Williams-Sonoma Inc
Q4 2024 Earnings
Q4 had no one-time items; however, the GAAP and non-GAAP Q4 diluted EPS are identical at $3.28 as there were no adjustments in Q4 FY2024. The 14th week in Q4 contributed an estimated 510bps to revenue growth and 60bps to operating margin.
Market Reaction
S&P 500 over the same 30 days: −9.39%.
Did WSM Beat Earnings? Q4 2024 Results
Williams-Sonoma closed out fiscal 2024 with a notably strong fourth quarter, as GAAP diluted EPS of $3.28 beat the $2.94 consensus estimate by 11.48% and revenue of $2.46 billion topped expectations by 4.59%, rising 8.0% year over year. The headline driver was a record Q4 operating margin of 21.5%, up 140 basis points from the prior year, fueled by occupancy leverage, higher merchandise margins, and supply chain efficiencies; notably, the quarter included a 14th week that management estimates contributed roughly 510 basis points to revenue growth and 60 basis points to operating margin. West Elm posted a 4.2% comparable gain and the Williams-Sonoma brand grew comps 5.7%, partially offsetting a modest 0.5% decline at Pottery Barn. Looking ahead, management guided fiscal 2025 net revenues in the range of -1.5% to +1.5% against the prior 53-week year, with comparable brand revenue expected flat to +3.0% and operating margin between 17.4% and 17.8%; the company also framed tariff pressures as a potential competitive advantage, citing its supply chain flexibility and ongoing sourcing diversification away from China.
- Comparable brand revenue growth of +3.1% in Q4, above expectations
- Occupancy leverage of +80bps driving gross margin expansion
- Higher merchandise margins of +40bps in Q4
- Supply chain efficiencies of +10bps in Q4
- Strong improvement in both retail and online furniture sales
- Standout seasonal offerings and impactful collaborations
- Extra (14th) week contributed estimated +510bps to revenue growth and +60bps to operating margin
- SG&A rate improvement of 10bps despite higher incentive compensation and advertising
“We are proud of our strong finish to 2024. In Q4, our comp came in above expectations at positive 3.1%. We exceeded profitability estimates with an operating margin of 21.5% and earnings per share of $3.28. This success was fueled by the strength of our operating model, our standout seasonal offerings, our impactful collaborations, and a strong improvement in both retail and online furniture sales. On the full year, our comp ran down 1.6%. We delivered a record annual operating margin of 17.9% with full-year earnings per share of $8.50.”
Williams Sonoma CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2025 (52 weeks), Williams-Sonoma expects annual net revenues in the range of -1.5% to +1.5% versus fiscal 2024 (reflecting the 53rd-week headwind), with comparable brand revenue growth of flat to +3.0% on a 52-week versus 52-week basis. Operating margin is expected between 17.4% and 17.8%, inclusive of the 20bps impact from the 53rd week in fiscal 2024. 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.
WSM YoY Financials
WSM Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.