Financial Data and Key Metrics Changes - In Q1 2025, the company reported net revenues of $1.73 billion, achieving a positive comp of 3.4%, exceeding expectations [38] - Operating margin was 16.8%, with earnings per share (EPS) of $1.85, reflecting an earnings growth of 8.8% [6][42] - Gross margin was 44.3%, which was 360 basis points lower than the previous year when accounting for a $49 million out of period adjustment [39] Business Line Data and Key Metrics Changes - Pottery Barn achieved a positive comp of 2% in Q1, with a five-year comp of 46.7% [17] - The Williams Sonoma brand reported a strong quarter with a positive comp of 7.3% and a five-year comp of 36.9% [23] - The B2B program grew by 8%, marking another record-breaking quarter [9] Market Data and Key Metrics Changes - The home furnishings industry contracted approximately 3% in Q1, while the company gained market share [38] - Retail channel comps were up 6.2%, and e-commerce comps increased by 2.1% [38] Company Strategy and Development Direction - The company is focused on three key priorities: returning to growth, elevating customer service, and driving earnings [7][13] - A strong pipeline of new products and strategic collaborations are emphasized to drive brand growth [8] - The company is actively managing tariff impacts through a six-point plan, including cost concessions from vendors and sourcing goods from lower tariff countries [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and is optimistic about gaining market share in 2025 [13][52] - The company is committed to enhancing customer experiences and operational efficiencies, with a focus on AI integration across digital platforms [10][12] Other Important Information - The company plans to spend between $250 million and $275 million in capital expenditures for fiscal year 2025, prioritizing e-commerce and supply chain efficiency [50] - The quarterly dividend was increased by 16% year-over-year, marking the sixteenth consecutive year of increased payouts [51] Q&A Session Summary Question: Merchandise margins decline - Management clarified that merchandise margins were impacted by higher input costs but offset by supply chain efficiencies and occupancy leverage [58][60] Question: Pricing strategy regarding tariffs - The company emphasized a reduced promotional strategy and a focus on value beyond just price, leveraging direct vendor relationships for better pricing [64][66] Question: Inventory position and its impact on sales - The inventory was strategically increased by 10% to mitigate tariff impacts, with a focus on being in stock to drive sales [86][90] Question: Demand trends throughout the quarter - Management noted strong results across all brands, with furniture achieving positive comps for the first time in nine quarters [77][105] Question: Reducing exposure to China - The company has proactively reduced sourcing from China and is flexible in adjusting sourcing strategies based on the trade environment [81] Question: Tariff mitigation costs - Management explained that tariff mitigation costs were short-term expenses, with expectations of future benefits from proactive inventory management [99][101]

Financial Performance - Q1 comparable brand revenue increased by 3.4%, with net revenues of $1.73 billion compared to $1.66 billion in Q1 2024[1][16] - Operating margin for Q1 was 16.8%, down 230 basis points year-over-year, while diluted EPS was $1.85, reflecting a 7.0% decrease from the previous year[3][4] - Gross margin decreased to 44.3%, a decline of 360 basis points year-over-year, primarily due to lower merchandise margins and a prior year benefit from freight adjustments[4][16] - Net earnings for the thirteen weeks ended May 4, 2025, were $231,263 thousand, a decrease of 11.2% compared to $260,416 thousand for the same period in 2024[22] - Net cash provided by operating activities was $118,949 thousand, a significant decrease of 47.5% from $226,788 thousand in the same period last year[22] Inventory and Merchandise - Merchandise inventories rose by 10.3% year-over-year to $1.3 billion, as the company strategically pulled forward receipts to mitigate potential tariff impacts[4] - Merchandise inventories increased slightly to $1,335,356 thousand as of May 4, 2025, compared to $1,332,429 thousand as of February 2, 2025, reflecting a marginal increase of 0.2%[19] Shareholder Returns - The company maintained a strong liquidity position with $1.0 billion in cash and $119 million in operating cash flow, returning $165 million to shareholders through stock repurchases and dividends[4] - The company has $1.1 billion remaining under its stock repurchase authorization, indicating ongoing commitment to returning value to shareholders[4] - The company repurchased $89,971 thousand of common stock during the period, compared to $43,781 thousand in the previous year, indicating a significant increase in stock buybacks[22] Future Outlook - For fiscal 2025, the company expects annual net revenues to range from -1.5% to +1.5%, with comparable sales growth projected between flat to +3.0%[9] - The company reiterated its long-term guidance of mid-to-high single-digit annual net revenue growth and operating margins in the mid-to-high teens[9] - The company is focused on product innovation and customer service amidst macroeconomic uncertainties, expressing optimism for 2025[4] Asset and Liability Management - Total assets decreased to $5,157,315 thousand as of May 4, 2025, down from $5,301,607 thousand as of February 2, 2025, representing a decline of approximately 2.7%[19] - Cash and cash equivalents decreased to $1,047,181 thousand from $1,212,977 thousand at the beginning of the period, reflecting a decrease of 13.6%[22] - Total current liabilities decreased to $1,721,843 thousand as of May 4, 2025, down from $1,911,974 thousand as of February 2, 2025, a reduction of approximately 9.9%[19] - The company reported a decrease in accounts payable to $553,655 thousand as of May 4, 2025, down from $645,667 thousand as of February 2, 2025, a decline of approximately 14.2%[22] Retail Operations - The number of retail stores decreased to 508 as of May 4, 2025, down from 512 at the beginning of the quarter, indicating a net closure of 4 stores[20] - All brands reported positive comparable sales trends in Q1, with Williams Sonoma brand showing a 7.3% increase[3][16]

