[Second Quarter 2025 Results Overview](index=1&type=section&id=Q2_2025_Results_Overview) Williams-Sonoma, Inc. reported strong Q2 2025 results, driven by comparable brand revenue growth, significant operating margin expansion, and increased diluted EPS [Headline Financial Performance](index=1&type=section&id=Headline_Financial_Performance) Williams-Sonoma, Inc. announced strong second quarter 2025 results, with comparable brand revenue growth, significant operating margin expansion, and increased diluted EPS, leading to an upward revision of the fiscal 2025 net revenue outlook Q2 2025 Headline Performance Metrics | Metric | Q2 2025 Performance | | :----------------------- | :------------------ | | Comparable Brand Revenue | +3.7% | | Operating Margin | 17.9% (+240bps YoY) | | Diluted EPS | $2.00 (+19.8% YoY) | - The company has raised its 2025 net revenue outlook[1](index=1&type=chunk) [CEO Statement](index=1&type=section&id=CEO_Statement) CEO Laura Alber highlighted the strong Q2 2025 performance, driven by positive comparable sales across all brands and channels, exceeding profitability estimates, and attributed this outperformance to strong execution and the company's robust omni-channel platform and brand portfolio, positioning it for future growth despite macroeconomic uncertainties - All brands achieved positive comparable sales, contributing to a **+3.7% comp**[3](index=3&type=chunk) - Outperformance was driven by positive comparable sales in both furniture and non-furniture categories, and strong performance in retail and e-commerce channels[3](index=3&type=chunk) - The company has a powerful portfolio of brands serving diverse categories and life stages, supported by a strong omni-channel platform and infrastructure[4](index=4&type=chunk) [Q2 2025 Key Highlights](index=1&type=section&id=Q2_2025_Key_Highlights) Key financial and operational highlights for Q2 2025 include strong comparable brand revenue growth, significant gross margin expansion driven by higher merchandise margins and supply chain efficiencies, and improved operating income, with the company also maintaining a strong liquidity position and returning capital to stockholders through repurchases and dividends Q2 2025 Financial and Operational Highlights | Metric | Q2 2025 Value | Change YoY | | :--------------------------------- | :-------------- | :--------- | | Comparable Brand Revenue | +3.7% | | | Gross Margin | 47.1% | +220bps | | - Merchandise Margins | | +190bps | | - Supply Chain Efficiencies | | +30bps | | SG&A Rate | 29.2% | -20bps | | Operating Income | $328 million | | | Operating Margin | 17.9% | +240bps | | Diluted EPS | $2.00 | +19.8% | | Merchandise Inventories | $1.4 billion | +17.7% | | Cash and Cash Equivalents | $986 million | | | Operating Cash Flow | $283 million | | | Returns to Stockholders | $280 million | | | - Stock Repurchases | $199 million | | | - Dividends | $81 million | | - SG&A rate decreased by **20bps** due to lower advertising and general expenses, partially offset by higher performance-based incentive compensation[4](index=4&type=chunk) - Merchandise inventories increased by **17.7%** year-over-year, including a strategic pull forward of receipts to mitigate the impact of higher tariffs in fiscal 2025[4](index=4&type=chunk) [Financial Outlook and Adjustments](index=2&type=section&id=Financial_Outlook_and_Adjustments) The company updates its fiscal 2025 outlook, reiterates long-term targets, and addresses a prior-period freight expense adjustment [Fiscal 2025 Outlook](index=2&type=section&id=Fiscal_2025_Outlook) The company has raised its fiscal 2025 net revenue guidance to reflect higher trends, while reiterating its operating margin guidance, acknowledging pressure from incremental tariff costs, with the outlook also detailing expectations for interest income, effective tax rate, and the fiscal year structure Fiscal 2025 Guidance Summary | Metric | Fiscal 2025 Guidance | | :----------------------- | :------------------- | | Net Revenues | +0.5% to +3.5% | | Comparable Sales | +2.0% to +5.0% | | Operating Margin | 17.4% to 17.8% | | Annual Interest Income | ~$30 million | | Effective Tax Rate | ~26.5% | - Incremental flow-through from higher net revenues is expected to be pressured by increased tariff costs, including additional tariffs on goods from China (**30%**), India (**50%**), Vietnam (**20%**), and steel/aluminum/copper (**50%**)[8](index=8&type=chunk) - Fiscal 2025 is a 52-week year, compared to a 53-week year in fiscal 2024, with comparable sales