Financial Performance - Q3 comparable brand revenue increased by 4.0%, with an operating margin of 17.0% and diluted EPS of $1.96, reflecting a 4.8% year-over-year growth [2] - The company raised its full-year operating margin guidance to a range of 17.8% to 18.1% [12] - Gross margin improved to 46.1%, up 70 basis points year-over-year, driven by higher merchandise margins and supply chain efficiencies [6] - Q3 2025 net revenues reached $1,882,814, a 4.0% increase from Q3 2024's $1,800,668 [20] - Net earnings for the thirty-nine weeks ended November 2, 2025, were $720,417, slightly up from $714,533 in the same period last year [27] Expenses and Liabilities - Selling, general and administrative (SG&A) expenses increased by 7.0% year-over-year to $549 million, with an SG&A rate of 29.1% [6] - Total liabilities increased to $3,243,423 from $3,159,188 in the previous quarter [23] - Operating lease liabilities decreased to $220,239 from $234,180 in the previous quarter [23] Inventory and Cash Flow - Merchandise inventories rose by 9.6% year-over-year to $1.5 billion, influenced by incremental tariff costs and strategic pull forward of receipts [6] - Merchandise inventories rose to $1,530,896 from $1,332,429 in the previous quarter [23] - Cash and cash equivalents at the end of the period were $884,663, down from $1,212,977 at the beginning of the period [27] - The company maintained a strong liquidity position with $885 million in cash and $316 million in operating cash flow, returning $347 million to stockholders through stock repurchases and dividends [6] Stock Repurchase and Authorizations - A new stock repurchase authorization of $1 billion was approved, effective once the current authorization is fully utilized [5] - The company repurchased common stock worth $555,703 during the financing activities [27] Future Outlook - The company expects annual net revenues for fiscal 2025 to grow between 0.5% and 3.5%, with comparable sales in the range of 2.0% to 5.0% [12] - Long-term expectations include mid-to-high single-digit annual net revenue growth and operating margins in the mid-to-high teens [12] Market Performance - Pottery Barn's comparable brand revenue grew by 1.3% in Q3 2025, while West Elm saw a 3.3% increase [20] - The number of retail stores increased to 513, with 5 openings and 1 closure during the quarter [25] Strategic Focus - The company continues to prioritize innovation, product design, and exceptional customer service to capture additional market share [3]

Core Viewpoint - Williams-Sonoma, Inc. is expected to report a decline in quarterly earnings for the third quarter, with analysts projecting earnings of $1.87 per share, down from $1.96 per share in the same period last year [1] Financial Performance - The company reported second-quarter revenue of $1.84 billion, reflecting a 2.7% increase from the previous year and surpassing Wall Street's estimate of $1.83 billion [2] - For the upcoming third quarter, the consensus estimate for revenue is $1.87 billion, compared to $1.8 billion a year earlier [1] Stock Performance - Williams-Sonoma shares experienced a slight decline of 0.3%, closing at $180.75 [2] Analyst Ratings and Price Targets - Wells Fargo analyst Zachary Fadem maintained an Equal-Weight rating and increased the price target from $190 to $205 [5] - Evercore ISI Group analyst Oliver Wintermantel maintained an In-Line rating and reduced the price target from $210 to $200 [5] - JP Morgan analyst Christopher Horvers maintained a Neutral rating and raised the price target from $168 to $215 [5] - Goldman Sachs analyst Kate McShane maintained a Neutral rating and increased the price target from $179 to $203 [5] - Morgan Stanley analyst Simeon Gutman maintained an Equal-Weight rating and raised the price target from $185 to $200 [5]

Key Takeaways WSM's Q3 sales are projected to rise 3.3% YoY to $1.86B, driven by strong e-commerce and marketing momentum.Tariffs, macro uncertainty and higher incentive compensation are expected to weigh on gross and SG&A margins.Pottery Barn, West Elm, PB Kids & Teen and the namesake brand to show positive comps growth YoY.Williams-Sonoma, Inc. (WSM) is scheduled to release its third-quarter fiscal 2025 results on Nov. 19, before the opening bell.In the last reported quarter, the company’s earnings and ne ...