Williams-Sonoma, Inc. (WSM) is scheduled to release first-quarter fiscal 2025 results on May 22, before market open.In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 12.7% and increased 20.6% year over year. Revenues of this multi-channel specialty retailer of premium-quality home products beat the consensus mark by 5.4% and increased 8% year over year.Williams-Sonoma reported better-than-expected earnings in each of the last four quarters, the average surprise being ...

This company is a standout performer with a long track record of growth. The S&P 500 is widely regarded as the best overall gauge of the U.S. stock market, as it comprises the 500 largest publicly traded companies in the country. Given the breadth of businesses that make up the index, it is considered the most reliable benchmark of overall stock market performance. To be considered for admission to the S&P 500, a company must meet the following criteria: Williams-Sonoma (WSM 0.08%) is one of the most recent ...

Williams-Sonoma (WSM) closed at $171.67 in the latest trading session, marking a +0.03% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.41%. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq lost 0.18%.Heading into today, shares of the seller of cookware and home furnishings had gained 24.71% over the past month, outpacing the Retail-Wholesale sector's gain of 9.47% and the S&P 500's gain of 9% in that time.The upcoming earnings release of Williams-Sonom ...

Company Performance - Williams-Sonoma (WSM) closed at $160.31, reflecting a -0.36% change from the previous day, which is less than the S&P 500's daily loss of 0.07% [1] - The stock has increased by 8.79% over the past month, underperforming compared to the Retail-Wholesale sector's gain of 14% and the S&P 500's gain of 13.74% [1] Upcoming Earnings - The upcoming earnings disclosure is anticipated to show an EPS of $1.76, representing a 13.73% decline year-over-year [2] - Revenue is expected to be $1.67 billion, indicating a 0.56% increase compared to the same quarter last year [2] Full-Year Estimates - Zacks Consensus Estimates project full-year earnings of $8.49 per share and revenue of $7.69 billion, reflecting year-over-year changes of -3.41% and -0.34%, respectively [3] - Recent changes to analyst estimates are crucial as they indicate near-term business trends and analyst sentiment regarding the company's profitability [3] Zacks Rank and Valuation - The Zacks Rank system currently rates Williams-Sonoma at 3 (Hold), with a recent 0.3% decrease in the EPS estimate over the past month [5] - The company has a Forward P/E ratio of 18.95, which aligns with the industry's average [6] - Williams-Sonoma's PEG ratio stands at 2.61, compared to the Retail - Home Furnishings industry's average PEG ratio of 2.25 [6] Industry Context - The Retail - Home Furnishings industry ranks in the bottom 18% of all industries, with a current Zacks Industry Rank of 203 [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Williams-Sonoma (WSM) shares rallied 13.7% in the last trading session to close at $158.25. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20.4% loss over the past four weeks.Following President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, Williams-Sonoma shares soared, reflecting renewed investor optimism.This seller of cookware and home furnishings is expected to post quarter ...

Telsey Advisory Group analyst Cristina Fernández shared key points from a meeting with Williams-Sonoma, Inc. WSM CFO Jeff Howie and Chief Accounting Officer & Head of IR Jeremy Brooks this week.The analyst writes that the company emphasized its strengths, including an $8 billion revenue scale, a strong balance sheet with $1.2 billion in cash and no debt, and supply chain expertise while acknowledging potential tariff headwinds announced by the Trump administration.Read: Mark Cuban Warns Of Price Hikes, Says ...

According to data compiled by S&P Global Market Intelligence, Williams-Sonoma (WSM -15.78%) shares were weakening considerably -- as of early morning Friday they were down nearly 13% week to date. As pointed out by an analyst tracking the company, it's very exposed to the risk posed by the tariffs freshly enacted by the U.S. government.Delaying that coffee machine purchaseWilliams-Sonoma is a storied home furnishings and kitchen goods retailer that, like many of its peers, relies significantly on imports fo ...

