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. Williams-Sonoma, Inc. was founded in 1956 and is headquartered in San Francisco, California.

Williams-Sonoma, Inc.

RH RH, formerly Restoration Hardware, is scheduled to report its second-quarter fiscal 2025 (ended Aug. 2) results on Sept. 11, after market close.
In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 244.4% while the net revenues missed the same by 0.5%, respectively. Year over year, the metrics grew 132.5% and 12%, respectively.
RH reported better-than-expected earnings in two of the last four quarters and missed on the remaining two occasions, the average surprise being 57.6%.
How are RH’s Estimates Placed?
For the fiscal second quarter, the Zacks Consensus Estimate for earnings per share (EPS) has moved down to $3.19 from $3.29 in the past seven days. However, the newly estimated figure indicates an increase of 88.8% from $1.69 per share reported in the year-ago quarter.
RH Price and EPS Surprise
The consensus mark for net revenues is pegged at $905.5 million, indicating growth of 9.1% from the year-ago figure of $829.7 million.
Factors That are Expected to Have Impacted RH’s Q2 Performance
RH’s top line is expected to have increased year over year in the fiscal second quarter because of the benefits realized from the investments made to elevate and expand its product offerings and platform. Moreover, favorable market demand trends in the Furniture & Home Furnishing business space are expected to have catalyzed the growth in the to-be-reported quarter. Additionally, the demand patterns and gains from the international market, particularly in Europe, are expected to have provided an additional revenue stream, thereby boosting its top-line growth.
For the fiscal second quarter, RH expects revenues to grow year over year by 8-10%.
Also, RH’s strategy to digitally reimagine the brand and business model is likely to have been boding well. Going forward, the company expects to make significant investments to enhance and differentiate its online experience, with plans to upgrade its website throughout 2025.
On the bottom-line front, RH’s earnings and margins are expected to have improved in the fiscal second quarter due to its ongoing efforts in shifting its sourcing out of China. To minimize the adverse impacts caused by the new tariff regime and inflationary pressures, this strategic resourcing effort is expected to have increased margins alongside enhanced top-line leverage.
For the quarter to be reported, RH expects the adjusted operating margin to be between 15% and 16%, up from 11.7% reported in the year-ago quarter. Its expectations for adjusted EBITDA margin in the range of 20.5-21.5% also reflect year-over-year growth from 17.2%.
What the Zacks Model Says for RH
Our proven model does predict an earnings beat for RH this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
RH’s Earnings ESP: The company has an Earnings ESP of +2.51%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
RH’s Zacks Rank: It currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
Williams-Sonoma Inc. WSM reported results for the second-quarter fiscal 2025 (ended Aug. 3), with earnings and net revenues beating the Zacks Consensus Estimate and increasing year over year.
The quarter’s performance was driven by positive comps in both furniture and non-furniture, and strong performance in its retail and ecommerce channels. With a strong omnichannel platform and infrastructure, going forward, Williams-Sonoma expects to beat its expectations and multiply growth across its brands, despite macro challenges. Williams-Sonoma now projects fiscal 2025 annual net revenues in the range of +0.5% to +3.5% (from -1.5% to +1.5%), with comparable brand revenue growth now expected to be between +2.0% and +5.0% (from flat to +3.0%).
Lowe’s Companies, Inc. LOW posted second-quarter fiscal 2025 results with year-over-year growth in both the top and bottom lines. While revenues came in just shy of the Zacks Consensus Estimate, earnings surpassed the same.
The Mooresville, NC-based home improvement retailer returned to positive comparable sales during the quarter, with a 1.1% increase in comparable sales as both Pro and DIY customers contributed despite a challenging start to the quarter from the weather. Management of Lowe’s also updated its full-year outlook following the completion of the Artisan Design Group (“ADG”) acquisition. Total sales are now projected between $84.5 billion and $85.5 billion, up from the prior range of $83.5-$84.5 billion.
The Home Depot Inc. HD has reported second-quarter fiscal 2025 results, wherein both the sales and earnings missed the Zacks Consensus Estimate. However, both metrics improved year over year. Also, comparable sales increased year over year.
Home Depot is confident about its initiatives to strengthen the business. Management highlighted continued momentum in smaller home-improvement projects and reiterated its focus on building the best interconnected experience for customers and growing share, while reaffirming fiscal 2025 guidance. Home Depot anticipates sales to increase 2.8% year over year, with adjusted earnings per share expected to fall 2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

