Williams-Sonoma has closed its fiscal year on a strong note, delivering sustainable growth in a dynamic environment.
The home retailer’s comparable revenue for the quarter ended February 1 rose 3.2 per cent, with management calling it a “strong finish” to the year. Its gross margin was at 46.9 per cent, down 40 basis points year-on-year due to weaker merchandise margins and higher store costs.
Net revenues, on the other hand, fell about 4.3 per cent to $2.357 billion.
Operating income reached $478 million, with a 20.3 per cent operating margin after normalizing for last year’s extra trading week and this year’s tariff impact, marking a substantial year-on-year improvement. The additional week contributed about 60 basis points, the company noted.
Among its brands, Williams Sonoma recorded the highest comparable revenue growth at 7.2 per cent, while Pottery Barn saw a 2.3 per cent decline.
“In 2025, we delivered sustainable, profitable growth in a dynamic environment. This performance is a testament to strong consumer demand for our distinctive products and brands, and our world-class team,” said president and CEO Laura Alber.
Gross profit for the full FY25 was slightly up by 0.6 per cent to $3.603 billion, while net revenues grew 1.24 per cent, landing within the company’s expected range. Comparable revenue was up 3.5 per cent, which exceeds previous expectations. Meanwhile, net earnings dropped by 3.27 per cent to $1.088 billion.
“Our powerful portfolio of brands, strong channel execution, and growth strategies drove our results in 2025. And in 2026, we are focused on accelerating growth, delivering world-class customer service, and driving earnings,” Alber added.
The retailer expects annual net revenue growth to be in the range of +2.7 per cent to +6.7 per cent in FY26, with comparable sales within +2.0 per cent to +6.0 per cent. Operating margin is forecast to be between 17.5 per cent and 18.1 per cent.
Vicki McWilliams’ promotion to lead stores and customer care
The company has also promoted Vicki McWilliams from executive president to president of stores and customer care.
Over 19 years leading the brand’s entire store network, McWilliams drove the launch of in-home design services, applied AI to customer service, transformed the outlet business, and fueled the growth of in-store experiences and the company’s global footprint.
Alber described McWilliams as an “exceptional leader” whose deep understanding of stores and unwavering commitment to customer service make her the right person to lead the company’s retail organization.
“With Vicki as president of stores and customer care, we will continue to elevate the customer experience as part of our commitment to delivering world-class customer service,” she said.
