Williams-Sonoma beat a Wall Street estimate on fourth-quarter earnings but missed on total revenue, as comparable store sales gained in all banners but Pottery Barn.
Just before it released quarterly financial results, Williams-Sonoma announced it promoted Vicki McWilliams to president of stores and customer care. She had served as executive vice president of stores and customer care. Her responsibilities cross Williams-Sonoma operations, including the namesake, West Elm and the Pottery Barn banners.
Net earnings were $368 million, or $3.04 per diluted share, versus $410.7 million or $3.28 per diluted share, in the year-previous quarter, the company reported.
A Zacks Investment Research analyst consensus estimate called for earnings per diluted share of $2.89 and revenue of $2.4 billion in the 2025 fourth quarter.
Overall comparable sales gained 3.2%. Comparable sales slipped 2.3% at Pottery Barn while gaining 4.8% at West Elm, 7.2% at Williams Sonoma and 4% at Pottery Barn Kids and Teen. Net revenue was $2.36 billion versus $2.46 billion in the year-earlier quarter. Operating income was $477.8 million versus $530.1 million, in the year-prior period.
For the full fiscal year, net earnings were $1.09 billion, or $8.84 per diluted share, versus $1.13 billion, or $8.79 per diluted share, in the year previous, Williams-Sonoma noted.
Net revenue was $7.81 billion versus $7.71 billion in the year earlier. Operating income was $1.42 billion versus $1.43 billion in the year prior.
The fiscal fourth quarter and full year 2024 included an extra week compared to the 2025 periods.
Williams-Sonoma stated that it expects an annual net revenue advance during the current fiscal year in the range of 2.7% to 6.7%, with comps up in the range of 2% to 6% and an operating margin coming in at between 17.5% to 18.1%.Laura Alber, Williams-Sonoma, president and CEO, said in a conference call that in the current fiscal year, the company will focus, among other efforts, on comparable sales growth at its banners, particularly Pottery Barn and West Elm.
“We expect Williams Sonoma to continue performing well, supported by premium quality, authority in the kitchen and strong seasonal storytelling,” Alber said, adding, “We’re planning for growth in the children’s business with baby and dorm as highlights.”
Product newness will be another point of emphasis, with fresh, on-trend collections, finishes and design details rolling out. Williams-Sonoma intends to boost collaborations such as those with designers and established outside brands. The company also will extend and update and proven collections, Alber said.
Further, Williams-Sonoma anticipates increasing social and influencer partnerships as the company improves storytelling across websites, emails and catalogs. The company reported it will invest in new stores, repositionings and relocations while boosting services including the company’s “Take It Home Today” function.
In announcing the financial results, Alber said: “In Q4, our comp came in at plus 3.2%, and we delivered an operating margin of 20.3% with earnings per share of $3.04. Normalizing for the 53rd week last year and the tariff impact this year, we delivered substantial operating margin improvement versus last year. As we look forward to 2026 and beyond, we are confident in our competitive advantages that have allowed us to take market share, and our focus is on widening that advantage. In 2025, we delivered sustainable, profitable growth in a dynamic environment. This performance is a testament to strong consumer demand for our distinctive products and brands, and our world class team. Our powerful portfolio of brands, strong channel execution and growth strategies drove our results in 2025. And in 2026, we are focused on accelerating growth, delivering world-class customer service and driving earnings.”