RH Gears to Report Q2 Earnings: Here's What Investors Must Know

The following are the top rated Consumer Discretionary stocks according to Validea's Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
NVR INC (NVR) is a large-cap growth stock in the Construction Services industry. The rating according to our strategy based on Warren Buffett is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: NVR, Inc. is engaged in the construction and sale of single-family detached homes, townhomes, and condominium buildings. The Company operates through two segments: homebuilding and mortgage banking. The homebuilding operations primarily construct and sell single-family detached homes, townhomes and condominium buildings under three trade names: Ryan Homes, NVHomes and Heartland Homes, and operate in 36 metropolitan areas in 16 states and Washington, District of Columbia (D.C.). Its mortgage banking operations primarily operate in the homebuilding operations market. Its mortgage banking business consists of origination fees, gains on sales of loans, and title fees. The homebuilding segments are comprised of operating divisions, such as Mid Atlantic, North East, Mid East and South East. Its Mid Atlantic divisions operate in Maryland, Virginia, West Virginia, Delaware and Washington, District of Columbia (D.C.). Its North East division operates in New Jersey and Eastern Pennsylvania.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of NVR INC
TRACTOR SUPPLY CO (TSCO) is a large-cap growth stock in the Personal & Household Prods. industry. The rating according to our strategy based on Warren Buffett is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Tractor Supply Company is a rural lifestyle retailer in the United States. The Company is focused on supplying the needs of recreational farmers and ranchers. It operates retail stores under the names Tractor Supply Company and Petsense by Tractor Supply. Its stores are located in towns outlying various metropolitan markets and in rural communities. It also offers an expanded assortment of products through the Tractor Supply mobile application and online at TractorSupply.com and Petsense.com. The Company's selection of merchandise consists of various product categories, including livestock, equine and agriculture; companion animal; seasonal and recreation; truck, tool, and hardware, and clothing, gift, and decor. Its brands consist of 4health, American Farmworks, Bit & Bridle, Blue Mountain, C.E. Schmidt, Country Lane, Countyline, Country Tuff, Dumor, Farm Table, Groundwork, Huskee, and JobSmart.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of TRACTOR SUPPLY CO
WILLIAMS-SONOMA INC (WSM) is a large-cap growth stock in the Retail (Specialty) industry. The rating according to our strategy based on Warren Buffett is 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Williams-Sonoma, Inc. is an omnichannel specialty retailer of products for the home. Its products, representing distinct merchandise strategies, such as Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham, and GreenRow are marketed through e-commerce Websites, retail stores and direct-mail catalogs. These brands are also part of The Key Rewards, its loyalty and credit card program that offers members benefits across the Williams-Sonoma family of brands. Williams Sonoma products offer everything for cooking, dining and entertaining, including cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture and a vast library of cookbooks. It operates in the United States, Puerto Rico, Canada, Australia and the United Kingdom, offers international shipping to customers worldwide, and has unaffiliated franchisees that operate stores in the Middle East, the Philippines, Mexico, South Korea and India.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of WILLIAMS-SONOMA INC
DICK'S SPORTING GOODS INC (DKS) is a large-cap growth stock in the Retail (Specialty) industry. The rating according to our strategy based on Warren Buffett is 85% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: DICK'S Sporting Goods, Inc. is an omni-channel sporting goods retailer. The Company owns and operates Golf Galaxy, Public Lands, and Going Going Gone! specialty concept stores, and also offer its products online and through its mobile applications. It also owns and operates DICKS House of Sport and Golf Galaxy Performance Center, as well as GameChanger, a youth sports mobile platform for live streaming, scheduling, communications and scorekeeping. It operates approximately 723 DICKS Sporting Goods locations across the United States. It carries a wide variety of national brands, including but not limited to adidas, Asics, Brooks, Callaway Golf, Carhartt, Columbia, Hoka, Jordan, New Balance, Nike, Peloton, The North Face, Under Armour, Wilson, Yeti, and others. Its vertical brands include brands that it owns across hardlines and softlines and are available in its stores and online such as Alpine Design, CALIA, DSG, ETHOS, Fitness Gear, MAXFLI, Nishiki, Walter Hagen, and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of DICK'S SPORTING GOODS INC
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea's Top Consumer Discretionary Stocks Based On Warren Buffett - 9/2/2025

