Williams-Sonoma Inc (WSM)
Operating profit margin
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,430,180 | 1,244,190 | 1,244,190 | 1,498,420 | 1,498,420 |
| Revenue | US$ in thousands | 7,711,540 | 7,750,650 | 7,750,650 | 8,674,420 | 8,674,420 |
| Operating profit margin | 18.55% | 16.05% | 16.05% | 17.27% | 17.27% |
January 31, 2025 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,430,180K ÷ $7,711,540K
= 18.55%
Williams-Sonoma Inc's operating profit margin has shown relatively stable performance in recent years. It stood at 17.27% for both January 29, 2023, and January 31, 2023, before slightly decreasing to 16.05% for January 28, 2024, and maintaining the same level for January 31, 2024. However, there was an improvement in the operating profit margin for January 31, 2025, reaching 18.55%.
Overall, the operating profit margin indicates the company's ability to generate profits from its core operations after accounting for variable costs. The fluctuations in the margin over the years can be attributed to changes in revenue, cost management strategies, or economic conditions impacting the retail industry. It is essential for Williams-Sonoma Inc to continue monitoring and managing its operating profit margin to ensure sustainable and profitable operations in the long term.