WCAUTIOUS

W Gross Margin Analysis

30.0%

Higher than 42% of Consumer Cyclical sector peers

Updated 129h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of each sales dollar left after paying direct production costs, so a 30.0% margin means Wayfair keeps $0.30 of every $1 of revenue before other expenses.

Sector Performance

42th percentile

30.0%

Sector Median

34.2%

Sector Avg

27.7%

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Deep Analysis

Gross margin is the share of each sales dollar left after paying direct production costs, so a 30.0% margin means Wayfair keeps $0.30 of every $1 of revenue before other expenses.

That level sits below the Consumer Cyclical sector median of 33.9%, placing the company at the 43rd percentile among its peers. The trend cannot be assessed because the year-over-year change and quarter-over-quarter change are both N/A, and no historical values beyond the current 30.0% are available. With a margin slightly below average and no trend data to show improvement or deterioration, the investment picture carries more uncertainty than a clear opportunity. This metric supports the overall CAUTIOUS verdict: the company is underperforming the typical peer on profitability, and the absence of trend information limits confidence in its direction.

Frequently Asked Questions

What does the Gross Margin tell investors about W?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does W's Gross Margin compare to its sector?

W's Gross Margin of 30.0% compares to a Consumer Cyclical sector median of 34.2%, placing it in the 42th percentile.

Who are W's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: QSR (33.7%), CHWY (30.1%), JACK (29.9%), ROST (29.6%), CAVA (25.4%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.