The S&P 500 Index ($SPX) (SPY) on Wednesday closed up by +0.24%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up by +0.32%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up by +0.17%. September E-mini S&P futures (ESU25) rose +0.20%, and September E-mini Nasdaq futures (NQU25) rose +0.13%.
Stock indexes recovered from early losses on Wednesday and settled higher, with the S&P 500 posting a new record high and the Nasdaq 100 reaching a one-week high. Strength in software stocks led the overall market higher as MongoDB surged more than +37% after reporting better-than-expected Q2 adjusted EPS and raising its 2026 adjusted EPS forecast.
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Also, optimism that Nvidia will report stellar earnings results after Wednesday's close boosted stocks. Over the last five years, Nvidia has only missed on earnings in one quarter. With a $4.4 trillion market capitalization, Nvidia has an 8.1% weighting in the S&P 500, giving it significant power to impact the index.
Stocks extended their gains Wednesday afternoon after bond yields gave up an early advance and turned lower on expectations that the Fed would cut interest rates as soon as next month. The 10-year T-note yield fell -2 bp to 4.24%.
Comments today from New York Fed President Williams were neutral to slightly dovish, as he stated that the US economy is slowing, not stalling, and he remains optimistic about the economy's direction. He added that every FOMC meeting is "live" for interest rates and that at some point, it will be appropriate for us to adjust rates downward as we remain in a "modestly restrictive" stance on policy.
US MBA mortgage applications fell -0.5% in the week ended August 22, with the purchase mortgage sub-index up +2.2% and the refinancing mortgage sub-index down -3.5%. The average 30-year fixed rate mortgage rose +1 bp to 6.69% from 6.68% in the prior week.
Regarding tariffs, President Trump late Monday threatened to impose new tariffs and export restrictions on advanced technology and semiconductors in retaliation against other nations' digital services taxes that hit American companies. Last week, Mr. Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect last Monday and did not exclude goods already in transit.
In other recent tariff news, Mr. Trump on August 13 extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India's purchases of Russian oil. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
The markets this week will focus on any fresh tariff news or developments on ending the Ukraine-Russian war. On Thursday, Q2 GDP is expected to be revised upward by +0.1 to 3.1% (q/q annualized). Also, weekly initial unemployment claims are expected to fall by -5,000 to 230,000. On Friday, July personal spending is expected to climb +0.3% m/m, and July personal income is expected to rise +0.4% m/m. Also, the July core PCE price index, the Fed's preferred inflation gauge, is expected to climb +0.2% m/m and +2.9% y/y. In addition, the Aug MNI Chicago PMI is expected to fall -0.6 to 46.5. Finally, the University of Michigan's final-Aug US consumer sentiment index is expected to be unrevised at 58.6.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 88% at the next FOMC meeting on September 16-17. The markets are discounting the chances at 51% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With Q2 earnings season winding down, over 95% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates.
Overseas stock markets on Wednesday settled mixed. The Euro Stoxx 50 rebounded from a 2-week low and closed up +0.17%. China's Shanghai Composite closed down -1.76%. Japan's Nikkei Stock 225 closed up +0.30%.
Interest Rates
September 10-year T-notes (ZNU5) on Wednesday closed up +6.5 ticks, and the 10-year T-note yield fell -2.4 bp to 4.238%.
T-notes recovered from early losses on Wednesday and rallied to a 1.5-week high, and the 10-year T-note yield fell to a 1.5-week low of 4.234%. Short covering emerged in T-notes to push prices higher after New York Fed President Williams said that at some point, it will be appropriate for us to move rates down, as we are still in a "modestly restrictive" stance on policy.
T-notes initially moved lower on Wednesday due to rising inflation expectations, following the 10-year breakeven inflation expectations rate's rise to a 6-month high of 2.456%. Weak demand for the Treasury's $70 billion auction of 5-year T-notes on Wednesday was also bearish for prices, as the auction had a bid-to-cover ratio of 2.36, below the 10-auction average of 2.38. In addition, T-notes are under pressure due to President Trump's move to fire Fed Governor Cook, which exacerbates investor concerns about the Fed's independence and fuels inflation fears if politics forces interest rates below the neutral rate.
European government bond yields on Wednesday moved lower. The 10-year German bund yield fell to a 1.5-week low of 2.686% and finished down -2.3 bp to 2.700%. 10-year UK gilt yield fell -0.5 bp to 4.736%.
The German Sep GfK consumer confidence survey unexpectedly fell -1.9 to a 5-month low of -23.6, weaker than expectations of no change at -21.5.
Swaps are discounting the chances at 3% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
MongoDB (MDB) closed up more than +37% to lead software stocks higher after reporting Q2 adjusted EPS of $1.08, well above the consensus of 65 cents, and raising its 2026 adjusted EPS forecast to $3.64-$3.73 from a previous forecast of $2.94-$3.12, stronger than the consensus of $3.20. Also, Atlassian (TEAM) closed up more than +4% to lead gainers in the Nasdaq 100, and Salesforce (CRM) closed up more than +2% to lead gainers in the Dow Jones Industrials. In addition, Datadog (DDOG) closed up more than +4%, Cloudflare (NET) closed up more than +3%, and Snowflake (SNOW) closed up more than +2%.
Kohl's (KSS) closed up more than +23% after reporting Q2 EPS of $1.35, well above the consensus of 31 cents, and forecasting full-year EPS of 50 cents-80 cents, better than the consensus of 49 cents.
nCino (NCNO) closed up more than +13% after reporting Q2 subscription revenue of $130.8 million, better than the consensus of $125.6 million, and raising its 2026 subscription revenue estimate to $513.5 million-$517.5 million from $507 million-$511 million.
American Eagle Outfitters (AEO) closed up more than +8% after releasing a collaboration with Travis Kelce's AE x Tru Kolors clothing brand in an attempt to capitalize on Taylor Swift's popularity.
Elanco Animal Health (ELAN) closed up more than +3% after S&P Dow Jones Indices announced the company will replace Sarepta Therapeutics in the S&P MidCap 400 before the opening of trading on Tuesday, September 2.
Dynatrace (DT) closed up more than +3% after Oppenheimer initiated coverage of the stock with a recommendation of outperform and a price target of $65.
Okta (OKTA) closed up more than +1% after reporting Q2 revenue of $728 million, stronger than the consensus of $696.9 million, and raising its full-year revenue estimate to $2.88 billion-$2.89 billion from a previous estimate of $2.85 billion-$2.86 billion, above the consensus of $2.86 billion.
J M Smucker (SJM) closed down more than -4% after reporting Q1 net sales of $2.11 billion, below the consensus of $2.12 billion.
SBA Communications (SBAC) closed down more than -4% after Bank of America downgraded the stock to neutral from buy.
Williams-Sonoma (WSM) closed down more than -2%, despite reporting better-than-expected Q2 revenue, when it said it expects its outlook to be pressured by incremental tariff costs.
PayPal Holdings (PYPL) closed down nearly 1% after the Suddeutsche Zeitung reported that several banks had blocked direct debits in the wake of payments that appeared to be suspicious or fraudulent.
Earnings Reports(8/28/2025)
Affirm Holdings Inc (AFRM), Autodesk Inc (ADSK), Bath & Body Works Inc (BBWI), Best Buy Co Inc (BBY), Brown-Forman Corp (BF/B), Burlington Stores Inc (BURL), Dell Technologies Inc (DELL), Dick's Sporting Goods Inc (DKS), Dollar General Corp (DG), Elastic NV (ESTC), Gap Inc/The (GAP), Hormel Foods Corp (HRL), Marvell Technology Inc (MRVL), Ollie's Bargain Outlet Holding (OLLI), SentinelOne Inc (S), Ulta Beauty Inc (ULTA).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

