Williams-Sonoma, Inc. announced its financial results for the second quarter ended 3 August 2025, reporting robust revenue growth and strong profitability across its portfolio of brands.
© Williams Sonoma
The company recorded a comparable brand revenue increase of 3.7%, with all brands delivering positive comps. Gross margin expanded to 47.1%, up 220 basis points year-on-year, driven by higher merchandise margins (+190bps) and supply chain efficiencies (+30bps). Operating income reached $328 million, with an operating margin of 17.9%, up 240 basis points. Diluted earnings per share were $2.00, reflecting a growth of 19.8% versus the prior year.
Laura Alber, President and Chief Executive Officer, said:
"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. Additionally, we exceeded profitability estimates with an operating margin of 17.9% and earnings per share of $2.00 with earnings growth of nearly +20%. This growing outperformance was driven by positive comps in both furniture and non-furniture, and strong performance in our retail and ecommerce channels; and has allowed us to raise our guidance on the top-line and reiterate our guidance on the bottom-line, despite continued macroeconomic uncertainty and the tariff environment."
Alber added:
"Across the company – from our supply chain and care center to our brands and retail stores – we are proud of our strong execution and outperformance. We have a powerful portfolio of brands, serving a range of categories, aesthetics, and life stages and we have built a strong omni-channel platform and infrastructure, which positions us well for the next stage of growth."
Highlights from Q2 2025 include:
- Net revenues of $1.84 billion and total comparable brand revenue growth of 3.7%.
- Merchandise inventories up 17.7% to $1.4 billion, strategically accelerated to mitigate higher tariff costs.
- Strong liquidity with $986 million in cash and $283 million in operating cash flow, supporting $280 million in stockholder returns, including $199 million in stock repurchases and $81 million in dividends.
Looking ahead, Williams-Sonoma has raised its 2025 net revenue guidance to reflect stronger sales trends, projecting annual net revenues to increase 0.5% to 3.5%, with comparable sales growth of 2% to 5%. The company expects incremental tariff costs to pressure flow-through to earnings but has reiterated guidance on operating margin, forecasting 17.4% to 17.8% for the year.
Williams-Sonoma operates a portfolio of internationally recognised brands, including Williams Sonoma, Pottery Barn, West Elm, and Rejuvenation, across e-commerce, catalogue, and retail channels in the U.S., Canada, Australia, and the U.K., alongside unaffiliated international franchise stores.
More information:
Williams-Sonoma
www.ir.williams-sonomainc.com
