Williams-SonomaSTU:WM1 -1.47%88 Gross Margin % is 43.95% as of Apr. 2026, which is 8% above its 10-year median of 40.63. GuruFocus rates STU:WM1 with a GF Score™ of 88/100 and a GF Value™ of €152.12 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,113 Retail - Cyclical companies, Williams-Sonoma ranks better than 67.57% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Williams-Sonoma had a gross margin of 43.95% for the quarter that ended in Apr. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Williams-Sonoma Gross Margin % Related Terms
Williams-Sonoma Gross Margin % Historical Data
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The historical data trend for Williams-Sonoma's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:WM1 vs CASY, DKS, ULTA: Gross Margin % Comparison
For the Specialty Retail subindustry, Williams-Sonoma's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Williams-Sonoma Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Williams-Sonoma's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Williams-Sonoma's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Williams-Sonoma (STU:WM1) has a Gross Margin % of 43.95% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Williams-Sonoma and its competitors. This is near median its historical median of 40.63. Over the past decade, Williams-Sonoma's Gross Margin % has ranged from 36.27 to 46.45. According to the industry distribution chart, Williams-Sonoma ranks #361 out of 1113 companies in the Retail - Cyclical industry, placing it in the top 32.4%.
Is Williams-Sonoma's Gross Margin % too high?
Williams-Sonoma's current Gross Margin % of 43.95% is near median its 10-year median of 40.63. Over the past 10 years, this metric has ranged from a low of 36.27 to a high of 46.45. The Retail - Cyclical industry median Gross Margin % is 36.37. Williams-Sonoma's value of 43.95% is 20.8% above this industry median. Based on the distribution chart, Williams-Sonoma ranks #361 out of 1113 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Williams-Sonoma has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Williams-Sonoma's Gross Margin % compare to CASY and DKS?
According to the Retail - Cyclical industry distribution chart, Williams-Sonoma ranks #361 out of 1113 companies for Gross Margin %. This puts Williams-Sonoma in the upper half of its industry. The industry median Gross Margin % is 36.37. Williams-Sonoma's value of 43.95% is 20.8% above this benchmark. Historically, Williams-Sonoma's own Gross Margin % has ranged from 36.27 to 46.45 over the past decade. While the company's 10-year median is 40.63 vs. the industry median of 36.37, Williams-Sonoma has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.37, based on 1,113 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Williams-Sonoma's current Gross Margin % of 43.95% is 20.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Williams-Sonoma and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Williams-Sonoma's current Gross Margin % is 43.95%, which is near median its own 10-year median of 40.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Williams-Sonoma stock overvalued right now?
Based on GuruFocus' analysis, Williams-Sonoma (STU:WM1) is currently considered Significantly Overvalued. The stock's GF Value™ is €152.12, compared to a current price of €201.00 — trading 32.1% above its estimated fair value. The current Gross Margin % is 43.95%, which is near median its 10-year median of 40.63 and 20.8% above the Retail - Cyclical industry median of 36.37. Williams-Sonoma's overall GF Score™ is 88/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Williams-Sonoma (STU:WM1), the current Gross Margin % is 43.95% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Williams-Sonoma (STU:WM1) Overvalued in 2026?
Based on GuruFocus' analysis, Williams-Sonoma stock appears to be overvalued.
The current stock price of €201.00 is trading 32.1% above its estimated GF Value™ of €152.12.
GuruFocus considers Williams-Sonoma to be Significantly Overvalued.
Key valuation signals for STU:WM1:
Gross Margin %: 43.95% (near median its 10-year median of 40.63)
GF Value™: €152.12 vs. price of €201.00 (32.1% above fair value)
Industry Position: 20.8% above the Retail - Cyclical median (#361 of 1113)
No single metric tells the full story. See the STU:WM1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
With a retail and direct-to-consumer presence, Williams-Sonoma is a player in the nearly $300 billion domestic home category and $450 billion international home market, focused on expanding its exposure in the B2B ($80 billion total addressable market), marketplace, and franchise areas. Namesake Williams-Sonoma (153 stores) offers high-end cooking essentials, while Pottery Barn (180) provides casual home accessories. West Elm (116) is an emerging concept for young professionals, and Rejuvenation (13) offers lighting and house parts. Brand extensions include Pottery Barn Kids and Pottery Barn Teen (43) as well as Mark & Graham and GreenRow. Williams-Sonoma also has a business-to-business team that supports projects that range from residential to large-scale commercial.
88GF Score
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