S&P 500 Posts a Record High on Nvidia Earnings Optimism

Williams-Sonoma(NYSE:WSM) reported fiscal 2025 second-quarter earnings on Tuesday, Aug. 27, noting a 3.7% comparable sales increase and an operating margin of 17.9% with positive comps across all brands. Earnings per share grew nearly 20% year over year to $2, and the company raised full-year revenue guidance while maintaining operating margin guidance due to doubling tariff pressures.
AI adoption accelerates operational gains at Williams-Sonoma
The company's vertically integrated model and proprietary data infrastructure are enabling measured deployment of artificial intelligence (AI) across customer service, supply chain, and back-office automation. Early AI initiatives include customer-facing service tools and next-generation digital design utilities, supporting improved conversion and measurable cost savings.
"AI is not just a future opportunity for us; it is delivering results today. We believe it positions Williams-Sonoma, Inc. to lead our industry in applying AI with both creativity and discipline. AI is not just a future opportunity for us. It is delivering results today, and we believe it positions Williams-Sonoma to lead our industry in applying AI with both creativity and discipline."
-- Laura Alber, Chief Executive Officer
This rapid, ROI-positive AI adoption differentiates the company from most specialty retailers and supports its long-term margin expansion and customer experience leadership.
Tariff volatility limits margin upside for Williams-Sonoma
Full-year operating margin guidance remains at 17.4% to 17.8%, unchanged despite a top-line guidance raise, due to the company absorbing a sharp increase in incremental tariff rates (from 14% in the first quarter of fiscal 2025 to 28% as of the second quarter ended Aug. 3, 2025). The average incremental tariff rate across major sourcing countries doubled, with varied rates for China (30%), India (50%), Vietnam (20%), and others.
"At our Mayearnings call our incremental tariff rate was 14%. As of today's call, it has doubled to 28%. This includes the additional 30% China tariffs, 50% India tariff, 20% Vietnam tariff, an average 18% tariff on the rest of the world, as well as the 50% steel and aluminum tariffs and the 50% copper tariff. We believe the strength of our operating model combined with the six-point mitigation plan that Laura shared with you enables us to maintain our guidance despite the doubling of tariffs since our lastearnings call"
-- Jeff Howie, Chief Financial Officer
Maintaining profitability against this external shock signals margin resilience and reinforces the value of the company’s flexible sourcing network and six-point cost mitigation strategy.
Emerging brands, B2B, and innovation drive above-industry growth
While industry home furnishing sales declined, the company delivered broad-based positive comps, underscored by double-digit growth in Rejuvenation (its seventh consecutive quarter), B2B, and emerging brands such as Mark and Graham and Green Row. Strategic category expansion, proprietary product launches, and exclusive collaborations sustained this outperformance.
"Our B2B business remains an important part of our growth strategy. B2B grew 10% in Q2, with both trade and contract performing. We continue to build a loyal, expanding client base across multiple industries by leveraging our design expertise and commercial-grade product range. Our emerging brands, including Rejuvenation, Mark and Graham, and Greenrow, together also continue to grow double digits. We have a proven ability to build and scale brands, and we are particularly excited about Rejuvenation, which drove its seventh consecutive quarter of double-digit comps in Q2."
-- Laura Alber, Chief Executive Officer
Diversified growth engines beyond core retail bolster long-term sales durability and reinforce the company’s leadership in scaling niche concepts into major profit contributors.
Looking Ahead
Management raised full-year comparable brand revenue guidance to 2% to 5% growth but reiterated operating margin guidance at 17.4% to 17.8%, explicitly incorporating doubled tariff rates and related mitigation actions. Capital expenditure is projected at $250 million to $275 million, with 85% allocated to e-commerce, retail optimization, and supply chain investments. The company maintains long-term guidance of mid- to high-single-digit revenue growth and mid- to high-teen operating margins, based on sustained brand momentum and continued execution despite macro and policy uncertainty.
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This article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Williams-Sonoma. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Williams-Sonoma Raises Outlook on AI

