US stock futures edge lower after S&P 500 hits record high; PCE data in focus
On Wednesday, Evercore ISI maintained its In Line rating and $185.00 price target for Williams-Sonoma (NYSE:WSM), following the company’s release of its fourth-quarter results which exceeded expectations. The home furnishings retailer, with a substantial market capitalization of $20.09 billion, reported a 3.1% increase in comparable store sales, surpassing the predicted decline of 1.4%, and an earnings per share (EPS) of $3.28, a 21% year-over-year rise, beating the anticipated $2.94. According to InvestingPro data, seven analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in the company’s performance.
Williams-Sonoma’s fourth-quarter performance was bolstered by stronger-than-expected comparable store sales and gross margins, with InvestingPro reporting a robust gross profit margin of 46.75% over the last twelve months. The company also posted a record operating margin of 17.9% for the full year. Despite this, the guidance for operating margins in 2025 was set at 17.4%-17.8%, a slight decrease from the midpoint compared to the previous year, which aligns closely with Evercore ISI’s projection of 17.7% but falls below the wider market’s expectation of 18.1%.
Management’s long-term outlook anticipates sales growth in the mid-single to high-single digits and maintains the expectation for future operating margins in the mid-to-high teens. This forecast remains significantly higher than pre-pandemic levels, which stood at 8.6% in 2019, reflecting the structural changes the company underwent during the pandemic period.
The stock showed early signs of decline due to the 2025 margin guidance, even though the midpoint guidance for comparable store sales in 2025 is up by 1.5%. Further details on the factors influencing the company’s projections are expected to be disclosed during the earnings call.
In other recent news, Williams-Sonoma Inc . reported impressive financial results for the fourth quarter of 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $3.28, exceeding the forecast of $2.91, and reported revenue of $2.46 billion, which was above the anticipated $2.35 billion. The company’s full-year revenue reached $7.7 billion, with an EPS of $8.50, representing a 14.4% increase year-over-year. Despite these strong earnings, the company’s stock experienced a decline in pre-market trading. Williams-Sonoma continues to focus on its digital capabilities and non-furniture business, with guidance for 2025 projecting flat to 3% revenue growth. Analysts have noted the company’s proactive measures in response to tariff impacts and its ongoing supply chain efficiencies. Additionally, the company has maintained a solid operating margin of 21.5% for the quarter, an improvement from the previous year. Williams-Sonoma remains committed to enhancing customer service and driving earnings, with a long-term aim for mid to high single-digit revenue growth.
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