Williams-Sonoma, Inc.
NYSE-WSM
Company Overview
Williams-Sonoma, Inc. operates as an omni-channel specialty retailer of various products for home. It offers cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams Sonoma Home brand, as well as home furnishings and decorative accessories under the Williams Sonoma lifestyle brand; and furniture, bedding, lighting, rugs, table essentials, and decorative accessories under the Pottery Barn brand. The company also provides home decor products under the West Elm brand; kids accessories under the Pottery Barn Kids brand; and an organic bedding to multi-purpose furniture under the Pottery Barn Teen brand. In addition, it offers made-to-order lighting, hardware, furniture, and home decors inspired by history under the Rejuvenation brand; and women's and men's accessories, travel, entertaining and bar, home décor, and seasonal items under the Mark and Graham brand, as well as operates a 3-D imaging and augmented reality platform for the home furnishings and décor industry. The company markets its products through e-commerce websites, direct-mail catalogs, and retail stores. It operates 544 stores comprising 502 stores in 41states, Washington, D.C., and Puerto Rico; 20 stores in Canada; 19 stores in Australia; 3 stores in the United Kingdom; and 139 franchised stores, as well as e-commerce websites in various countries in the Middle East, the Philippines, Mexico, South Korea, and India. Williams-Sonoma, Inc. was founded in 1956 and is headquartered in San Francisco, California.
Name
Williams-Sonoma, Inc.
CEO
Laura J. Alber
Website
www.williams-sonomainc.com
Sector
Specialty Retail
Year Founded
1956
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Bulls Say
Less discretionary categories, such as cookware and small appliances, offer some resiliency amid macroeconomic cyclicality. Trade and contract B2B customers tend to provide a steadier source of revenue.
The firm opened company-owned stores in Australia in 2013 and has since expanded to the UK and Canada. International opportunities (owned and franchised) could provide location and sales growth and help elevate brand awareness.
Around two-thirds of sales have come from the e-commerce channel in recent years, which helps minimize store expenses and maximize operating margins.
Bears Say
Supply chain remediation from prior port congestion and lower freight pricing could reverse, increasing expenses.
Protracted periods of economic weakness, including in the housing market, could hinder home-related purchases and weigh on top- and bottom-line growth more than we anticipate.
Rising promotional activity can create a challenging environment for nearly all types of retailers, including furniture and home furnishing retailers. Low customer switching costs, along with the proliferation of e-commerce and mass-merchant competitors, could pressure long-term profitability.
What's happening
Nov 13, 2025 - Dec 13, 2025
Williams-Sonoma Faces Challenges Amid Mixed Earnings and Legal Issues
- Williams-Sonoma's third-quarter earnings report exceeded EPS expectations but led to immediate selling pressure.
- The company is facing legal challenges that raise concerns about brand integrity in a competitive retail environment.
- Despite headwinds, WSM outperformed its sector significantly over the past month.
Over the past month, Williams-Sonoma Inc. (WSM) experienced a decline of 2.2%. This performance stands in contrast to the S&P 500, which saw a slight drop of only 0.2%. The underperformance relative to the broader market reflects various financial events and sentiments surrounding WSM's operations during this period.
A key event impacting WSM was its third-quarter earnings report released on November 19. Although the company reported an earnings per share (EPS) of $1.96, surpassing estimates of $1.87, it faced significant selling pressure immediately after the announcement, resulting in a sharp decline of 6.6% shortly thereafter. While revenues slightly exceeded forecasts, concerns regarding rising tariffs complicated future profitability prospects.
In addition to these financial results, legal issues arose as Williams-Sonoma initiated proceedings against Quince for allegedly selling duplicate products. This lawsuit has raised questions about brand integrity and competitive positioning within an increasingly challenging retail landscape, contributing further to bearish sentiment around WSM's stock performance during this timeframe.
Despite these challenges, there were some positive indicators leading up to and following the earnings report; analysts maintained favorable ratings with RBC Capital reiterating an "Outperform" rating just days prior on November 21st. Additionally, insider buying activity was noted when an officer acquired shares in late November—an action often interpreted as confidence in future growth potential amidst mixed analyst assessments post-earnings.
Overall market sentiment remained cautious due to macroeconomic pressures affecting discretionary spending within retail sectors like home furnishings; however, it is noteworthy that while WSM fell short relative to broader indices like the S&P 500 (-0.2%), it managed better than many peers within Consumer Discretionary (XLY), outperforming that sector by approximately 47%.