Operating Profit Margin
since 2005
Calculation
Williams-Sonoma Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Net revenues1 | |
|---|---|---|---|---|---|---|---|
| Jan 28, 2024 | 16.05% | = | 100 | × | 1,244,193) | ÷ | 7,750,652) |
| Jan 29, 2023 | 17.27% | = | 100 | × | 1,498,422) | ÷ | 8,674,417) |
| Jan 30, 2022 | 17.62% | = | 100 | × | 1,453,116) | ÷ | 8,245,936) |
| Jan 31, 2021 | 13.43% | = | 100 | × | 910,697) | ÷ | 6,783,189) |
| Feb 2, 2020 | 7.90% | = | 100 | × | 465,874) | ÷ | 5,898,008) |
| Feb 3, 2019 | 7.69% | = | 100 | × | 435,953) | ÷ | 5,671,593) |
| Jan 28, 2018 | 8.57% | = | 100 | × | 453,811) | ÷ | 5,292,359) |
| Jan 29, 2017 | 9.30% | = | 100 | × | 472,599) | ÷ | 5,083,812) |
| Jan 31, 2016 | 9.82% | = | 100 | × | 488,634) | ÷ | 4,976,090) |
| Feb 1, 2015 | 10.69% | = | 100 | × | 502,265) | ÷ | 4,698,719) |
| Feb 2, 2014 | 10.30% | = | 100 | × | 452,098) | ÷ | 4,387,889) |
| Feb 3, 2013 | 10.12% | = | 100 | × | 409,163) | ÷ | 4,042,870) |
| Jan 29, 2012 | 10.26% | = | 100 | × | 381,732) | ÷ | 3,720,895) |
| Jan 30, 2011 | 9.23% | = | 100 | × | 323,414) | ÷ | 3,504,158) |
| Jan 31, 2010 | 3.91% | = | 100 | × | 121,442) | ÷ | 3,102,704) |
| Feb 1, 2009 | 0.00% | = | 100 | × | —) | ÷ | 3,361,472) |
| Feb 3, 2008 | 0.00% | = | 100 | × | —) | ÷ | 3,944,934) |
| Jan 28, 2007 | 0.00% | = | 100 | × | —) | ÷ | 3,727,513) |
| Jan 29, 2006 | 0.00% | = | 100 | × | —) | ÷ | 3,538,947) |
| Jan 30, 2005 | 0.00% | = | 100 | × | —) | ÷ | 3,136,931) |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-02-01), 10-K (reporting date: 2014-02-02), 10-K (reporting date: 2013-02-03), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-02-01), 10-K (reporting date: 2008-02-03), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).
1 US$ in thousands
Analysis of the operating profit margin reveals three distinct performance cycles: an initial recovery and stabilization phase, a period of gradual margin compression, and a subsequent phase of significant profitability expansion followed by slight normalization.
- Recovery and Stabilization (2010–2015)
- A sharp increase in profitability is observed starting in 2010, where the operating profit margin rose from 3.91% to 9.23% within one year. This upward trajectory continued steadily, peaking at 10.69% in 2015. During this period, operating income grew from $121.4 million to $502.3 million, indicating a successful scaling of operations relative to revenue growth.
- Margin Compression (2016–2020)
- A consistent downward trend in operating margins is evident from 2016 to 2019, falling from 9.82% to a period low of 7.69%. Although net revenues continued to increase from approximately $4.98 billion in 2016 to $5.67 billion in 2019, operating income failed to keep pace, remaining relatively stagnant between $435 million and $488 million. A slight stabilization occurred in 2020, with the margin edging up to 7.90%.
- Profitability Expansion and Recent Trends (2021–2024)
- A significant inflection point occurred in 2021, with the operating profit margin jumping to 13.43% and reaching a peak of 17.62% in 2022. This expansion was driven by a substantial increase in both net revenues and operating income, with the latter rising from $465.9 million in 2020 to a peak of $1.498 billion in 2023. A slight contraction is noted in the final year of the sequence, as the operating profit margin decreased to 16.05% in 2024, coinciding with a reduction in net revenues to $7.75 billion.
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Comparison to Competitors
Williams-Sonoma Inc., operating profit margin, long-term trends, comparison to competitors
| Williams-Sonoma Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | |
|---|---|---|---|---|
| Jan 28, 2024 | 16.05% | 10.75% | 14.21% | 13.38% |
| Jan 29, 2023 | 17.27% | 6.41% | 15.27% | 10.47% |
| Jan 30, 2022 | 17.62% | 2.38% | 15.24% | 12.56% |
| Jan 31, 2021 | 13.43% | 5.30% | 13.84% | 10.77% |
| Feb 2, 2020 | 7.90% | 5.93% | 14.37% | 8.75% |
| Feb 3, 2019 | 7.69% | 5.18% | 14.35% | 5.63% |
| Jan 28, 2018 | 8.57% | 5.33% | 14.55% | 9.60% |
| Jan 29, 2017 | 9.30% | 2.31% | 14.19% | 8.99% |
| Jan 31, 2016 | 9.82% | 3.08% | 13.30% | 8.41% |
| Feb 1, 2015 | 10.69% | 2.09% | 12.59% | 8.52% |
| Feb 2, 2014 | 10.30% | 0.20% | 11.63% | 0.00% |
| Feb 3, 2013 | 10.12% | 1.00% | 10.39% | 0.00% |
| Jan 29, 2012 | 10.26% | 1.11% | 9.46% | 0.00% |
| Jan 30, 2011 | 9.23% | 1.79% | 8.59% | 0.00% |
| Jan 31, 2010 | 3.91% | 4.11% | 7.26% | 0.00% |
| Feb 1, 2009 | 0.00% | 4.61% | 6.11% | 0.00% |
| Feb 3, 2008 | 0.00% | 4.39% | 9.36% | 0.00% |
| Jan 28, 2007 | 0.00% | 4.42% | 10.65% | 0.00% |
| Jan 29, 2006 | 0.00% | 3.63% | 11.49% | 0.00% |
| Jan 30, 2005 | 0.00% | 5.09% | 10.84% | 0.00% |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-02-01), 10-K (reporting date: 2014-02-02), 10-K (reporting date: 2013-02-03), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-02-01), 10-K (reporting date: 2008-02-03), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).