Williams-Sonoma, Inc. stock research
FY2024 Q1
Williams-Sonoma (WSM) Gross Margin — Quarter Ended Apr 28, 2024
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit declined from the prior quarter but rose from a year ago. Gross margin improved sequentially and significantly year-over-year, as cost of revenue fell more sharply than revenue.
Gross margin takeaway
Quarter ended Apr 28, 2024 · FY2024 Q1
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit declined from the prior quarter but rose from a year ago. Gross margin improved sequentially and significantly year-over-year, as cost of revenue fell more sharply than revenue.
- The gross margin improvement was driven by a larger proportional decline in cost of revenue relative to revenue, resulting in a higher margin percentage despite lower revenue.
- Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, but gross margin improved slightly. Versus the same quarter one year earlier, revenue was lower, gross profit was higher, and gross margin strengthened substantially.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.9%
Gross profit
$795.2M
Revenue
$1.7B
Cost of revenue
$865.2M
Quarter-over-quarter change
+1.9 pts
Year-over-year change
+9.4 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 |
|---|---|---|---|---|
| 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% |
| Apr 28, 2024 | $1.7B | $795.2M | $865.2M | 47.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 28, 2024
+1.9 pts
Year-over-year change
Apr 30, 2023
+9.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by a larger proportional decline in cost of revenue relative to revenue, resulting in a higher margin percentage despite lower revenue.
Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, but gross margin improved slightly. Versus the same quarter one year earlier, revenue was lower, gross profit was higher, and gross margin strengthened substantially.
Monitor the impact of customer hesitancy towards furniture purchases on future revenue and margin trends, as noted in the filing.