Williams-Sonoma Inc

WSM

Equity

ISIN null / Valor 986550

New York Stock Exchange, Inc (2025-10-20)

USD 189.83+2.41%

Williams-Sonoma Inc
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About company

Williams-Sonoma, Inc. stands as a prominent figure in the retail sector, particularly noted for its substantial presence in the e-commerce landscape within the home furnishings niche. The company boasts a portfolio of highly recognized and cherished brands, catering to a diverse clientele across the globe. With a strategic retail footprint that extends beyond the United States to include Canada, Puerto Rico, Australia, and the United Kingdom, Williams-Sonoma, Inc. has established a robust international presence. Additionally, the company has expanded its reach through franchising agreements in various countries across the Middle East, the Philippines, and Mexico, further solidifying its position in the global market. Customers worldwide have the convenience of accessing its wide range of products not only through physical retail outlets but also via catalogs and an online platform, ensuring a comprehensive and accessible shopping experience.

Summarized from source with an LLMView SourceSector: Consumer Services

Revenue Growth

The first quarter of 2025 saw Williams-Sonoma Inc. achieve a 3.4% increase in comparable brand revenue, surpassing expectations and continuing the positive trend from the previous quarter. All brands contributed to the revenue growth, reflecting a strong top-line performance.

Profitability Metrics

Williams-Sonoma Inc. reported an operating margin of 16.8%, outperforming profitability estimates. Diluted earnings per share reached $1.85, marking an 8.8% growth compared to the first quarter of 2024. These results demonstrate the company's effective cost management and operational efficiency.

Gross Margin and Expenses

The gross margin stood at 44.3%, adjusted for a prior year freight adjustment. Without this adjustment, the margin decreased by 60 basis points compared to last year, driven by lower merchandise margins partially offset by supply chain efficiencies and occupancy leverage. Additionally, the SG&A rate improved to 27.5%, a 130 basis point reduction from the previous year, due to lower advertising expenses and employment leverage.

Inventory and Liquidity

Merchandise inventories increased by 10.3% year-over-year to $1.3 billion, attributed to strategic receipt pull-forwards to mitigate the impact of higher tariffs in fiscal 2025. The company maintains a strong liquidity position with $1.0 billion in cash and $119 million in operating cash flow, enabling continued returns to shareholders.

Outlook and Guidance

Williams-Sonoma Inc. has reiterated its full-year 2025 guidance, anticipating annual net revenue growth between -1.5% to +1.5% and operating margins in the range of 17.4% to 17.8%. The company remains optimistic about its long-term prospects, focusing on product innovation and customer service despite existing tariff challenges.

Summarized from source with an LLMView Source

Key figures

31.8%1Y

234%3Y

269%5Y

Performance

49.2%1Y

72.9%3Y

64.1%5Y

Volatility