reported on a 52-week versus 52-week basis[8](index=8&type=chunk) [Long-Term Financial Targets](index=2&type=section&id=Long_Term_Financial_Targets) The company maintains its long-term financial targets, expecting sustained annual net revenue growth and a stable operating margin - Long-term annual net revenue growth is expected to be in the **mid-to-high single digits**[8](index=8&type=chunk) - Long-term operating margin is targeted in the **mid-to-high teens**[8](index=8&type=chunk) [First Quarter 2024 Out-of-Period Freight Adjustment](index=2&type=section&id=First_Quarter_2024_Out_of_Period_Freight_Adjustment) The company identified an over-recognition of freight expense totaling $49 million across fiscal years 2021-2023, which was deemed immaterial to prior periods and corrected in the first quarter of fiscal 2024 by reducing cost of goods sold and accounts payable - Over-recognized freight expense of **$49 million** was identified for fiscal years 2021, 2022, and 2023[5](index=5&type=chunk) - The cumulative error was determined not to be materially misstated for prior periods or projected fiscal 2024 results[5](index=5&type=chunk) - An out-of-period adjustment of **$49 million** was recorded in Q1 fiscal 2024 to reduce cost of goods sold and accounts payable[5](index=5&type=chunk) [Company Information and Disclosures](index=2&type=section&id=Company_Information_and_Disclosures) Company information, non-GAAP disclosures, forward-looking statement risks, and conference call details are presented [About Williams-Sonoma, Inc.](index=5&type=section&id=About_Williams-Sonoma%2C%20Inc.) Williams-Sonoma, Inc. is recognized as the world's largest digital-first, design-led, and sustainable home retailer, operating a diverse portfolio of brands through e-commerce, catalogs, and retail stores, supported by a loyalty program and an international presence - Williams-Sonoma, Inc. is the world's largest digital-first, design-led, and sustainable home retailer[12](index=12&type=chunk) - The company's brand portfolio includes Williams Sonoma, Pottery Barn, West Elm, Pottery Barn Kids, Pottery Barn Teen, Williams Sonoma Home, Rejuvenation, Mark and Graham, and GreenRow[12](index=12&type=chunk) - Brands are marketed through e-commerce, direct-mail catalogs, and retail stores, with operations in the U.S., Puerto Rico, Canada, Australia, and the United Kingdom, plus international franchisees[12](index=12&type=chunk) [SEC Regulation G — Non-GAAP Information](index=3&type=section&id=SEC%20Regulation%20G%20%E2%80%94%20Non-GAAP%20Information) This section clarifies the company's use of non-GAAP financial measures, stating they provide supplemental information for investors and management to analyze business performance, but are not a substitute for GAAP measures and may not be comparable to those of other companies - Non-GAAP financial measures are used to provide meaningful supplemental information for investors and facilitate evaluation of current period performance on a comparable basis with prior periods[9](index=9&type=chunk) - Management uses non-GAAP measures to analyze changes in underlying business from quarter to quarter[9](index=9&type=chunk) - Non-GAAP measures should be considered a supplement to, not a substitute for or superior to, GAAP financial measures and may not be comparable to similarly titled measures used by other companies[9](index=9&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements that are subject to risks and uncertainties, which could cause actual results to differ materially, with these risks including tariffs, economic conditions, consumer behavior, supply chain disruptions, and operating costs, as detailed in SEC filings - Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially[10](index=10&type=chunk) - Key risks include the impact of current and potential future tariffs, general economic conditions (inflation, recession fears, interest rates), consumer preferences and buying trends, and global supply chain factors[11](index=11&type=chunk) - All financial results described are preliminary and subject to change until the Form 10-Q for the quarter ended August 3, 2025, is filed[11](index=11&type=chunk) [Conference Call and Contact Information](index=2&type=section&id=Conference%20Call%20and%20Contact%20Information) Details for the live conference call and webcast regarding the Q2 2025 results are provided, along with contact information for key financial executives - A live conference call was scheduled for August 27, 2025, at 7:00 A.M. (PT), accessible