Williams-Sonoma Inc. WSM reported results for the second-quarter fiscal 2025 (ended Aug. 3), with earnings and net revenues beating the Zacks Consensus Estimate and increasing year over year.
Following the earnings release, shares of this multi-channel specialty retailer of premium quality home products moved up 4.1% in today’s pre-market trading session.
The quarter’s performance was driven by positive comps in both furniture and non-furniture, and strong performance in its retail and ecommerce channels. Robust trends led to the company raising its fiscal 2025 guidance.
With a strong omnichannel platform and infrastructure, going forward, the company expects to beat its expectations and multiply growth across its brands, despite macro challenges.
WSM’s Earnings, Revenues & Comps Discussion
The company reported earnings of $2 per share, which beat the Zacks Consensus Estimate of $1.79 by 11.7%. In the prior-year quarter, it reported earnings per share (EPS) of $1.74.
Net revenues of $1.84 billion also topped the consensus mark of $1.82 billion by 1.1% and grew 2.8% year over year.
Williams-Sonoma, Inc. Price, Consensus and EPS Surprise
In the quarter, comps were up 3.7% against a negative 3.3% in the year-ago period.
Comps at Williams-Sonoma increased 5.1% against a 0.8% decline reported in the year-ago quarter. Comps at West Elm gained 3.3% against a 4.8% decline reported in the year-ago quarter. Pottery Barn Kids and Teens comps grew 5.3% compared with 1.5% reported in the year-ago quarter. On the other hand, Pottery Barn comps inched up 1.1% against a 7.1% decline reported in the year-ago quarter.
Operating Highlights of Williams-Sonoma
The gross margin was 47.1% (up from our projection of 44.3%), which expanded 220 basis points (bps) year over year. The increase was due to higher merchandise margins and supply-chain efficiencies.
Selling, general and administrative expenses were 29.2% of net revenues (above our projection of 29%), reflecting a decline of 20 bps year over year due to lower advertising and general expenses, partially offset by higher performance-based incentive compensation.
The operating margin expanded 240 bps from the year-ago figure to 17.9% for the quarter. Our model predicted an operating margin of 15.3% in the quarter.
Williams-Sonoma’s Financials
As of Aug. 3, 2025, Williams-Sonoma reported cash and cash equivalents of $985.8 billion, up from $1.21 billion at the fiscal 2024-end.
Net cash from operating activities totaled $401.7 million in the first six months of fiscal 2025 compared with $473.3 million a year ago. This allowed the company to return nearly $280 million to its shareholders through $199 million in stock repurchases and $81 million in dividends.
WSM Raises Fiscal 2025 Guidance
Looking ahead, fiscal 2025 will be a 52-week year compared with 53 weeks in fiscal 2024. WSM now projects annual net revenues in the range of +0.5% to +3.5% (from -1.5% to +1.5%), with comparable brand revenue growth now expected to be between +2.0% and +5.0% (from flat to +3.0%).
The company expects incremental tariff costs to impact net revenues, including the additional tariffs on China of 30%, India of 50%, Vietnam of 20%, an average tariff on the rest of the world of 18%, as well as the steel and aluminum tariff of 50% and the copper tariff of 50%.
Operating margin guidance still stands between 17.4% and 17.8%.
Over the long term, the company anticipates mid-to-high single-digit net revenue growth and operating margins in the mid-to-high teens.
WSM’s Zacks Rank & Recent Retail-Wholesale Releases
Williams-Sonoma currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lowe’s Companies, Inc. LOW posted second-quarter fiscal 2025 results with year-over-year growth in both the top and bottom lines. While revenues came in just shy of the Zacks Consensus Estimate, earnings surpassed the same.
The Mooresville, NC-based home improvement retailer returned to positive comparable sales during the quarter, with a 1.1% increase in comparable sales as both Pro and DIY customers contributed despite a challenging start to the quarter from the weather. Management of Lowe’s also updated its full-year outlook following the completion of the Artisan Design Group (“ADG”) acquisition. Total sales are now projected between $84.5 billion and $85.5 billion, up from the prior range of $83.5-$84.5 billion.
