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 ...

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]

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 ...