via webcast[7](index=7&type=chunk) - Contact information for Jeff Howie (EVP, Chief Financial Officer) and Jeremy Brooks (SVP, Chief Accounting Officer & Head of Investor Relations) is provided[8](index=8&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Unaudited_Condensed_Consolidated_Financial_Statements) Unaudited condensed consolidated financial statements, including earnings, balance sheets, cash flows, and retail store data, are presented [Condensed Consolidated Statements of Earnings](index=6&type=section&id=Condensed_Consolidated_Statements_of_Earnings) The unaudited condensed consolidated statements of earnings present the company's financial performance for the thirteen and twenty-six weeks ended August 3, 2025, and July 28, 2024, showing increases in net revenues, gross profit, operating income, and net earnings for the recent quarter Condensed Consolidated Statements of Earnings (Thirteen and Twenty-six Weeks Ended, in thousands) **For the Thirteen Weeks Ended:** | Metric (in thousands) | August 3, 2025 | July 28, 2024 | | :-------------------- | :------------- | :------------ | | Net Revenues | $1,836,760 | $1,788,307 | | Gross Profit | $864,623 | $803,940 | | Operating Income | $328,059 | $277,900 | | Net Earnings | $247,562 | $216,855 | | Diluted EPS | $2.00 | $1.67 | **For the Twenty-six Weeks Ended:** | Metric (in thousands) | August 3, 2025 | July 28, 2024 | | :-------------------- | :------------- | :------------ | | Net Revenues | $3,566,873 | $3,448,655 | | Gross Profit | $1,630,432 | $1,599,108 | | Operating Income | $618,772 | $595,012 | | Net Earnings | $478,825 | $477,271 | | Diluted EPS | $3.86 | $3.67 | [Q2 Net Revenues and Comparable Brand Revenue Growth (Decline) by Brand](index=6&type=section&id=Q2_Net_Revenues_and_Comparable_Brand_Revenue_Growth_%28Decline%29_by_Brand) This table details net revenues and comparable brand revenue growth or decline for each brand during Q2 2025 and Q2 2024 | Brand | Q2 2025 Net Revenues (in thousands) | Q2 2024 Net Revenues (in thousands) | Q2 2025 Comparable Brand Revenue Growth (Decline) | Q2 2024 Comparable Brand Revenue Growth (Decline) | | :---------------------- | :---------------------------------- | :---------------------------------- | :------------------------------------------------ | :------------------------------------------------ | | Pottery Barn | $724,579 | $725,323 | 1.1% | (7.1)% | | West Elm | $468,550 | $458,779 | 3.3% | (4.8)% | | Williams Sonoma | $249,053 | $239,867 | 5.1% | (0.8)% | | Pottery Barn Kids and Teen | $286,749 | $259,408 | 5.3% | 1.5% | | Other | $107,829 | $104,930 | N/A | N/A | | **Total** | **$1,836,760** | **$1,788,307** | **3.7%** | **(3.3)%** | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed_Consolidated_Balance_Sheets) The unaudited condensed consolidated balance sheets provide a snapshot of the company's financial position at August 3, 2025, February 2, 2025, and July 28, 2024, detailing assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (As of, in thousands) | Item | August 3, 2025 | February 2, 2025 | July 28, 2024 | | :------------------------ | :------------- | :--------------- | :------------ | | **Assets** | | | | | Total Current Assets | $2,655,520 | $2,754,609 | $2,714,564 | | Total Assets | $5,228,368 | $5,301,607 | $5,181,939 | | **Liabilities & Equity** | | | | | Total Current Liabilities | $1,766,309 | $1,911,974 | $1,743,202 | | Total Liabilities | $3,078,672 | $3,159,188 | $2,945,849 | | Total Stockholders' Equity| $2,149,696 | $2,142,419 | $2,236,090 | - Merchandise inventories, net, increased from **$1,217,693 thousand** as of July 28, 2024, to **$1,433,605 thousand** as of August 3, 2025[18](index=18&type=chunk) - Cash and cash equivalents decreased from **$1,265,259 thousand** as of July 28, 2024, to **$985,823 thousand** as of August 3, 2025[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed_Consolidated_Statements_of_Cash_Flows) The unaudited condensed consolidated statements of cash flows detail the cash movements from operating, investing, and financing activities for the twenty-six weeks ended August 3, 2025, and July 28, 2024, showing a net decrease in cash and cash equivalents for the current period Condensed Consolidated Statements of Cash Flows (For the Twenty-six Weeks Ended, in thousands) | Cash Flow Activity | August 3, 2025 | July 28, 2024 | | :----------------------------- | :------------- | :------------ | | Net Cash Provided by Operating Activities | $401,678 | $473,283 | | Net Cash Used in