- Williams-Sonoma reported net revenue of $1.84 billion in Q2 2025, increasing by 2.7% year-over-year and meeting estimates of $1.83 billion.
- Comparable sales growth across all brands was strong, with overall growth at 3.7%, a significant improvement from the previous year’s decline of 3.3%.
- Pottery Barn’s comparable sales increased by 1.1%, recovering from a 7.1% decline the previous year.
- Williams-Sonoma Segment saw comparable sales rise by 5.1%, outperforming the estimated growth of 4.73%.
- West Elm reported a 3.3% increase in comparable sales, bouncing back from a 4.8% drop last year.
- Pottery Barn Kids and Teen achieved a 5.3% increase in comparable sales, exceeding expectations.
- The gross margin improved to 47.1% compared to 46.2% the previous year.
- Total store count grew slightly by 0.2% quarter-over-quarter to 509 stores, above the estimated 468.92 stores.
- Williams Sonoma operates 154 stores, a 2.5% decline year-over-year.
- West Elm maintains 119 stores, aligning with the estimates.
- Pottery Barn Kids operates 44 stores, meeting expectations.
- Rejuvenation stores are steady at 11, as estimated.
- The operating margin increased to 17.9%, higher than last year’s 16.2%.
- Guidance for fiscal 2025 was raised, reflecting higher net revenue trends.
- Expected annual interest income is approximately $30 million, with an effective tax rate around 26.5%.
- Anticipated operating margin for fiscal 2025 is between 17.4% to 17.8%.
- Earnings per share for Q2 were $2.00, reflecting nearly a 20% growth in earnings.
- The strong performance across retail and ecommerce channels, along with positive comps in furniture and non-furniture categories, contributed to the company’s ability to raise guidance despite economic challenges.
- Analyst ratings include 8 buys, 14 holds, and 3 sells.
Williams Sonoma on Smartkarma
Analysts on Smartkarma, like Baptista Research, are closely following Williams-Sonoma, the prominent home furnishings retailer. Baptista Research recently delved into the company’s performance in the first quarter of fiscal 2025, highlighting a positive 3.4% increase in comparable sales and strong profitability. With all brands showing positive comps, Williams-Sonoma achieved an operating margin of 16.8% and earnings per share of $1.85, reflecting an 8.8% growth from the previous year. Baptista Research aims to assess various factors influencing the company’s valuation in the near future, employing a Discounted Cash Flow (DCF) methodology for independent evaluation.
Furthermore, Baptista Research is optimistic about Williams-Sonoma’s prospects, noting the company’s efforts to enhance its e-commerce presence. Despite potential challenges, Williams-Sonoma finished fiscal year 2024 on a positive note with strong financial results driven by strategic decisions in supply chain efficiencies, product innovation, and collaborations. In the fourth quarter of 2024, the company outperformed industry trends with a 3.1% increase in comparable sales, an operating margin of 21.5%, and earnings per share reaching $3.28. Analysts are closely observing the company’s digital dominance and how it could impact the stock’s recovery in the market.
A look at Williams Sonoma Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts examining Williams Sonoma‘s long-term outlook see a promising future ahead. The company has scored high in Momentum, indicating strong positive trends that could propel its growth. With a solid score in Growth and Resilience as well, Williams Sonoma is positioned well to expand its offerings and weather any downturns. Although the Value and Dividend scores are not as high as the other factors, the overall outlook remains positive for the company.
Williams Sonoma, Inc. is a retail powerhouse known for its cooking and home furnishing products through various brands like Williams-Sonoma, Pottery Barn, and West Elm. With a diverse range of merchandise offered through retail stores and e-commerce platforms, the company has established a strong presence in the market. The Smartkarma Smart Scores show that Williams Sonoma is on a solid growth trajectory with a good level of resilience, making it a company to watch for potential long-term investment opportunities.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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