Williams-Sonoma, Inc. stock research
FY2025 Q2
Williams-Sonoma (WSM) Gross Margin — Quarter Ended Aug 3, 2025
Gross profit is revenue minus cost of revenue, and gross margin is the ratio of gross profit to revenue. In the current quarter, gross profit increased relative to cost of revenue, resulting in a higher gross margin compared to both the prior quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Aug 3, 2025 · FY2025 Q2
Gross profit is revenue minus cost of revenue, and gross margin is the ratio of gross profit to revenue. In the current quarter, gross profit increased relative to cost of revenue, resulting in a higher gross margin compared to both the prior quarter and the same quarter last year.
- The strongest observable margin driver is higher full-price selling, as noted in the filing. This factor contributed to a larger increase in gross profit relative to revenue.
- Compared to the prior quarter, gross margin improved as gross profit rose more than revenue, while cost of revenue was relatively stable. Compared to the same quarter last year, gross margin also improved, with gross profit increasing and cost of revenue declining.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.1%
Gross profit
$864.6M
Revenue
$1.8B
Cost of revenue
$972.1M
Quarter-over-quarter change
+2.8 pts
Year-over-year change
+2.1 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 |
|---|---|---|---|---|
| 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% |
| Aug 3, 2025 | $1.8B | $864.6M | $972.1M | 47.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 4, 2025
+2.8 pts
Year-over-year change
Jul 28, 2024
+2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is higher full-price selling, as noted in the filing. This factor contributed to a larger increase in gross profit relative to revenue.
Compared to the prior quarter, gross margin improved as gross profit rose more than revenue, while cost of revenue was relatively stable. Compared to the same quarter last year, gross margin also improved, with gross profit increasing and cost of revenue declining.
Monitor inventory levels, as improved in-stock positions were cited as supporting both channels and may influence future margin trends.