Investing Activities | $(111,488) | $(70,959) | | Net Cash Used in Financing Activities | $(521,133) | $(398,222) | | Net (Decrease) Increase in Cash and Cash Equivalents | $(227,154) | $3,252 | | Cash and Cash Equivalents at End of Period | $985,823 | $1,265,259 | - Cash used in financing activities significantly increased, primarily due to higher repurchases of common stock (**$289,108 thousand** in 2025 vs. **$173,603 thousand** in 2024) and increased payment of dividends (**$155,994 thousand** in 2025 vs. **$135,768 thousand** in 2024)[21](index=21&type=chunk) - Purchases of property and equipment increased to **$110,293 thousand** for the twenty-six weeks ended August 3, 2025, from **$70,946 thousand** in the prior year period[21](index=21&type=chunk) [Retail Store Data](index=8&type=section&id=Retail_Store_Data) The unaudited retail store data provides a breakdown of store counts by brand at the beginning and end of the second quarter of fiscal 2025, showing a slight increase in total store count during the quarter but a decrease compared to the prior year Retail Store Data by Brand | Brand | Beginning of Quarter (May 4, 2025) | Openings | Closings | End of Quarter (August 3, 2025) | As of July 28, 2024 | | :---------------------- | :--------------------------------- | :------- | :------- | :------------------------------ | :------------------ | | Pottery Barn | 180 | 1 | — | 181 | 185 | | Williams Sonoma | 154 | — | — | 154 | 158 | | West Elm | 119 | — | — | 119 | 122 | | Pottery Barn Kids | 44 | — | — | 44 | 45 | | Rejuvenation | 11 | — | — | 11 | 11 | | **Total** | **508** | **1** | **—** | **509** | **521** | - One new Pottery Barn store was opened during the quarter, resulting in a net increase of **one store** for the total company from the beginning to the end of Q2 2025[19](index=19&type=chunk) - The total number of stores decreased from **521** as of July 28, 2024, to **509** as of August 3, 2025[19](index=19&type=chunk)

Core Insights - Williams-Sonoma, Inc. (WSM) is set to announce its second-quarter fiscal 2025 results on August 27, with expectations of continued earnings growth and revenue performance exceeding previous estimates [1][2] Revenue Performance - The Zacks Consensus Estimate for WSM's Q2 earnings per share (EPS) has increased to $1.79, reflecting a 2.9% rise from $1.74 in the same quarter last year [2] - Revenue expectations are pegged at $1.82 billion, indicating a 1.6% growth from $1.79 billion year-over-year [2] - The company's revenue growth is anticipated to be driven by increased non-furniture sales, improved furniture sales, and effective collaborations [3] Segment Analysis - Projected revenues for the Pottery Barn brand are $730.2 million, a 0.7% increase year-over-year [5] - West Elm brand revenues are expected to reach $472.2 million, up 2.9% from the prior year [5] - The namesake brand's revenues are forecasted at $247.4 million, indicating a 3.2% year-over-year increase [6] - Pottery Barn Kids and Teen brand revenues are projected at $268.2 million, reflecting a 3.4% increase year-over-year [6] Margin Expectations - WSM's bottom line and margins are expected to improve due to supply chain optimization and operational efficiency [7] - Selling, general and administrative expenses are projected to contract by 40 basis points year-over-year to 29% [8] - Gross profit is expected to increase by 1% year-over-year to $812.4 million [8] Comparable Sales Growth - Comps growth for Pottery Barn Kids and Teen is expected to be 3.4%, compared to a 1.5% increase a year ago [9] - Pottery Barn's comps are projected to grow by 1%, recovering from a 7.1% decline last year [10] - West Elm's comps are anticipated to increase by 2.1%, improving from a 4.8% decline a year ago [10] - The namesake brand's comps are expected to rise by 2.9%, recovering from a 0.8% decline last year [10] Earnings Prediction - The model predicts an earnings beat for WSM, supported by a positive Earnings ESP of +1.33% and a Zacks Rank of 2 (Buy) [11][12]