Operations and Supply Chain - The company operates manufacturing facilities in North Carolina, Oregon, and Mississippi, facing risks such as tariffs and labor costs that may disrupt supply chain operations[33]. - The company relies on foreign suppliers for timely sourcing of merchandise, which may impact operations and financial results if suppliers fail to meet quality control standards[58]. - The company is dependent on third-party carriers for merchandise delivery, facing risks from labor disputes, fuel cost fluctuations, and other disruptions that could affect fulfillment[68][69]. - The company is exposed to foreign currency exchange rate risks, particularly in operations outside the U.S., which could materially impact financial results[126]. - The company faces various risks related to global operations, including compliance with local laws and potential reputational harm from negative online feedback[129]. - The company is subject to risks that could limit suppliers' ability to provide quality merchandise, including raw material availability and labor disputes, which could adversely affect operations[123]. - Failure of suppliers to adhere to quality control standards may lead to product recalls, damaging the company's reputation and increasing costs[124]. - The company may struggle to acquire merchandise in sufficient quantities at acceptable prices, impacting inventory levels and sales[121]. Workforce and Culture - The company has approximately 19,600 employees, including full-time, part-time, and seasonal associates, with no collective bargaining agreements in place[38]. - The company emphasizes a "People First" culture, focusing on competitive rewards and associate well-being as vital to success[36]. - The company has a transparent process for career advancement, conducting annual reviews to maintain a strong talent pipeline[41]. - The company offers a comprehensive benefits package, including health insurance, 401(k) matching, and wellness programs[43]. - The company may face challenges in attracting and retaining key personnel, which is critical for executing its business strategy[99]. - The company faces increasing labor costs and potential legal challenges related to employment practices, particularly in California[147]. Financial Performance and Risks - The company experiences significant seasonal variations, with peak selling season from October to January, impacting net revenues and earnings[35]. - The company faces risks related to consumer spending, competition, and supply chain disruptions that could materially affect its financial condition[55]. - The company has historically repurchased shares and paid quarterly dividends, which may be affected by cash flow generation and operational needs[154]. - The company's ability to meet public guidance and investor expectations is critical, as failure to do so may lead to a decline in stock price[151]. - The company is primarily self-insured for various risks, including employment practices liability and product recalls, which could lead to financial strain if substantial losses occur[150]. - The company may incur higher operating costs if unable to manage employment and occupancy expenses effectively, particularly during economic uncertainty[144]. - The company has a total of $750 million in unsecured revolving lines of credit, but future funding may not be available on acceptable terms[142]. - Disruptions in financial markets could adversely affect liquidity and capital resources, impacting the company's operations[143]. Competition and Market Dynamics - The company is subject to substantial competition in the specialty e-commerce and retail sectors, competing on brand authority and product quality[34]. - Increased competition in the specialty e-commerce and retail sectors could reduce sales and harm operating results[74][75]. - The business-to-business division is exposed to risks from changes in customers' discretionary spending and budget cycles, which could reduce demand for services[62]. - The company must continually adapt to changing consumer preferences and buying trends in e-commerce, including mobile usage[84]. - The company is vulnerable to risks associated with digital advertising, including competition and fluctuating customer responses[89]. Sustainability and Compliance - The company has been recognized for sustainability efforts, being included in Barron's 100 Most Sustainable U.S. Companies for 2025 for the 8th consecutive year[46]. - The company's sustainability initiatives expose it to operational, reputational, and financial risks, which could negatively impact stock price and results of operations[79]. - The company faces risks related to the availability and cost of renewable energy sources and technologies, which could impact sustainability goals[81]. - The company aims to shift its raw materials to lower emission options, which may face availability and price volatility risks[120]. - Compliance with evolving corporate governance and public disclosure regulations has resulted in increased general and administrative expenses[83]. - The company is subject to complex and evolving data privacy regulations, including GDPR and CPRA, which may impose substantial compliance costs and operational changes[106]. - Any failure to comply with data privacy obligations could result in significant financial penalties and damage to the company's reputation[110]. Cybersecurity and Data Risks - The company is exposed to cybersecurity risks and costs associated with credit card fraud, identity theft, and business interruption, which could lead to unexpected expenses and loss of revenue[58]. - Cybersecurity risks remain a significant concern, with potential impacts on revenue and unexpected expenses due to credit card fraud and identity theft[104]. - The company is currently facing an increase in lawsuits related to consumer protection and data breaches, which could lead to costly litigation and resource diversion[102]. Financial Reporting and Internal Controls - Failure to maintain effective internal controls could impair the accuracy and timeliness of financial statements, potentially harming investor confidence[58]. - Changes in accounting rules or regulations may adversely affect the company's future operating results and financial reporting[156]. - The company makes significant assumptions and estimates in its financial statements, which, if inaccurate, could materially impact financial results[157]. - Impairment charges related to long-lived assets have been significant in the past and may continue to adversely affect operating results[158]. Brand and Market Expansion - The company owns approximately 210 unique trademarks and 370 patents, highlighting the importance of intellectual property to its business[47]. - In 2023, the company launched a new brand, GreenRow, as part of its global expansion strategy[101]. - The company plans to expand globally by operating e-commerce websites and opening new stores outside the U.S., but faces challenges in understanding foreign consumer preferences and managing logistics[125]. - Franchise operations are being expanded, but their success depends on demand in new markets and franchisees' adherence to brand standards[127].