The Home Depot Inc. HD has reported second-quarter fiscal 2025 results, wherein both the sales and earnings missed the Zacks Consensus Estimate. However, both metrics improved year over year. Also, comparable sales increased year over year.
Home Depot is confident about its initiatives to strengthen the business. Management highlighted continued momentum in smaller home-improvement projects and reiterated its focus on building the best interconnected experience for customers and growing share, while reaffirming fiscal 2025 guidance. It anticipates sales to increase 2.8% year over year, with adjusted EPS expected to fall 2%.
Brinker International, Inc. EAT reported fourth-quarter fiscal 2025 results, with both earnings and revenues surpassing the Zacks Consensus Estimate and increasing on a year-over-year basis. Revenues beat the consensus estimate for the sixth consecutive quarter.
Chili's performance catalyzed the company's quarterly results. The growth was driven by the strong marketing ideas, simpler menu items and increased traffic. A key factor in Chili’s revival was focusing on the core elements that originally made the brand great and finding ways to make those strengths relevant for today’s customers. In fiscal 2026, Brinker anticipates total revenues to be in the range of $5.60-$5.70 billion, with adjusted EPS in the range of $9.90-$10.50.
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WSM Stock Up on Q2 Earnings & Revenue Beat, FY25 View Up

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Williams Sonoma WSM Q2 2025 Earnings Transcript

In early trading on Wednesday, shares of Datadog topped the list of the day's best performing components of the S&P 500 index, trading up 2.4%. Year to date, Datadog has lost about 9.5% of its value.
And the worst performing S&P 500 component thus far on the day is J.M. Smucker, trading down 6.9%. J.M. Smucker is lower by about 6.5% looking at the year to date performance.
Two other components making moves today are Williams Sonoma, trading down 1.7%, and Albemarle, trading up 2.1% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

S&P 500 Movers: SJM, DDOG

For the quarter ended July 2025, Williams-Sonoma (WSM) reported revenue of $1.84 billion, up 2.7% over the same period last year. EPS came in at $2.00, compared to $1.74 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.82 billion, representing a surprise of +1.14%. The company delivered an EPS surprise of +11.73%, with the consensus EPS estimate being $1.79.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Williams-Sonoma performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Comparable store sales - Total - YoY change: 3.7% versus the five-analyst average estimate of 1.7%.
Number of stores - Williams-Sonoma: 154 versus the four-analyst average estimate of 154.
Number of stores - West Elm: 119 versus the four-analyst average estimate of 120.
Number of stores - Pottery Barn: 181 compared to the 179 average estimate based on four analysts.
Number of stores - Rejuvenation: 11 compared to the 12 average estimate based on four analysts.
Number of stores - Total: 509 versus 509 estimated by four analysts on average.
Number of stores - Pottery Barn Kids: 44 versus 44 estimated by four analysts on average.
Revenue- Pottery Barn: $724.58 million compared to the $732.61 million average estimate based on three analysts. The reported number represents a change of -0.2% year over year.
Revenue- Williams-Sonoma: $249.05 million versus the three-analyst average estimate of $244 million. The reported number represents a year-over-year change of +3.8%.
Revenue- Pottery Barn Kids and Teen: $286.75 million compared to the $264.14 million average estimate based on three analysts. The reported number represents a change of +10.7% year over year.
Revenue- West Elm: $468.55 million compared to the $464.29 million average estimate based on three analysts. The reported number represents a change of +2.1% year over year.
Revenue- Other: $107.83 million versus the two-analyst average estimate of $100.42 million. The reported number represents a year-over-year change of +3.7%.
Shares of Williams-Sonoma have returned +5.8% over the past month versus the Zacks S&P 500 composite's +1.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Williams-Sonoma (WSM) Reports Q2 Earnings: What Key Metrics Have to Say

