Williams-Sonoma, Inc. (WSM) acquired the intellectual property of Dormify, an online retailer focused on home solutions for college students and young adults. The company plans to bring Dormify back to the market in 2026 through a relaunch.WSM stock inched down 1.4% during yesterday’s trading hours.WSM Enhances Market Presence With DormifyThe acquisition of Dormify’s intellectual property is in line with WSM’s focus on building and acquiring brands for different life stages and styles. The strategic move su ...

Financial Performance - Net revenues for the first quarter of fiscal 2025 increased by $69.8 million or 4.2%, with comparable brand revenue growth of 3.4%[81] - Diluted earnings per share for the first quarter of fiscal 2025 was $1.85, a decrease from $1.99 in the same quarter of fiscal 2024[85] - Gross profit for the first quarter of fiscal 2025 was $765.8 million, representing 44.3% of net revenues, down from 47.9% in the first quarter of fiscal 2024[96] - Gross profit decreased by $29.4 million, or 3.7%, with gross margin declining to 44.3% from 47.9% year-over-year[97] - Selling, general and administrative expenses (SG&A) decreased by $3.0 million, or 0.6%, with SG&A as a percentage of net revenues decreasing to 27.5% from 28.8%[100] - The effective tax rate increased to 23.0% from 21.8% year-over-year, primarily due to lower excess tax benefits from stock-based compensation[101] - Net cash provided by operating activities was $118.9 million, down from $226.8 million in the first quarter of fiscal 2024[115] Brand Performance - Pottery Barn, the largest brand, achieved comparable brand revenue growth of 2.0%, while Pottery Barn Kids and Teen brands saw growth of 3.8%[82] - The Williams Sonoma brand experienced a significant growth of 7.3% in comparable brand revenue, driven by strong performance in kitchen and home categories[84] - Emerging brands, including Rejuvenation, Mark and Graham, and GreenRow, delivered double-digit brand comp growth on a combined basis[84] Cash and Investments - As of May 4, 2025, the company had $1.0 billion in cash and cash equivalents and generated operating cash flow of $118.9 million[86] - The company invested $58.3 million in capital expenditures and returned $164.6 million to shareholders through stock repurchases and dividends in the first quarter of fiscal 2025[86] - Net cash used in investing activities increased to $58.2 million from $39.5 million, mainly due to technology and supply chain enhancements[116] - Net cash used in financing activities rose to $230.0 million from $193.7 million, driven by increased stock repurchases and dividend payments[117] - As of May 4, 2025, the company held $1.0 billion in cash and cash equivalents, with $96.1 million held by international subsidiaries[110] - The company has a $500 million unsecured revolving credit facility, with the option to increase it by up to $250 million[111] Operational Strategy - The company plans to focus on returning to growth, enhancing customer service, and driving earnings amid a challenging macroeconomic environment[88] - The company plans to use cash resources for inventory purchases, employment-related costs, advertising, and capital expenditures for the remainder of fiscal 2025[108] - The total store count decreased to 508 as of May 4, 2025, with 3 openings and 7 closures during the quarter[93] - The company experienced varying levels of inflation impacting costs, but its operating model helped mitigate these increased costs[125]

Core Viewpoint - Williams-Sonoma, Inc. reported strong first-quarter results, exceeding revenue and earnings expectations, but analysts have mixed views on future performance due to tariff-related cost pressures and margin concerns [1][4][5]. Financial Performance - The company reported revenue of $1.73 billion, a 4.2% increase year-over-year, surpassing Wall Street's estimate of $1.67 billion [1]. - GAAP earnings per share (EPS) were $1.85, beating the analyst consensus estimate of $1.77 [1]. - First-quarter comparable sales and operating margins outperformed expectations, but there was a significant headwind in merchandising gross margin of approximately 220 basis points [4]. Future Outlook - Williams-Sonoma maintains its fiscal 2025 guidance, projecting net revenue to range between -1.5% and +1.5%, with comparable sales flat to up 3.0% [2][3]. - Analysts have adjusted their EPS forecasts for 2025 and 2026, with estimates now at $8.33 and $9.10, respectively [5][7]. - The company is viewed positively for long-term growth potential, driven by market share gains and a strong balance sheet, with some analysts suggesting over 50% upside in shares over the next two to three years [6]. Analyst Ratings and Price Forecasts - RBC Capital Markets analyst Steven Shemesh lowered the price forecast to $182 from $189 while maintaining an Outperform rating [3]. - KeyBanc analyst Bradley B. Thomas reiterated an Overweight rating with a price forecast of $181, citing solid first-quarter results despite industry challenges [5]. - Telsey Advisory analyst Cristina Fernández maintained an Outperform rating with a price forecast of $215 [7]. Market Trends - All brands under Williams-Sonoma posted positive year-over-year comparable sales for the first time since Q2 2022, indicating improved multi-year comp trends [9]. - The return to positive furniture comps is noted as significant, despite concerns over gross margin performance [8].

