Williams-Sonoma, Inc. (NYSE:WSM) surpassed analyst expectations for its second-quarter results, reporting adjusted earnings per share of $2.00, above the consensus estimate of $1.78. Quarterly revenue reached $1.84 billion, exceeding forecasts of $1.82 billion.
The home goods retailer achieved comparable brand revenue growth of 3.7% year-over-year, with all brands posting positive comparable sales. Its operating margin rose by 240 basis points to 17.9%, driven by stronger merchandise margins and supply chain efficiencies. Following the announcement, shares climbed 1.2%.
“We are proud to deliver strong results in the second quarter of 2025, driving a comp of +3.7% with all brands again running positive comps,” said Laura Alber, President and Chief Executive Officer. “This growing outperformance was driven by positive comps in both furniture and non-furniture, and strong performance in our retail and ecommerce channels.”
The company updated its fiscal 2025 net revenue guidance, now projecting annual net revenue growth between 0.5% and 3.5%, with comparable sales growth ranging from 2.0% to 5.0%. It maintained its operating margin guidance of 17.4% to 17.8%, despite expected tariff pressures.
Williams-Sonoma also reported diluted EPS growth of 19.8% compared with the same period last year. Gross margin improved by 220 basis points to 47.1%, while SG&A expenses as a percentage of revenue fell 20 basis points to 29.2%.
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