(RTTNews) - While reporting financial results for the second quarter on Wednesday, luxury home furnishing retailer Williams-Sonoma Inc. (WSM) raised its revenue guidance for the full-year 2025, reflecting higher net revenue trends.
For fiscal 2025, the company now expects net revenue growth of 0.5 to 3.5 percent, with comparable brand revenue growth of 2 to 5 percent.
Previously, the company expected net revenue between a decline of 1.5 percent and a growth of 1.5 percent, with comparable brand revenue in the range of flat to 3.0 percent.
On average, 19 analysts polled expect the company to report revenue decline of 0.53 percent to $7.75 per share for the year.
Over the long term, the company continues to expect mid-to-high single-digit annual net revenue growth with an operating margin in the mid-to-high teens.
The company it expects that the incremental flow through from its higher net revenues will be pressured by incremental tariff costs. These costs include the additional tariffs on China of 30%, India of 50%, Vietnam of 20%, an average tariff on the rest of the world of 18%, as well as the steel and aluminum tariff of 50% and the copper tariff of 50%.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Williams-Sonoma Boosts FY25 Outlook - Update

Key Points
beat consensus GAAP estimates for Q2 FY2025, as all four major brands posted positive comparable sales growth.
Gross and operating margins (GAAP) improved sharply, with diluted earnings per share (GAAP) up nearly 20% to $2.00.
Management raised full-year revenue guidance but warned of higher tariff costs and noted a 17.7% increase in inventory.
Williams-Sonoma (NYSE:WSM), the multi-brand home furnishings retailer behind Pottery Barn, West Elm, and its namesake kitchenware line, reported results on August 27, 2025. The company posted GAAP revenue of $1.84 billion, up 2.7 % from the prior year and surpassing Wall Street’s GAAP expectation of $1,828.88 million. Diluted earnings per share (GAAP) were $2.00, nearly 20 % higher than last year and well above consensus estimates. profit margins (GAAP operating margin) expanded despite ongoing global tariff pressures. Williams-Sonoma also raised its full-year guidance for revenue growth, but highlighted concerns around elevated inventory levels and escalating tariff costs. Overall, the quarter showed continued momentum and resilience, but management flagged near-term margin risks stemming from tariffs and supply chain strategy.
Metric
Q2 2025
Q2 2024
Y/Y Change
Diluted EPS
$2.00
$1.67
19.8%
Revenue
$1,836.8 million
$1,788.3 million
2.7%
Operating Margin
17.9%
15.5%
2.4 pp
Gross Margin
47.1%
44.9%
2.2 pp
Comparable Brand Revenue Growth
3.7%
(3.3%)
7.0 pp
Merchandise Inventories
$1,433.6 million
$1,217.7 million
17.7%
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Understanding Williams-Sonoma’s Business and Strategy
Williams-Sonoma runs a portfolio of brands that sell home furnishings, kitchenware, and décor, both online and through a network of retail stores. Its best-known banners are Pottery Barn, West Elm, Williams Sonoma, and Pottery Barn Kids & Teen. The company blends e-commerce, physical retail, and catalog sales to reach a broad range of customers across key life stages and styles.
Key areas of focus in recent years include building an omni-channel retail model, expanding its brand portfolio, and investing in supply chain efficiency. Success depends on delivering standout customer service, keeping supply chain and inventory costs in check, and maintaining high product quality and environmental standards.
Quarter in Review: Sales, Margins, and Strategic Operations
For the Net revenue (GAAP) totaled $1.84 billion, a 2.7 % year-over-year increase. as well as Wall Street consensus. Notably, all four top brands achieved positive comparable sales for the second consecutive quarter, a turnaround from declines last year. Pottery Barn saw a return to positive comp growth at 1.1%, while West Elm, the company’s brand for modern, urban furniture and décor, grew 3.3%. The Williams Sonoma brand comparable revenue grew 5.1%, and Pottery Barn Kids & Teen rose 5.3 %.
The Comparable brand revenue growth was 3.7%, which measures sales at stores and digital platforms open at least one year. Management attributed the gains to strong execution in both retail and digital channels, with supply chain reliability helping to support sales. Even so, total store count edged down to 509 from 521 in the prior year as the company continues to optimize its physical footprint.
Profitability metrics improved significantly. The Gross margin (GAAP) was 47.1%, up from 44.9% in Q2 FY2024, boosted by both higher merchandise margins and enhanced supply chain efficiency. Operating margin also widened to 17.9% (GAAP), a 2.4 percentage point increase. The selling, general, and administrative expense rate fell marginally, supported by savings in advertising and general costs. Diluted earnings per share (GAAP) rose nearly 20%, from $1.67 to $2.00, handily topping analyst expectations.