Core Insights - Williams-Sonoma, Inc. (WSM) is enhancing its presence in the home furnishings market through strategic expansions and brand development [1][9] - The opening of Rejuvenation's first Tennessee store in Nashville marks the brand's 12th retail location, showcasing its commitment to craftsmanship and quality [1][9] Expansion Initiatives - The new Green Hills store will offer a curated collection of handcrafted products, including customizable lighting and furniture, produced in Portland, OR [2] - Williams-Sonoma plans to grow its core brands by introducing new products and expanding into non-furniture categories such as textiles and housewares [4] - The company is set to open four new stores in Mexico, including the first West Elm in Puerto Vallarta, and anticipates growth in Canada and other key markets [4] Financial Performance - WSM shares have increased by 6.7% year-to-date, outperforming the Zacks Retail - Home Furnishings industry's growth of 4.2% [6][9] - The company's growth is attributed to its B2B initiatives and ongoing expansion plans [6] Brand Strategy - Williams-Sonoma's strategy focuses on blending design-driven innovation with exceptional customer service across its brand portfolio [3] - The company emphasizes the importance of aesthetically appealing stores located in prime areas to support its market presence [3]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Williams-Sonoma (WSM) - Williams-Sonoma currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Price Performance - Over the past week, WSM shares increased by 1.91%, while the Zacks Retail - Home Furnishings industry rose by 4.62% [5] - In a longer timeframe, WSM's monthly price change is 11.95%, outperforming the industry's 9.54% [5] - Over the last three months, WSM shares have risen by 25.75%, and over the past year, they are up 45.81%, compared to the S&P 500's increases of 11.03% and 17.4%, respectively [6] Trading Volume - WSM's average 20-day trading volume is 1,361,689 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, two earnings estimates for WSM have been revised upward, while none have been lowered, leading to an increase in the consensus estimate from $8.53 to $8.54 [9] - For the next fiscal year, three estimates have moved upwards with no downward revisions [9] Conclusion - Considering the strong momentum indicators and positive earnings outlook, WSM is identified as a 2 (Buy) stock with a Momentum Score of A, making it a promising near-term investment option [11]

Group 1 - The U.S. government is launching a significant tariff investigation on imported furniture, which is expected to impact the furniture industry and potentially bring manufacturing back to states like North Carolina, South Carolina, and Michigan [1] - The furniture import value in the U.S. for 2024 is approximately $25.5 billion, reflecting a 7% increase from 2023, with around 60% of imports coming from Vietnam and China [1] - Companies like Wayfair, RH, and Williams-Sonoma saw their stock prices drop following the announcement, while La-Z-Boy, which produces most of its furniture domestically, experienced a stock price increase [1] Group 2 - The new tariffs have already contributed to a 0.7% increase in home goods prices in July, adding further pressure to an industry already affected by previous tariffs [2] - Demand for new furniture has been declining over the past year, partly due to consumers waiting for lower interest rates and a slowdown in the real estate market [2] - Consumers are becoming more selective with discretionary spending due to persistent inflation, impacting sectors like dining, clothing, travel, and home decor [2]

Core Viewpoint - The Trump administration is investigating imported furniture for potential tariffs, which has led to significant stock declines for companies reliant on foreign manufacturing, while some domestic manufacturers have seen stock increases [1][2][5]. Company Impact - Major home goods companies such as Wayfair, RH, and Williams-Sonoma experienced stock declines of over 6% following the announcement [2][4]. - In contrast, La-Z-Boy's shares rose nearly 2.5% as the company primarily manufactures within the United States [5]. Industry Context - The furniture industry is facing challenges, including a year-long decline in demand for big-ticket items due to a sluggish housing market and persistent inflation affecting consumer spending [9][10]. - The investigation into furniture tariffs is part of a broader trade agenda aimed at reducing reliance on foreign manufacturing and encouraging domestic production, particularly in traditional furniture-making states like North Carolina and South Carolina [11][12]. Trade Relations - The timing of the potential tariffs comes amidst ongoing trade negotiations with global partners, which have provided some market stability, although many disputes remain unresolved [8]. - It is unclear whether the new furniture tariffs would be in addition to existing country-specific duty rates negotiated through bilateral trade deals [7][13].

