Companies /Consumer Cyclical

Williams-Sonoma Inc

NYSE: WSM Specialty Retail
$227.36
▲ $4.60 (+2.07%) today
Markets closed · 6:27pm ET

Q3 2026 Earnings

Reported Nov 19, 2025, 9:03am ET · SEC source
$1.96
Beat +4.81%
EPS · est. $1.87
$1.9B
Beat +0.92%
Revenue · est. $1.9B
+6.1%
Beating market
WSM vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0Nov 19Nov 20report 9:03am ETearnings−0.8%−4.8%
−6%−3%0Nov 19Nov 20earnings−0.8%−4.8%
WSM −4.8%S&P 500 −0.8%
−6%−3%0+3%Nov 19Nov 20report 9:03am ETearnings−1.5%−4.8%
−6%−3%0+3%Nov 19Nov 20earnings−1.5%−4.8%
WSM −4.8%NASDAQ −1.5%
−6%−3%0+3%Nov 18Nov 26report 9:03am ETearnings+2.2%−1.5%
−6%−3%0+3%Nov 18Nov 26earnings+2.2%−1.5%
WSM −1.5%S&P 500 +2.2%
−6%−3%0Nov 18Nov 26report 9:03am ETearnings+1.8%−1.5%
−6%−3%0Nov 18Nov 26earnings+1.8%−1.5%
WSM −1.5%NASDAQ +1.8%
−3.39%
Day of report
−1.19%
Next session
+3.72%
One week
+9.43%
30 days

S&P 500 over the same 30 days: +3.35%.

Did WSM Beat Earnings? Q3 2026 Results

Williams-Sonoma delivered a convincing third-quarter fiscal 2025 beat, with diluted EPS of $1.96 topping the $1.87 consensus estimate by 4.61% and revenue of $1.88 billion edging ahead of expectations by 0.92% while climbing 4.6% year-over-year. The headline driver behind the solid results was broad-based brand momentum, with all four segments posting positive comparable revenue growth and the overall comparable brand revenue rate accelerating to 4.0%, ahead of management's own expectations. Gross margin expanded 70 basis points to 46.1%, supported by higher merchandise margins and supply chain efficiencies that more than offset rising occupancy costs, while operating income reached $319.14 million at a 17.0% margin. Despite the strong print, tariff headwinds remain a live concern, with analysts already trimming price targets to account for the multiple layers of import costs now baked into the company's cost structure. Looking ahead, management reiterated full-year net revenue growth guidance of +0.5% to +3.5% and raised its operating margin outlook to 17.8%-18.1%, signaling confidence that supply chain discipline can continue absorbing the tariff burden through year-end.

Key Takeaways
  • Comparable brand revenue growth of +4.0% with all brands posting positive comps
  • Gross margin expansion of 70bps driven by higher merchandise margins (+60bps) and supply chain efficiencies (+30bps)
  • Operating margin expanded 10bps to 17.0%
  • Diluted EPS growth of 4.8% year-over-year
  • Williams Sonoma brand comp strongest at +7.3%

“We are proud to deliver strong results in the third quarter of 2025 with an accelerating positive top-line comp and continued outperformance in profitability. In Q3, our comp came in above expectations at 4.0%, with another quarter of positive comps in all brands. Operating margin came in at 17.0%, expanding 10 basis points, with earnings per share of $1.96, growing 4.8% year-over-year. We are encouraged by our continued strong performance, and are confident in our outlook for Q4. We are reiterating full year comparable brand revenue growth to be in the range of 2% to 5%, and we are raising our bottom-line guidance to an operating margin of 17.8% to 18.1%.”

Williams Sonoma CEO, on the earnings call

Forward Guidance & Outlook

Williams-Sonoma reiterated fiscal 2025 net revenue guidance of +0.5% to +3.5% year-over-year (inclusive of the 53rd week impact from fiscal 2024), with comparable brand revenue growth of +2.0% to +5.0%. The company raised its operating margin outlook to 17.8%-18.1% (from a prior range). Updated guidance incorporates multiple tariff headwinds including Section 232 furniture tariffs, revised 20% additional China tariffs, 50% India tariffs, 20% Vietnam tariffs, average 18% tariffs on the rest of the world, and 50% steel/aluminum/copper tariffs. Annual interest income is expected at approximately $35 million with an effective tax rate of approximately 26.0%. Long-term, management targets mid-to-high single-digit annual net revenue growth with mid-to-high teens operating margins.

WSM YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$600.0M$1.2B$1.8B$1.8B$1.9BRevenue$841.7M$867.7MGross Profit$320.7M$319.1MOperating Income$249.0M$241.6MNet Income
$0$600.0M$1.2B$1.8BRevenueGross ProfitOperating IncomeNet Income

WSM Revenue by Segment

Pottery Barn$741.5M+1.3%
Williams Sonoma$276.4M+7.3%
West Elm$468.2M+3.3%
Pottery Barn Kids and Teen$291.4M+4.4%
Other (Rejuvenation, Mark and Graham, GreenRow, franchise)
Other$105.2M

Figures from SEC filings and company reports. Not investment advice.