Williams-Sonoma’s third-quarter results reflect efforts by the retailer to maintain momentum in furniture and other home products while mitigating the effects of tariffs and leveraging its portfolio of store banners.
Net earnings were $241.6 million, or $1.96 per diluted share, the company reported, versus $237.3 million, or $1.87 per diluted share, in the year-prior quarter.
Third quarter earnings and revenues beat Zacks Investment Research analyst consensus estimates of $1.87 per diluted share and $1.85 billion, respectively.
Company comparable sales increased 4% in the quarter, year over year, with Pottery Barn up 1.3%, West Elm up 3.3%, Williams Sonoma up 7.3% and Pottery Barn Kids and Teen up 4.4%. Net revenues were $1.88 billion versus $1.8 billion in the year-previous period. Operating income was $319.1 million versus $305 million in the year-before quarter.
Williams-Sonoma reiterated its fiscal 2025 net revenue guidance, which stands in the range of up 0.5% to 3.5% inclusive of the impact from a 53rd week in fiscal 2024, with comps in the range of up 2% to 5%, while raising its operating margin outlook to 17.8% to 18.1% from 17.4% to 17.8% previously.
In a conference call, Laura Alber, Williams-Sonoma president and CEO, said the company managed to put up a solid third quarter, delivering on the bottom line despite substantive tariff headwinds. She said the company continues with tariff mitigation steps, such as making changes in sourcing and working with vendors on costs, but it is taking select price increases with a focus on maintaining competitiveness in cost to the consumer.
Jeff Howie, Williams-Sonoma CFO, noted in the conference call that established and innovative company operations had a good quarter. “Furniture and non-furniture categories both ran positive comps, reflecting strength across all categories of our offering,” he said. “White-space opportunities, such as dorm, West Elm Kids and Rejuvenation, grew double digits.”
Alber, in announcing the company’s financial returns, said, “We are proud to deliver strong results in the third quarter of 2025 with an accelerating positive top-line comp and continued outperformance in profitability. In Q3, our comp came in above expectations at 4%, with another quarter of positive comps in all brands. Operating margin came in at 17%, expanding 10 basis points, with earnings per share of $1.96, growing 4.8% year-over-year. We are encouraged by our continued strong performance and are confident in our outlook for Q4. Our continued strong results reflect the power of our operating model, industry-leading channel experiences, and strong portfolio of brands. Each and every day, we prioritize innovation, product design and exceptional customer service. These are the qualities that set us apart in a fragmented industry and position us to capture additional market share. We see tremendous opportunity to continue to lead our industry as we execute on our vision to own the home, and the places where our customers work, stay and play.”
