Williams-Sonoma, Inc. stock research
FY2023 Q4
Williams-Sonoma (WSM) Gross Margin — Quarter Ended Jan 28, 2024
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose less proportionally, leading to an improved gross margin. Versus the same quarter last year, revenue was lower but gross profit remained stable as cost of revenue declined, resulting in a higher gross margin.
Gross margin takeaway
Quarter ended Jan 28, 2024 · FY2023 Q4
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose less proportionally, leading to an improved gross margin. Versus the same quarter last year, revenue was lower but gross profit remained stable as cost of revenue declined, resulting in a higher gross margin.
- The gross margin improved sequentially and year-over-year, driven by a more favorable relationship between cost of revenue and revenue. The strongest observable driver is the reduction in cost of revenue relative to revenue, which supported gross profit stability despite lower revenue year-over-year.
- Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter last year, revenue was lower but gross profit was stable, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
46.0%
Gross profit
$1.0B
Revenue
$2.3B
Cost of revenue
$1.2B
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+4.8 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 |
|---|---|---|---|---|
| Apr 30, 2023 | $1.8B | $675.1M | $1.1B | 38.5% |
| Jul 30, 2023 | $1.9B | $757.6M | $1.1B | 40.7% |
| Oct 29, 2023 | $1.9B | $822.4M | $1.0B | 44.4% |
| Jan 28, 2024 | $2.3B | $1.0B | $1.2B | 46.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 29, 2023
+1.6 pts
Year-over-year change
Jan 29, 2023
+4.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by a more favorable relationship between cost of revenue and revenue. The strongest observable driver is the reduction in cost of revenue relative to revenue, which supported gross profit stability despite lower revenue year-over-year.
Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter last year, revenue was lower but gross profit was stable, and gross margin was higher.
Monitor the trajectory of cost of revenue relative to revenue, as its decline was the primary factor supporting gross margin expansion.