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Williams-Sonoma Inc. (NYSE:WSM)

This company has been moved to the archive! The financial data has not been updated since May 24, 2024.

Common-Size Income Statement
Quarterly Data

Williams-Sonoma Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Apr 28, 2024 Jan 28, 2024 Oct 29, 2023 Jul 30, 2023 Apr 30, 2023 Jan 29, 2023 Oct 30, 2022 Jul 31, 2022 May 1, 2022 Jan 30, 2022 Oct 31, 2021 Aug 1, 2021 May 2, 2021 Jan 31, 2021 Nov 1, 2020 Aug 2, 2020 May 3, 2020 Feb 2, 2020 Nov 3, 2019 Aug 4, 2019 May 5, 2019 Feb 3, 2019 Oct 28, 2018 Jul 29, 2018 Apr 29, 2018
Net revenues 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -51.67 -53.99 -55.64 -59.33 -61.54 -58.83 -58.47 -56.55 -56.19 -55.01 -56.27 -55.94 -56.96 -57.90 -60.01 -63.03 -66.46 -62.43 -64.08 -64.70 -64.20 -61.34 -63.52 -63.62 -64.08
Gross profit 48.33% 46.01% 44.36% 40.67% 38.46% 41.17% 41.53% 43.45% 43.81% 44.99% 43.73% 44.06% 43.04% 42.10% 39.99% 36.97% 33.54% 37.57% 35.92% 35.30% 35.80% 38.66% 36.48% 36.38% 35.92%
Selling, general and administrative expenses -28.83 -25.91 -27.37 -26.09 -27.09 -22.02 -26.04 -26.35 -26.71 -24.02 -27.60 -27.47 -27.31 -24.56 -24.42 -24.54 -29.60 -26.53 -28.86 -29.01 -29.83 -27.72 -29.52 -30.57 -30.39
Operating income 19.50% 20.10% 17.00% 14.58% 11.36% 19.15% 15.49% 17.10% 17.10% 20.97% 16.13% 16.58% 15.73% 17.54% 15.56% 12.43% 3.94% 11.05% 7.06% 6.29% 5.97% 10.94% 6.96% 5.82% 5.53%
Interest income (expense), net 0.97 0.58 0.39 0.18 0.31 0.06 0.02 0.02 0.01 0.00 -0.01 0.00 -0.11 -0.10 -0.30 -0.43 -0.17 -0.07 -0.18 -0.19 -0.18 -0.09 -0.17 -0.12 -0.10
Earnings before income taxes 20.47% 20.68% 17.39% 14.76% 11.68% 19.21% 15.51% 17.12% 17.11% 20.98% 16.12% 16.59% 15.63% 17.44% 15.26% 12.00% 3.76% 10.97% 6.89% 6.09% 5.79% 10.85% 6.79% 5.69% 5.43%
Income taxes -4.47 -5.13 -4.58 -3.94 -2.76 -4.74 -4.03 -4.62 -3.68 -4.87 -3.94 -3.96 -2.60 -3.96 -3.82 -2.97 -0.90 -1.97 -1.71 -1.52 -1.55 -2.39 -0.78 -1.64 -1.68
Net earnings 16.00% 15.55% 12.80% 10.82% 8.92% 14.47% 11.48% 12.49% 13.44% 16.11% 12.19% 12.63% 13.02% 13.48% 11.43% 9.03% 2.87% 9.01% 5.18% 4.57% 4.24% 8.46% 6.00% 4.06% 3.75%

Based on: 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-K (reporting date: 2019-02-03), 10-Q (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29).

An analysis of the common-size income statement reveals a substantial and consistent expansion in profitability margins from April 2018 through April 2024. The most prominent trend is the steady increase in the conversion of net revenues into net earnings, indicating significant improvements in operational efficiency and cost management.

Gross Profitability and Cost Management
A significant downward trend in the cost of goods sold is observed, decreasing from 64.08% of net revenues in April 2018 to 51.67% by April 2024. This reduction in direct costs has directly fueled a corresponding increase in gross profit margins, which rose from 35.92% to 48.33% over the analyzed period. The most aggressive expansion in gross margin occurred between November 2020 and January 2022, where margins shifted from approximately 40% to nearly 45%.
Operating Efficiency
Selling, general, and administrative (SG&A) expenses remained relatively stable but showed a general trend of optimization. These expenses transitioned from roughly 30% of revenues in 2018 to fluctuate between 22% and 28% in later years. The combination of expanding gross margins and disciplined SG&A spending resulted in a dramatic increase in operating income, which climbed from a baseline of 5.53% in early 2018 to 19.50% by April 2024.
Financial Position and Interest Trends
A notable shift is observed in net interest items. For the first several years of the period, interest was a net expense, consistently detracting from revenues. However, starting around May 2022, interest transitioned into a net income stream, reaching 0.97% of net revenues by April 2024. This suggests a strengthening of the cash position or a significant reduction in interest-bearing debt.
Net Earnings Performance
The bottom-line net earnings margin demonstrates a strong long-term growth trajectory. Net earnings as a percentage of revenue increased from 3.75% in April 2018 to 16.00% in April 2024. While some quarterly volatility occurred—most notably a dip to 2.87% in May 2020—the recovery was rapid, with the company establishing a higher floor for profitability in the post-2021 period.

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