Williams-Sonoma tops Q1 expectations, reiterates full-year guidance

Published 22/05/2025, 14:24

Investing.com -- Williams-Sonoma (NYSE:WSM) reported its latest quarterly earnings on Thursday, topping consensus expectations for both profit and revenue. 

WSM shares are down around 4.7% premarket.

The company posted Q1 EPS of $1.85, $0.11 better than the analyst estimate of $1.74, while revenue for the quarter came in at $1.73 billion, above the consensus estimate of $1.67 billion. 

During the quarter, the company’s comparable brand revenue grew 3.4%, while it also reported an operating margin of 16.8%.

“We are proud to deliver strong results in the first quarter of 2025, driven by a positive top-line comp and continued strength in our profitability," commented Williams-Sonoma President and Chief Executive Officer, Laura Alber.

While Alber acknowledged that "existing macroeconomic and geopolitical uncertainties are a focal point for the market," she said that "volatility is not new in our industry, and we are confident in our ability to adapt and navigate whatever lies ahead."

Looking ahead, WSM reiterated its full-year outlook, even with absorbing incremental costs from the existing tariff environment.

For the full year, WSM expects annual net revenues in the range of -1.5% to +1.5% due to the impact from the 53rd week in fiscal 2024, with comps in the range of flat to +3.0%.

Operating margin is seen between 17.4% and 17.8%.

"Over the long term, we continue to expect mid-to-high single-digit annual net revenue growth with an operating margin in the mid-to-high teens," concluded the company.

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