Williams-Sonoma tops Q2 expectations, raises revenue outlook

Published 27/08/2025, 14:24

Investing.com -- Williams-Sonoma, Inc. reported second-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $2.00, surpassing the consensus estimate of $1.78. Revenue for the quarter came in at $1.84 billion, above the analyst estimate of $1.82 billion.

The home furnishings retailer delivered comparable brand revenue growth of 3.7% YoY, with positive comparable sales across all brands. Operating margin expanded by 240 basis points to 17.9% compared to the same period last year, driven by higher merchandise margins and supply chain efficiencies. The company’s shares rose 1.2% following the announcement.

"We are proud to deliver strong results in the second quarter of 2025, driving a comp of +3.7% with all brands again running positive comps," said Laura Alber, President and Chief Executive Officer. "This growing outperformance was driven by positive comps in both furniture and non-furniture, and strong performance in our retail and ecommerce channels."

Williams-Sonoma raised its fiscal 2025 net revenue guidance, now expecting annual net revenue growth in the range of 0.5% to 3.5%, with comparable sales growth between 2.0% and 5.0%. The company maintained its operating margin guidance of 17.4% to 17.8% despite anticipated pressure from increased tariffs.

The retailer reported diluted EPS growth of 19.8% compared to the same quarter last year. Gross margin improved by 220 basis points to 47.1%, while SG&A expenses as a percentage of revenue decreased by 20 basis points to 29.2%.

 

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