Gains across product categories and comparable sales growth across banners helped Williams-Sonoma to a strong second quarter as it adjusted to tariff pressures.
Net earnings were $247.6 million, or $2 per diluted share, versus $216.9 million, or $1.67 per diluted share, in the year-earlier quarter, the company reported.
An analyst consensus estimate from Zacks Investment Research called for earnings per diluted share of $1.79 and revenues of $1.82 billion.
Company comparable revenue advanced 3.7% in the second quarter, Williams-Sonoma maintained, with, by banner, Pottery Barn up 1.1%, West Elm up 3.3%, Williams Sonoma up 5.1% and Pottery Barn Kids and Teen up 5.3%.
Net revenue was $1.84 billion versus $1.79 billion in the quarter a year prior. Operating income was $328.1 million versus $277.9 million in the year-earlier period.
Williams-Sonoma raised its fiscal 2025 net revenue guidance to a range of up 0.5% to 3.5% inclusive of the impact from the 53rd week in fiscal 2024, with comps in the range of up 2% to 5%. Previously, the company forecasted net revenue to be down 1.5% to up 1.5% with comparable store sales (comps) flat to up 3%. Williams-Sonoma maintained its operating margin outlook, citing the effects of tariff pressures in making the decision.
In a conference call, Laura Alber, Williams-Sonoma president and CEO, said the second quarter enjoyed accelerated positive comps despite continued geopolitical uncertainty and no material improvement in the housing market, with gains in furniture and non-furniture segments. However, she noted that, in the current tariff environment, Williams-Sonoma is taking select price increases on products while maintaining competitive pricing, working with vendors to mitigate the impact of duties and expanding its ‘Made in the USA’ assortment, production and partnerships.”
In terms of operations, Alber said Williams-Sonoma is advancing its next generation of digital design tools and preparing to launch a culinary companion developed to help customers with everything from cookware discovery to holiday entertaining.
In announcing the financial results, Alber said, “We are proud to deliver strong results in the second quarter of 2025, driving a comp of plus 3.7% with all brands again running positive comps. Additionally, we exceeded profitability estimates with an operating margin of 17.9% and earnings per share of $2.00, with earnings growth of nearly 20%. This growing outperformance was driven by positive comps in both furniture and non-furniture, and strong performance in our retail and e-commerce channels, and has allowed us to raise our guidance on the top-line and reiterate our guidance on the bottom-line, despite continued macroeconomic uncertainty and the tariff environment. Across the company, from our supply chain and care center to our brands and retail stores, we are proud of our strong execution and outperformance. We have a powerful portfolio of brands, serving a range of categories, aesthetics and life stages, and we have built a strong omnichannel platform and infrastructure, which positions us well for the next stage of growth.”