Core Viewpoint - The upcoming earnings report for Williams-Sonoma is anticipated to show a quarterly earnings increase of 2.3% year-over-year, with revenues expected to rise by 1.5% [1] Financial Projections - Quarterly earnings per share are projected at $1.78, reflecting a 2.3% increase from the previous year [1] - Revenue is forecasted to reach $1.81 billion, indicating a 1.5% year-over-year growth [1] Analyst Consensus - There have been no revisions in the consensus EPS estimate over the last 30 days, suggesting stability in analysts' forecasts [1][2] - Analysts predict specific revenue figures for various segments: - Pottery Barn: $732.61 million (+0.9% YoY) [4] - Williams-Sonoma: $244.00 million (+1.7% YoY) [4] - Pottery Barn Kids and Teen: $264.14 million (+2% YoY) [4] - West Elm: $464.29 million (+1.2% YoY) [5] Store Metrics - Total number of stores is expected to be 509, down from 521 year-over-year [5] - Specific store counts are projected as follows: - Pottery Barn: 179 (down from 185) [5] - Pottery Barn Kids: 44 (down from 45) [6] - Rejuvenation: 12 (up from 11) [6] - West Elm: 120 (down from 122) [6] - Williams-Sonoma: 154 (down from 158) [7] Market Performance - Williams-Sonoma shares have increased by 9.2% over the past month, outperforming the S&P 500 composite's 1.1% increase [8] - The company holds a Zacks Rank of 2 (Buy), indicating expectations of continued outperformance in the near future [8]

A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon. WSM has rallied 17.1% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates WSM could be poised for a breakout. The bullish case only gets stronger once investors take into account WSM's positive earnings outlook for the current quarter. There have been 1 upward revision compared to none lower over the past 60 ...

Company Performance - Williams-Sonoma (WSM) closed at $210.20, with a daily increase of +1.56%, outperforming the S&P 500's gain of 0.32% [1] - The stock has risen by 26.49% over the past month, significantly exceeding the Retail-Wholesale sector's gain of 2.39% and the S&P 500's gain of 3.08% [1] Upcoming Earnings - The company is expected to report an EPS of $1.78, reflecting a growth of 2.3% compared to the same quarter last year [2] - Projected net sales for the upcoming earnings are estimated at $1.81 billion, which is an increase of 1.46% from the previous year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are predicted to be $8.53 per share, indicating a decrease of -2.96% from the previous year [3] - Revenue for the fiscal year is estimated at $7.72 billion, showing a slight increase of +0.14% from the prior year [3] Analyst Estimates - Recent modifications to analyst estimates indicate changing business trends, with positive revisions suggesting confidence in the company's performance [4] - The Zacks Rank system, which reflects these estimate changes, currently ranks Williams-Sonoma at 2 (Buy) [6] Valuation Metrics - Williams-Sonoma has a Forward P/E ratio of 24.25, which is higher than the industry average Forward P/E of 21.74 [7] - The company's PEG ratio stands at 3.35, compared to the Retail - Home Furnishings industry's average PEG ratio of 2.83 [7] Industry Context - The Retail - Home Furnishings industry is part of the Retail-Wholesale sector and currently holds a Zacks Industry Rank of 178, placing it in the bottom 28% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Company Performance - Williams-Sonoma (WSM) closed at $203.78, with a daily increase of +1.63%, outperforming the S&P 500's loss of 0.49% [1] - The stock has risen by 18.5% over the past month, contrasting with the Retail-Wholesale sector's decline of 1.34% and the S&P 500's gain of 0.96% [1] Upcoming Earnings - The company is expected to report EPS of $1.78, reflecting a 2.3% increase from the prior-year quarter [2] - Revenue is anticipated to be $1.81 billion, up 1.46% from the prior-year quarter [2] - Full-year estimates project earnings of $8.53 per share and revenue of $7.72 billion, indicating year-over-year changes of -2.96% and +0.14%, respectively [2] Analyst Estimates - Recent changes to analyst estimates for Williams-Sonoma indicate evolving short-term business trends, with positive revisions suggesting analyst optimism [3] - The Zacks Rank system, which assesses these estimate changes, currently ranks Williams-Sonoma at 2 (Buy) [5] Valuation Metrics - Williams-Sonoma has a Forward P/E ratio of 23.5, which is higher than the industry average of 20.51 [6] - The company has a PEG ratio of 3.24, compared to the Retail - Home Furnishings industry's average PEG ratio of 2.73 [6] Industry Context - The Retail - Home Furnishings industry ranks in the bottom 30% of all industries, with a current Zacks Industry Rank of 175 [7] - The Zacks Industry Rank indicates that top-rated industries outperform the bottom half by a factor of 2 to 1 [7]