Williams-Sonoma (WSM) Q4 2026 earnings summary

Executive summary

• Achieved $7.8B in FY2025 revenue, with 65% from ecommerce and 35% from retail, outpacing industry growth and maintaining leadership in a fragmented market.

• Q4 comp sales up 3.2%, FY comp up 3.5%, and record diluted EPS of $8.84; Q4 operating margin at 20.3%, FY margin at 18.1%.

• Focused on in-house design, digital-first strategy, AI-driven enhancements, and quality as key differentiators.

• Strategic priorities for FY2026 include accelerating growth, world-class customer service, and driving earnings.

• Increased quarterly dividend by 15% to $0.76/share in March 2026, marking the 17th consecutive year of increases.

Financial highlights

• FY2025 net revenues: $7.8B (+3.5% comp); Q4 net revenues: $2.36B (+3.2% comp); retail up 6.4%, ecommerce up 2.2%.

• FY2025 gross margin: 46.2% (down 30bps YoY); Q4 gross margin: 46.9% (down 40bps YoY); operating margin: 18.1%.

• Record diluted EPS: $8.84 (+1% YoY); Q4 EPS: $3.04.

• $5B returned to shareholders over five years via dividends and share repurchases; $1.2B returned in FY2025.

• Adjusted ROIC at 51.6% for FY2025, significantly above peer median.

Outlook and guidance

• FY2026 comp brand revenue growth guided at 2%-6% (midpoint 4%), net revenue growth 2.7%-6.7%, operating margin 17.5%-18.1%.

• FY2026 net revenues projected at $8.2B, with continued focus on ecommerce and retail growth.

• Guidance assumes no meaningful housing recovery, no tariff refunds, and current tariff environment persists.

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

• 20 new store openings and 19 repositions planned for FY2026; store count to remain flat.