Here's What Investors Must Know Ahead of Williams-Sonoma's Q2 Release

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]