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Williams-Sonoma (NYSE:WSM) Operating Margin %

: 17.00% (As of Oct. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Williams-Sonoma's Operating Income for the three months ended in Oct. 2023 was $315 Mil. Williams-Sonoma's Revenue for the three months ended in Oct. 2023 was $1,854 Mil. Therefore, Williams-Sonoma's Operating Margin % for the quarter that ended in Oct. 2023 was 17.00%.

Good Sign:

Williams-Sonoma Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Williams-Sonoma's Operating Margin % or its related term are showing as below:

WSM' s Operating Margin % Range Over the Past 10 Years
Min: 7.69   Med: 10.06   Max: 17.62
Current: 15.85


WSM's Operating Margin % is ranked better than
89.61% of 1107 companies
in the Retail - Cyclical industry
Industry Median: 3.28 vs WSM: 15.85

Williams-Sonoma's 5-Year Average Operating Margin % Growth Rate was 20.50% per year.

Williams-Sonoma's Operating Income for the three months ended in Oct. 2023 was $315 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Oct. 2023 was $1,256 Mil.


Williams-Sonoma Operating Margin % Historical Data

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.

* Premium members only.

Williams-Sonoma Annual Data
Trend Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.69 7.90 13.43 17.62 17.27

Williams-Sonoma Quarterly Data
Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.49 19.15 11.36 14.58 17.00

Competitive 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 % Distribution

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.



Williams-Sonoma Operating Margin % Calculation

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. 2023 is calculated as

Operating Margin %=Operating Income (A: Jan. 2023 ) / Revenue (A: Jan. 2023 )
=1498.422 / 8674.417
=17.27 %

Williams-Sonoma's Operating Margin % for the quarter that ended in Oct. 2023 is calculated as

Operating Margin %=Operating Income (Q: Oct. 2023 ) / Revenue (Q: Oct. 2023 )
=315.077 / 1853.65
=17.00 %

* 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  (NYSE:WSM) Operating Margin % Explanation

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 Nokia’s 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

Thank you for viewing the detailed overview of Williams-Sonoma's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Williams-Sonoma (NYSE:WSM) Business Description

Traded in Other Exchanges
Address
3250 Van Ness Avenue, San Francisco, CA, USA, 94109
With a retail and direct-to-consumer presence, Williams-Sonoma is a player in the $300 billion domestic home category, focused on expanding its exposure in the B2B, marketplace, and franchise areas. Namesake Williams-Sonoma (163 stores) offers high-end cooking essentials, while Pottery Barn (191) provides casual home accessories. Brand extensions include Pottery Barn Kids (46) and PBteen. West Elm (123) is an emerging concept for young professionals, and Rejuvenation (10) offers lighting and house parts. Williams-Sonoma also has a business-to-business team that supports projects that range from residential to large-scale commercial.
Executives
Laura Alber officer: PRESIDENT, POTTERY BARN BRANDS
Karalyn Smith officer: EVP CHIEF TALENT OFFICER C/O WILLIAMS-SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Marta Benson officer: PRESIDENT POTTERY BARN BRAND C/O RESTORATION HARDWARE, 15 KOCH ROAD, SUITE J, CORTE MADERA CA 94925
Jeremy Brooks officer: CHIEF ACCOUNTING OFFICER C/O WILLIAMS-SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Jeffrey Howie officer: EVP CHIEF FINANCIAL OFFICER C/O WILLIAMS-SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Julie Whalen officer: VP, CONTROLLER 3260 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Ryan Ross officer: PRESIDENT WS BRAND 3250 VAN NESS AVE., SAN FRANCISCO CA 94109
Sabrina Simmons director GAP INC., 2 FOLSOM STREET, SAN FRANCISCO CA 94105
Anne A. Finucane director ONE CVS DRIVE, WOONSOCKET RI 02895
David Randolph King officer: SVP GENERAL COUNSEL 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Paula B Pretlow director C/O CION ARES MANAGEMENT LLC, 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Alex Bellos officer: PRESIDENT WEST ELM BRAND C/O WILLIAMS-SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Esi Eggleston Bracey director C/O SIX FLAGS ENTERTAINMENT CORPORATION, 1000 BALLPARK WAY, SUITE 400, ARLINGTON TX 76011
Grace Puma Whiteford director C/O WILLIAM SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Bellamy Adrian D P director C/O GAP, INC., 2 FOLSOM ST., SAN FRANCISCO CA 94105