Core Insights - Analysts project that Williams-Sonoma (WSM) will report quarterly earnings of $1.85 per share, reflecting a year-over-year decline of 5.6% [1] - Revenue is expected to reach $1.85 billion, which is an increase of 2.9% from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst projections [1] Revenue Estimates - Revenue for Pottery Barn is projected at $728.31 million, representing a year-over-year increase of 1.4% [4] - Revenue for Williams-Sonoma is estimated at $257.13 million, indicating a 2% year-over-year increase [4] - Revenue for Other segments is forecasted to reach $115.07 million, showing a significant year-over-year increase of 23.7% [4] - Revenue for West Elm is expected to be $457.63 million, reflecting a 1.5% increase from the previous year [5] Store Metrics - The number of stores for Williams-Sonoma is estimated to be 153, down from 160 in the same quarter last year [5] - Pottery Barn Kids is projected to have 44 stores, down from 46 year-over-year [5] - The number of Pottery Barn stores is estimated at 180, compared to 186 last year [6] - West Elm is expected to have 120 stores, down from 122 in the previous year [6] - Total number of stores is projected to be 509, down from 525 year-over-year [7] Sales Performance - Comparable store sales for Pottery Barn Kids and Teen are estimated to have a year-over-year change of 4.4%, up from 3.8% in the same quarter last year [8] - Williams-Sonoma shares have decreased by 0.6% in the past month, contrasting with a 1.4% increase in the Zacks S&P 500 composite [8]

Core Insights - Williams-Sonoma's stock closed at $198.96, reflecting a 2.56% increase, outperforming the S&P 500's gain of 0.37% [1] - The company is expected to report an EPS of $1.85, a decrease of 5.61% year-over-year, with revenue projected at $1.85 billion, an increase of 2.92% [2] - For the full year, earnings are projected at $8.54 per share and revenue at $7.82 billion, indicating a decline of 2.84% in earnings and an increase of 3.85% in revenue compared to the previous year [3] Analyst Estimates - Recent adjustments to analyst estimates for Williams-Sonoma reflect changing business dynamics, with upward revisions indicating positive sentiment towards the company's profitability [4] - The Zacks Rank system, which evaluates these estimate changes, currently ranks Williams-Sonoma at 3 (Hold), with a recent 0.14% decrease in the EPS estimate [5][6] Valuation Metrics - Williams-Sonoma has a Forward P/E ratio of 22.71, slightly above the industry average of 22.68, and a PEG ratio of 3.13, compared to the industry average PEG ratio of 2.02 [7] Industry Context - The Retail - Home Furnishings industry, part of the Retail-Wholesale sector, ranks 174 in the Zacks Industry Rank, placing it in the bottom 30% of over 250 industries [8]

Group 1 - Williams-Sonoma (WSM) stock received a Relative Strength (RS) Rating upgrade from 70 to 75, indicating an improvement in market performance but still below the preferred threshold of 80 or higher [1] - Arhaus also showed improved Relative Strength performance, indicating a positive trend in its technical performance [1][3] - Williams-Sonoma achieved an RS Rating of 82, reflecting its strong market leadership among peers [3] Group 2 - The stock performance of RH and Wayfair declined due to the impact of Trump furniture tariffs, while other stocks like Williams-Sonoma and Arhaus showed resilience [3] - The market is observing stocks with rising Relative Price Strength, highlighting a competitive landscape among furniture retailers [3]

