Williams‑Sonoma Inc. reported fiscal third‑quarter 2025 results on November 19 2025, posting comparable‑brand revenue of $1.882 billion, a 4.0 % increase from $1.800 billion a year earlier. The growth was driven by a 7.3 % rise in the namesake Williams Sonoma brand, a 4.4 % increase in Pottery Barn Kids, a 3.3 % gain in West Elm, and a 1.3 % lift in Pottery Barn. These gains offset a modest decline in legacy product categories, allowing the company to maintain a strong top‑line trajectory.
Operating margin expanded to 17.0 %, up 10 basis points from the prior quarter and 80 basis points from the same period in 2024. The margin improvement reflects disciplined cost management, including supply‑chain efficiencies that lowered merchandise costs, and a favorable mix shift toward higher‑margin product lines. Earnings per share rose to $1.96, a 4.8 % year‑over‑year increase, beating the consensus estimate of $1.87 by $0.09. Net earnings reached $241.6 million, driven by the combined effect of revenue growth and margin expansion.
The company raised its full‑year operating‑margin outlook to 17.8 %–18.1 %, an upward revision from the previous guidance of 17.5 %–17.8 %. Williams‑Sonoma also announced a new $1 billion share‑repurchase authorization, underscoring management’s confidence in the company’s cash‑generating ability and its commitment to returning capital to shareholders.
CEO Laura Alber highlighted the company’s “operating model” and “industry‑leading channel experiences” as key drivers of the quarter’s performance. She noted that incremental tariff costs have more than doubled to 29 % from the early part of the year, yet the firm has mitigated the impact through cost controls and pricing power. Alber also cautioned that softness in the housing market remains a headwind, but she expressed confidence that the company’s diversified brand portfolio and digital‑first strategy will sustain demand in the coming quarters.
Investors reacted to the results with caution, focusing on the heightened tariff environment and the ongoing softness in the housing market. While the company beat both revenue and earnings estimates, the market’s tempered response reflects concerns about future cost pressures and demand uncertainty in the home‑furnishings sector.
Overall, Williams‑Sonoma’s Q3 2025 results demonstrate resilient top‑line growth, margin expansion, and a strong capital‑return program, while the company signals confidence in navigating macro‑economic headwinds through disciplined cost management and a diversified brand mix.
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