On the cost side, management directly addressed rising inventory levels, which grew 17.7% year-over-year. This was a deliberate strategy to mitigate tariff risk by building stock ahead of expected tariff hikes on goods sourced from China, India, and Vietnam. Management called out these inventory actions.
Williams-Sonoma returned $280 million to shareholders through $199 million of share repurchases and $81 million in dividends. Liquidity remains solid, with $986 million in cash and $903 million in remaining share repurchase authorization. Operating cash flow for the first half (26 weeks) of FY2025 was $401.7 million, down from $473.3 million in the prior year period, due in part to the inventory increase. The company declared a quarterly dividend, continuing a long-term trend of regular shareholder returns.
Brand Offerings, Strategic Focus, and Notable Initiatives
The company’s core brands include Pottery Barn, which targets casual, timeless home furnishings; West Elm, aimed at modern, urban consumers; Williams Sonoma, focused on premium kitchenware; and Pottery Barn Kids & Teen, which sells bedroom and study furniture for younger customers. Additional smaller brands include Rejuvenation and Mark and Graham.
In recent periods, Williams-Sonoma has concentrated on strengthening its omni-channel model. This integrates online and store experiences, offering customers versatile ways to browse, buy, and receive products. Physical stores play a dual role, serving as retail showrooms and fulfillment hubs to support digital sales. The company has kept its store count relatively steady, with some closures as part of normal optimization.
Another pillar of the strategy is supply chain efficiency. By working closely with domestic and international vendors and optimizing logistics, Williams-Sonoma aims to offset rising input costs and tariff exposures. It sources a large share of products internationally: 82% of merchandise is imported, with significant volumes from Asia. Recent quarters saw management pull forward inventory to protect against sudden changes in tariff rates.
Sustainability remains a consistent focus. The company has received industry recognition for responsible sourcing, design, and environmental programs. While this quarter’s release did not include new updates on sustainability projects, Williams-Sonoma continues to highlight its standing on lists such as Barron’s 100 Most Sustainable U.S. Companies and the Dow Jones Sustainability North America Index.
Forward Outlook and What to Watch Next
Williams-Sonoma raised its full-year guidance following the strong quarter. Net revenue is now expected to grow by 0.5 % to 3.5 % for fiscal 2025, up from a previous range that started at flat. Comparable brand revenue is guided to rise 2.0% to 5.0%. Operating margin is projected at 17.4% to 17.8%, consistent with prior guidance. Leadership emphasized that while top-line trends have improved, incremental margin gains will become harder to achieve due to rising tariff costs on goods imported from Asia and on key materials such as steel, aluminum, and copper.
No explicit changes were announced for the dividend policy this period; the company paid $81 million in dividends. Investors should continue monitoring the timing and scale of inventory unwinding, the ability of supply chain strategy to offset cost inflation, and any ongoing impacts from trade policy or tariff changes. With more than $900 million remaining in share repurchase authorization, Williams-Sonoma’s capital return program appears likely to remain in place, though future actions may depend on evolving macro and policy risks.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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Motley Fool Markets Team is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. The Motley Fool takes ultimate responsibility for the content of these articles. Motley Fool Markets Team cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends Williams-Sonoma. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	19.10 18.21
Price/Sales	2.80 0.65
P/B	9.65 1.76
P/FCF	18.88 14.46

Indicator	TTM Median
ROE	52.93 15.91
ROA	21.82 5.60
ROI	0.00 9.40
Net Worth	21.50 0.88
Quick Ratio	0.74 0.91
Current Ratio	1.44 1.44

Indicator	TTM Median
Net Profit Margin	14.60 6.42
Operating Margin	18.56 8.93
Gross Margin	46.47 38.48
Return on tangible equity	54.93 23.67

Indicator	TTM Median
EPS	1.85 0.44
EPS Forecast	1.76 0.41
Revenue	2.46B 182.00M
Gross Profit	1.11B —
EBITDA	554.00M —

Williams-Sonoma, Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

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Efficiency

Other ratios

Revenue