Williams-Sonoma Beats Earnings, Raises Outlook

(WSM) reported mixed fourth-quarter fiscal 2025 results, with earnings per share of $3.04 surpassing the Zacks Consensus Estimate of $2.89, but net revenues of $2.36 billion missing the $2.40 billion consensus. Both metrics declined year-over-year.

Despite the top-line pressure, comparable brand revenues grew a robust 3.2%, exceeding expectations, driven by strong performance in Williams-Sonoma, West Elm, and Pottery Barn Kids and Teens brands. Operating margin contracted to 20.3% due to lower merchandise margins and occupancy deleverage, though cost discipline provided some offset.

For fiscal 2025, the company achieved a record diluted EPS of $8.84 and 3.5% comparable brand revenue growth. Looking ahead, WSM issued an upbeat revised fiscal 2025 guidance, raising its operating margin forecast to 17.8-18.1% and projecting continued growth for fiscal 2026, despite navigating macroeconomic pressures and new tariff headwinds.

The company returned $1.2 billion to shareholders through repurchases and dividends.