Williams-Sonoma, Inc. stock research
FY2026 Q1
Williams-Sonoma (WSM) Gross Margin — Quarter Ended May 3, 2026
Revenue and gross profit both increased compared to the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from both the prior quarter and the year-ago quarter, indicating that cost of revenue grew faster than revenue relative to gross profit.
Gross margin takeaway
Quarter ended May 3, 2026 · FY2026 Q1
Revenue and gross profit both increased compared to the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from both the prior quarter and the year-ago quarter, indicating that cost of revenue grew faster than revenue relative to gross profit.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue increased while gross margin declined, implying that cost of revenue grew at a faster rate than revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.9%
Gross profit
$793.4M
Revenue
$1.8B
Cost of revenue
$1.0B
Quarter-over-quarter change
-2.9 pts
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| Aug 3, 2025 | $1.8B | $864.6M | $972.1M | 47.1% |
| Nov 2, 2025 | $1.9B | $867.7M | $1.0B | 46.1% |
| Feb 1, 2026 | $2.4B | $1.1B | $1.3B | 46.9% |
| May 3, 2026 | $1.8B | $793.4M | $1.0B | 43.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 1, 2026
-2.9 pts
Year-over-year change
May 4, 2025
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue increased while gross margin declined, implying that cost of revenue grew at a faster rate than revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly lower.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth has compressed gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Williams-Sonoma, Inc. (WSM) | 43.9% |