Williams-Sonoma (WSM) investor relations material

Executive summary

• Q3 2025 delivered 4.0% comparable brand revenue growth, with all major brands posting positive comps and diluted EPS rising 4.8% to $1.96.

• Operating margin expanded to 17.0%, with gross margin improving to 46.1% due to higher merchandise margins and supply chain efficiencies.

• Retail channel comps grew 8.5%, supported by store remodels and enhanced in-store experiences, while e-commerce comps rose 1.9%.

• Strong liquidity with $885 million in cash and no outstanding debt, supporting significant shareholder returns.

• AI initiatives and new product introductions drove customer service improvements and operational efficiencies.

Financial highlights

• Q3 2025 net revenues reached $1.88 billion, up 4.6% year-over-year.

• Gross margin improved to 46.1%, up 70 basis points, and operating margin reached 17.0%.

• SG&A expenses were $549 million, 29.1% of revenues, up 60 basis points year-over-year.

• Net earnings for Q3 2025 were $241.6 million, with diluted EPS of $1.96.

• Returned $347 million to shareholders in Q3 via $267 million in stock repurchases and $80 million in dividends.

Outlook and guidance

• Fiscal 2025 net revenue guidance reiterated at +0.5% to +3.5%, with comparable brand revenue growth expected between 2% and 5%.

• Full-year operating margin guidance raised to 17.8%-18.1%.

• Guidance reflects current tariffs, with incremental tariff rate now at 29%.

• Long-term guidance: mid- to high-single-digit revenue growth and mid- to high-teens operating margins.

• Management remains cautious due to macroeconomic uncertainty, including tariffs, weak housing market, and inflation.