Williams-Sonoma (WSM) Q4 2025 earnings summary

Executive summary

• Q4 comparable brand revenue grew 3.1%, reversing prior negative trends and exceeding expectations, with record Q4 operating margin of 21.5% and diluted EPS of $3.28, up 20.6% year-over-year.

• Fiscal 2024 revenue reached $7.7B, with a record annual operating margin of 17.9% (excluding a Q1 adjustment), and full-year diluted EPS of $8.50, up 16.8% year-over-year.

• Demonstrated consistent long-term growth with a 4.6% 20-year revenue CAGR and 12.5% EPS CAGR, supported by core and emerging brands, B2B expansion, and digital-first strategy.

• Outperformance driven by supply chain efficiencies, full-price selling, and cost control.

• Prioritized returning to growth, elevating customer service, and driving earnings for 2025.

Financial highlights

• Q4 net revenues reached $2.5B, with a 3.1% comp; retail stores +7%, e-commerce +1.3%.

• Q4 gross margin was 47.3%, up 130bps year-over-year, driven by merchandise margin, supply chain, and occupancy.

• Full-year net revenues were $7.7B; e-commerce made up 66% of total revenues.

• Full-year gross margin improved to 46.5% (non-GAAP) or 45.8% excluding Q1 adjustment.

• $4.1B returned to shareholders over the last 5 years through dividends and share buybacks.

Outlook and guidance

• Fiscal 2025 is a 52-week year; net revenues expected to range from -1.5% to +1.5% due to the prior year’s 53rd week, with comps flat to +3.0%.

• Operating margin for fiscal 2025 projected between 17.4% and 17.8%, inclusive of current tariffs.

• Capital expenditures planned at $275M-$300M, focused on e-commerce, retail optimization, and supply chain.

• Quarterly dividend increased 16% to $0.66/share; 16th consecutive year of dividend growth.

• Long-term guidance reiterated: mid to high single-digit revenue growth, margins in mid to high teens.