Williams-Sonoma shares fall as guidance disappoints investors

Published 19/03/2025, 20:52
Williams-Sonoma shares fall as guidance disappoints investors

SAN FRANCISCO - Williams-Sonoma, Inc. (NYSE:WSM) reported better-than-expected fourth quarter earnings and revenue, but shares fell 4.6% as the company’s outlook for fiscal 2025 failed to impress investors.

The home goods retailer posted adjusted earnings per share of $3.28 for the fourth quarter, surpassing analyst estimates of $2.91. Revenue came in at $2.46 billion, beating the consensus forecast of $2.35 billion. Comparable brand revenue increased 3.1% YoY.

For the full fiscal year 2024, Williams-Sonoma reported comparable brand revenue declined 1.6%. The company achieved a record annual operating margin of 17.9% with full-year adjusted earnings per share of $8.50.

Looking ahead to fiscal 2025, Williams-Sonoma expects annual net revenues in the range of -1.5% to +1.5%, with comparable sales between flat to 3% growth. The company forecasts an operating margin between 17.4% to 17.8%.

"We are proud of our strong finish to 2024," said Laura Alber, President and CEO. "This success was fueled by the strength of our operating model, our standout seasonal offerings, our impactful collaborations, and a strong improvement in both retail and online furniture sales."

The company also announced a 16% increase in its quarterly dividend to $0.66 per share.

Despite the earnings beat, Williams-Sonoma’s stock declined 4.6% following the release, as investors appeared to focus on the cautious outlook for fiscal 2025 amid economic uncertainty.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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