From Yahoo Finance.: 2025-05-22 11:48:00

Williams-Sonoma, Inc. shares dropped after reporting mixed results for the fiscal first quarter of 2025. Revenue was $1.73 billion, up 4.2% year over year, beating estimates. Adjusted earnings per share of $1.56 missed the consensus estimate of $1.76. Gross margin was 44.3%, down 360 basis points, including a benefit from an out-of-period freight adjustment.

Adjusted gross margin fell 60 basis points due to a drop in merchandise margins. Occupancy expenses rose slightly to $198 million. Quarterly operating income was $291 million with a 16.8% margin. Williams-Sonoma increased inventories by 10.3% year over year to $1.3 billion.

The company is optimistic despite macroeconomic uncertainties. Williams-Sonoma maintains its fiscal 2025 outlook despite absorbing higher costs from tariffs. Revenue expectations range between -1.5% and +1.5%, with operating margin forecast between 17.4% and 17.8%.

In dollar terms, revenue is projected at $7.60 billion to $7.83 billion. Williams-Sonoma aims for mid-to-high single-digit annual revenue growth and mid-to-high teens operating margins. Shares are trading lower by 9.77% at $153.27.



Read more at Yahoo Finance.: Williams-Sonoma To Absorb Tariff Costs, Maintains Revenue Outlook