Williams-Sonoma NYSE: WSM is fundamentally a good buy because of its operational quality, fortress balance sheet, cash flow, and ability to sustain value-building capital returns. It is on sale in Q2 2025 because the guidance update provides no catalyst for a rally. The guidance was reaffirmed to include an outlook for growth, solid margin, and the ability to sustain value-building capital returns, including the dividend and share repurchases. Williams-Sonoma TodayWSMWilliams-Sonoma$159.89 -0.50 (-0.31%) 5 ...

Williams-Sonoma CEO Laura Alber told CNBC's Jim Cramer how the company is dealing with the effects of President Donald Trump's tariff hikes."We've been busy," she said. "And we've also been reminded, you know, it's important to have that flexible mindset, but also to have options in sourcing, and particularly with our big programs, to have...different alternatives."The home goods and furniture outfit owns several retail brands alongside its namesake, including Pottery Barn and West Elm. It posted quarterly ...

Williams-Sonoma Inc. (WSM) reported results for first-quarter fiscal 2025 (ended May 4), with earnings and net revenues beating the Zacks Consensus Estimate. The top line increased on a year-over-year basis. The company saw positive comparable sales, supported by stable profitability.Following the earnings release, shares of this multi-channel specialty retailer of premium quality home products moved down 5.8% in today’s pre-market trading session.Going forward, the company remains focused on product develo ...

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Image source: The Motley Fool.Thursday, May 22, 2025 at 10 a.m. ETCALL PARTICIPANTSPresident & Chief Executive Officer — Laura AlberExecutive Vice President & Chief Financial Officer — Jeff HowieNeed a quote from one of our analysts? Email [email protected]TAKEAWAYSComparable Brand Revenue: Comparable brand revenue increased 3.4% in Q1 FY2025, with all brands achieving positive comps with furniture comps turning positive for the first time since Q4 FY2022. Operating Margin: Operating margin reached 16.8% in ...

Group 1: Earnings Performance - Williams-Sonoma reported quarterly earnings of $1.85 per share, exceeding the Zacks Consensus Estimate of $1.76 per share, but down from $2.04 per share a year ago, representing an earnings surprise of 5.11% [1] - The company posted revenues of $1.73 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 3.73% and up from $1.66 billion year-over-year [2] Group 2: Stock Performance and Outlook - Williams-Sonoma shares have declined approximately 9.3% since the beginning of the year, contrasting with the S&P 500's decline of -0.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.79 on revenues of $1.8 billion, and for the current fiscal year, it is $8.46 on revenues of $7.68 billion [7] Group 3: Industry Context - The Retail - Home Furnishings industry, to which Williams-Sonoma belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Williams-Sonoma (WSM) Q1 2026 Earnings Call May 22, 2025 10:00 AM ET Company Participants Jeremy Brooks - Senior VP, Chief Accounting Officer & Head of IRLaura Alber - President, CEO & DirectorJeff Howie - Executive VP & CFOMax Rakhlenko - Managing DirectorJonathan Matuszewski - Senior Vice PresidentSimeon Gutman - Managing DirectorEmily Ghosh - Equity Research Associate Conference Call Participants Bradley Thomas - Managing Director & Equity Research AnalystPeter Benedict - Senior Research AnalystCristina ...