Examining the Future: Williams-Sonoma's Earnings Outlook

Williams-Sonoma WSM will release its quarterly earnings report on Wednesday, 2025-08-27. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Williams-Sonoma to report an earnings per share (EPS) of $1.79.

The market awaits Williams-Sonoma's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Past Earnings Performance

In the previous earnings release, the company beat EPS by $0.09, leading to a 1.58% drop in the share price the following trading session.

Here's a look at Williams-Sonoma's past performance and the resulting price change:

Quarter Q1 2025 Q4 2024 Q3 2024 Q2 2024
EPS Estimate 1.76 2.93 1.78 1.59
EPS Actual 1.85 3.28 1.96 1.74
Price Change % -2.0% -1.0% -1.0% 7.000000000000001%

Tracking Williams-Sonoma's Stock Performance

Shares of Williams-Sonoma were trading at $197.96 as of August 25. Over the last 52-week period, shares are up 47.84%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Williams-Sonoma

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Williams-Sonoma.

The consensus rating for Williams-Sonoma is Neutral, derived from 9 analyst ratings. An average one-year price target of $202.56 implies a potential 2.32% upside.

Understanding Analyst Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Arhaus and Beyond, three major players in the industry, shedding light on their relative performance expectations and market positioning.

  • Analysts currently favor an Neutral trajectory for Arhaus, with an average 1-year price target of $11.58, suggesting a potential 94.15% downside.
  • Analysts currently favor an Outperform trajectory for Beyond, with an average 1-year price target of $13.0, suggesting a potential 93.43% downside.

Snapshot: Peer Analysis

Within the peer analysis summary, vital metrics for Arhaus and Beyond are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Williams-Sonoma Neutral 4.20% $765.81M 10.75%
Arhaus Neutral 15.70% $148.23M 9.55%
Beyond Outperform -29.10% $66.97M -14.08%

Key Takeaway:

Williams-Sonoma ranks highest in revenue growth among its peers. It also leads in gross profit margin. However, it has the lowest return on equity compared to its peers.

Discovering Williams-Sonoma: A Closer Look

With a retail and direct-to-consumer presence, Williams-Sonoma is a player in the $300 billion domestic home category and $450 billion international home market, focused on expanding its exposure in the B2B ($80 billion total addressable market), marketplace, and franchise areas. Namesake Williams-Sonoma (154 stores) offers high-end cooking essentials, while Pottery Barn (180) provides casual home accessories. West Elm (119) is an emerging concept for young professionals, and Rejuvenation (11) offers lighting and house parts. Brand extensions include Pottery Barn Kids and Pottery Barn Teen (44) as well as Mark & Graham and GreenRow. Williams-Sonoma also has a business-to-business team that supports projects that range from residential to large-scale commercial.

Financial Milestones: Williams-Sonoma's Journey

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Positive Revenue Trend: Examining Williams-Sonoma's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.2% as of 30 April, 2025, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Williams-Sonoma's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 13.37%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 10.75%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 4.42%, the company showcases effective utilization of assets.

Debt Management: Williams-Sonoma's debt-to-equity ratio is below the industry average at 0.63, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Williams-Sonoma visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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WSMWilliams-Sonoma Inc
$196.06-2.49%

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