Williams-SonomaSTU:WM1 -0.15%88 Operating Margin % is 16.16% as of Apr. 2026, which is 10% above its 10-year median of 14.74. GuruFocus rates STU:WM1 with a GF Score™ of 88/100 and a GF Value™ of €145.37 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Williams-Sonoma ranks better than 92.46% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Williams-Sonoma Operating Margin % Related Terms
Williams-Sonoma Operating Margin % Historical Data
* Premium members only.
The historical data trend for Williams-Sonoma's Operating 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 ULTA, DKS, CASY: Operating Margin % Comparison
For the Specialty Retail subindustry, Williams-Sonoma's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Williams-Sonoma's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Williams-Sonoma's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Williams-Sonoma's Operating Margin % for the fiscal year that ended in Jan. 2026 is calculated as
* 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.
Williams-Sonoma (STU:WM1) has a Operating Margin % of 16.16% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Williams-Sonoma and its competitors. This is 10% above median its historical median of 14.74. Over the past decade, Williams-Sonoma's Operating Margin % has ranged from 7.69 to 18.55. According to the industry distribution chart, Williams-Sonoma ranks #85 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 7.5%.
Is Williams-Sonoma's Operating Margin % too high?
Williams-Sonoma's current Operating Margin % of 16.16% is 10% above median its 10-year median of 14.74. Over the past 10 years, this metric has ranged from a low of 7.69 to a high of 18.55. The Retail - Cyclical industry median Operating Margin % is 3.91. Williams-Sonoma's value of 16.16% is 313.8% above this industry median. Based on the distribution chart, Williams-Sonoma ranks #85 out of 1128 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. 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 Operating Margin % compare to ULTA and DKS?
According to the Retail - Cyclical industry distribution chart, Williams-Sonoma ranks #85 out of 1128 companies for Operating Margin %. This places Williams-Sonoma in the top 8% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.91. Williams-Sonoma's value of 16.16% is 313.8% above this benchmark. Historically, Williams-Sonoma's own Operating Margin % has ranged from 7.69 to 18.55 over the past decade. While the company's 10-year median is 14.74 vs. the industry median of 3.91, 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 Operating Margin % for a Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Williams-Sonoma's current Operating Margin % of 16.16% is 313.8% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Williams-Sonoma and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Williams-Sonoma's current Operating Margin % is 16.16%, which is 10% above median its own 10-year median of 14.74. 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 €145.37, compared to a current price of €198.65 — trading 36.7% above its estimated fair value. The current Operating Margin % is 16.16%, which is 10% above median its 10-year median of 14.74 and 313.8% above the Retail - Cyclical industry median of 3.91. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Williams-Sonoma (STU:WM1), the current Operating Margin % is 16.16% 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 €198.65 is trading 36.7% above its estimated GF Value™ of €145.37.
GuruFocus considers Williams-Sonoma to be Significantly Overvalued.
Key valuation signals for STU:WM1:
Operating Margin %: 16.16% (10% above median its 10-year median of 14.74)
GF Value™: €145.37 vs. price of €198.65 (36.7% above fair value)
Industry Position: 313.8% above the Retail - Cyclical median (#85 of 1128)
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
Get the complete analysis for STU:WM1
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
STU:WM1 has been successfully added to your 