Core Insights - Williams-Sonoma, Inc. has a market capitalization of $23 billion and operates as a multi-channel specialty retailer focused on high-quality home products [1] - The company is expected to report a Q3 2025 EPS of $1.85, reflecting a 5.6% decrease from $1.96 in the same quarter last year, although it has consistently exceeded Wall Street's earnings estimates in the past four quarters [2] - For fiscal 2025, the anticipated EPS is $8.54, a 2.8% decline from $8.79 in fiscal 2024, but a projected increase of 4.9% to $8.96 in fiscal 2026 [3] Performance Metrics - Over the past 52 weeks, Williams-Sonoma shares have surged by 42.6%, outperforming the S&P 500 Index's gain of 17.9% and the Consumer Discretionary Select Sector SPDR Fund's increase of 19.7% [4] - Despite reporting better-than-expected Q2 2025 EPS of $2 and revenue of $1.8 billion, shares fell slightly on August 27 due to a 17.7% year-over-year increase in merchandise inventories to $1.4 billion, attributed to strategic pull-forward to mitigate tariff impacts [5] Analyst Sentiment - The consensus view among analysts on WSM stock is moderately optimistic, with a "Moderate Buy" rating; out of 20 analysts, six recommend "Strong Buy," one suggests "Moderate Buy," and 13 indicate "Hold" [6] - The average analyst price target for Williams-Sonoma is $208.28, suggesting a potential upside of 7.8% from current levels [6]

Core Insights - Pottery Barn has launched an exclusive home furnishings collection in collaboration with Norman Rockwell, focusing on festive themes and nostalgic designs [1][2][3] Product Details - The collection includes printed sheet sets, cozy comforters, a velvet-backed decorative pillow featuring Santa Claus, tea towels, a table runner, napkins, wine bags, and framed artwork depicting joyful holiday scenes [2] - Classic holiday motifs such as poinsettias, red ribbons, and the word "Noel" are integrated throughout the collection, enhancing its festive appeal [2] Company Statements - Pottery Barn's president, Monica Bhargava, expressed excitement about bringing nostalgia and joy into customers' homes through this collaboration, highlighting the significance of Rockwell's artwork in capturing holiday magic [3] - Margaret Rockwell, representing the Rockwell family, emphasized the timeless spirit of Norman Rockwell's art and its role in celebrating cherished holiday traditions [3] Availability - The Norman Rockwell for Pottery Barn collection is now available for purchase online at potterybarn.com [4]

Group 1 - Williams-Sonoma (WSM) reached a record high in January and has since consolidated, forming a long cup-with-handle base with a buy point at 210.59, indicating potential for a breakout or retrenchment [1] - The company received an upgrade to its Relative Strength Rating, reflecting improving technical performance [2][4] - Williams-Sonoma's Relative Strength Rating is now at 82, showcasing its rising market leadership despite being shy of key benchmarks [4] Group 2 - Other companies in the furniture sector, such as RH and Wayfair, experienced sell-offs due to Trump administration tariffs, while Williams-Sonoma's stock showed resilience [4] - The Dow Jones index saw a significant drop of nearly 900 points amid recession concerns, impacting major stocks like Nvidia and Tesla [4] - Williams-Sonoma is set to join the S&P 500 alongside DoorDash and TKO, indicating its growing prominence in the market [4]

Core Insights - Williams-Sonoma, Inc. (NYSE: WSM) stock has increased by nearly 20% over the past four months, indicating strong market performance despite high valuation levels [1]. Investment Background - The analyst has nearly two decades of experience in the logistics sector and a decade in stock investing and macroeconomic analysis, focusing on ASEAN and NYSE/NASDAQ stocks, particularly in banks, telecommunications, logistics, and hotels [1]. - The analyst began trading in the Philippine stock market in 2014, initially investing in blue-chip companies and later diversifying into various industries and market cap sizes [1]. - The analyst entered the US market in 2020, gaining experience through a relative's trading account before opening their own [1]. Market Engagement - The analyst has holdings in US banks, hotels, shipping, and logistics companies, utilizing analyses from Seeking Alpha to compare with the Philippine market [1].