Williams-Sonoma, Inc. stock research
FY2022 Q4
Williams-Sonoma (WSM) Gross Margin — Quarter Ended Jan 29, 2023
Revenue was stable compared to the same quarter last year, while gross profit and gross margin both declined. Cost of revenue remained at a similar level, indicating that the margin compression was driven by a lower proportion of revenue converting into gross profit.
Gross margin takeaway
Quarter ended Jan 29, 2023 · FY2022 Q4
Revenue was stable compared to the same quarter last year, while gross profit and gross margin both declined. Cost of revenue remained at a similar level, indicating that the margin compression was driven by a lower proportion of revenue converting into gross profit.
- Gross margin weakened sequentially and year-over-year, with the current quarter's margin lower than both the prior quarter and the same quarter last year. The decline from the prior year was more pronounced than the sequential change.
- Compared to the immediately preceding quarter, revenue increased while gross profit rose less proportionally, resulting in a slightly lower gross margin. Versus the same quarter one year earlier, revenue was essentially unchanged, but gross profit and gross margin were both lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.2%
Gross profit
$1.0B
Revenue
$2.5B
Cost of revenue
$1.4B
Quarter-over-quarter change
n/a
Year-over-year change
-3.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jan 29, 2023 | $2.5B | $1.0B | $1.4B | 41.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Jan 30, 2022
-3.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin weakened sequentially and year-over-year, with the current quarter's margin lower than both the prior quarter and the same quarter last year. The decline from the prior year was more pronounced than the sequential change.
Compared to the immediately preceding quarter, revenue increased while gross profit rose less proportionally, resulting in a slightly lower gross margin. Versus the same quarter one year earlier, revenue was essentially unchanged, but gross profit and gross margin were both lower.
Monitor the trajectory of gross margin relative to revenue growth, as the current quarter shows margin compression despite stable revenue.