Williams-Sonoma, Inc. stock research
FY2025 Q1
Williams-Sonoma (WSM) Gross Margin — Quarter Ended May 4, 2025
Revenue was stable compared to the same quarter last year, while gross profit and gross margin both decreased. Cost of revenue increased relative to revenue, compressing gross margin.
Gross margin takeaway
Quarter ended May 4, 2025 · FY2025 Q1
Revenue was stable compared to the same quarter last year, while gross profit and gross margin both decreased. Cost of revenue increased relative to revenue, compressing gross margin.
- The gross margin weakened compared to both the prior quarter and the same quarter last year, driven by a higher proportion of cost of revenue relative to revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue was stable, but gross profit and gross margin were lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.3%
Gross profit
$765.8M
Revenue
$1.7B
Cost of revenue
$964.3M
Quarter-over-quarter change
-3.1 pts
Year-over-year change
-3.6 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 28, 2024 | $1.8B | $803.9M | $984.4M | 45.0% |
| Oct 27, 2024 | $1.8B | $817.6M | $983.1M | 45.4% |
| Feb 2, 2025 | $2.5B | $1.2B | $1.3B | 47.3% |
| May 4, 2025 | $1.7B | $765.8M | $964.3M | 44.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 2, 2025
-3.1 pts
Year-over-year change
Apr 28, 2024
-3.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened compared to both the prior quarter and the same quarter last year, driven by a higher proportion of cost of revenue relative to revenue.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue was stable, but gross profit and gross margin were lower.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.