Williams-Sonoma, Inc. stock research
FY2023 Q1
Williams-Sonoma (WSM) Gross Margin — Quarter Ended Apr 30, 2023
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue declined less proportionally, resulting in a lower gross margin. The gross margin weakened from both the immediately preceding quarter and the year-ago period.
Gross margin takeaway
Quarter ended Apr 30, 2023 · FY2023 Q1
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue declined less proportionally, resulting in a lower gross margin. The gross margin weakened from both the immediately preceding quarter and the year-ago period.
- The gross margin weakened primarily due to a larger proportional decline in gross profit relative to revenue, as cost of revenue remained comparatively stable.
- Compared to the prior quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was also lower. Revenue and gross profit declined in both comparisons, while cost of revenue decreased in the sequential comparison but was relatively stable year over year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.5%
Gross profit
$675.1M
Revenue
$1.8B
Cost of revenue
$1.1B
Quarter-over-quarter change
-2.7 pts
Year-over-year change
-5.4 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% |
| Apr 30, 2023 | $1.8B | $675.1M | $1.1B | 38.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 29, 2023
-2.7 pts
Year-over-year change
May 1, 2022
-5.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened primarily due to a larger proportional decline in gross profit relative to revenue, as cost of revenue remained comparatively stable.
Compared to the prior quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was also lower. Revenue and gross profit declined in both comparisons, while cost of revenue decreased in the sequential comparison but was relatively stable year over year.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as its stability amid declining revenue compressed gross margin.