it tops in this universe by this measure. But Nu Skin’s gross margin is only barely ahead of another cosmetics company, Estee Lauder, with a 80% gross margin over the past 12 months. Brand power consumers are willing to pay up for can be lucrative. That’s clear when looking at beverages where consumers pay a premium. Jack Daniel’s maker Brown-Forman sports a 70% gross margin, baby formula maker Mead Johnson hits a gross margin of 62% while Coca-Cola (KO) is at 61%. You’re also paying up for those labels sewn into your clothing – big time. Handbag and accessory maker Coach (COH) enjoys a gross margin of 60% while Michael Kors (KORS) is at 61%. RUSSELL 1000 CONSUMER STOCKS WITH THE HIGHEST GROSS MARGINS OVER THE PAST 12 MONTHSCompanySymbolGross margin % LTMNu SkinNUS82.7%Estee LauderEL80.3%CoachCOH69.7%Brown-FormanBF.B69.6%TupperwareTUP66%Philip MorrisPM65.7%AvonAVP61.8%Mead Johnson NutritionMJN61.7%Abercrombie & FitchANF61.4%Coca-ColaKO61.3%Michael KorsKORS61.1%Source: S&P Capital IQ, USA TODAYBig profit margins, though, don’t necessarily translate into big stock gains. A custom equal-weighted index of the stocks with high gross margins is down nearly 11% this year, while the S&P 500 is up nearly 10%. High gross margin stocks are lagging even more over the past 12 months. The index of high gross-margin stocks is down about 10%, while the S&P 500 is up nearly 14%. Chart source: S&P Capital IQ, USA TODAY research How can shares of companies that command top dollar for their products possibly lag? Remember many of these companies have massive overhead costs that eat away much of their gross margins. Consider Avon (AVP). The company generated a gross profit of $5.7 billion on sales of $9.2 billion over the past 12 months. That’s an impressive gross profit. The problem is Avon also had operating costs of $5 billion plus restructuring costs and interest expense. By the time it’s was said and done, the company posted a $127 million net loss over the past 12 months. Shares of Avon are down 43% over the past 12 months. And defending lofty gross profit margins can be extremely difficult in areas where consumers have choice of brands or can switch to replacement products. Advertising and promotion costs also eat away at gross profit — but these costs are often necessarily to maintain a product’s demand and cache with consumers. Keeping growth and margins can be tough. Coach has held the line on gross profit, despite the rise of Michael Kors (KORS) as a rival. Coach’s gross margin in the September quarter was 69.3%, which is in line with the 69.7% level the past 12 months. But the problem is revenue is falling as competition heats up. Revenue fell roughly 10% in the September quarter. Shares are down 35% over the past 12 months. So investors: Just because consumers are paying up for a product, doesn’t mean that premium will be headed your way. RUSSELL 1000 CONSUMER STOCKS WITH THE HIGHEST GROSS MARGINS OVER THE PAST 12 MONTHS – STOCK PRICE CHANGE LTMCompanySymbolStock price ch. % LTMNu SkinNUS-57.8%Estee LauderEL3.3%CoachCOH-35.4%Brown-FormanBF.B25.9%TupperwareTUP-30.8%Philip MorrisPM-0.9%AvonAVP-43%Mead Johnson NutritionMJN20.6%Abercrombie & FitchANF-13.8%Coca-ColaKO5.9%Michael KorsKORS-4.5% Source: S&P Capital IQ, USA TODAY