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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 Jan. 2024 was $458 Mil. Williams-Sonoma's Revenue for the three months ended in Jan. 2024 was $2,279 Mil. Therefore, Williams-Sonoma's Operating Margin % for the quarter that ended in Jan. 2024 was 20.10%.
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:
Williams-Sonoma's 5-Year Average Operating Margin % Growth Rate was 19.70% per year.
Williams-Sonoma's Operating Income for the three months ended in Jan. 2024 was $458 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was $1,244 Mil.
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.
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.
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. 2024 is calculated as
Operating Margin % | = | Operating Income (A: Jan. 2024 ) | / | Revenue (A: Jan. 2024 ) |
= | 1244.193 | / | 7750.652 | |
= | 16.05 % |
Williams-Sonoma's Operating Margin % for the quarter that ended in Jan. 2024 is calculated as
Operating Margin % | = | Operating Income (Q: Jan. 2024 ) | / | Revenue (Q: Jan. 2024 ) |
= | 458.091 | / | 2278.937 | |
= | 20.10 % |
* 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 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.
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.
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 |
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