Williams-Sonoma posts stronger-than-expected first-quarter sales

Pottery Barn — Williams-Sonoma ended the quarter with $1 billion in cash. (Source: Bigstock)

By Kaycee Enerva May 23, 2025

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Williams-Sonoma delivered stronger-than-expected results in the first quarter of the fiscal year, with all brands posting positive comparable sales, and earnings rising 8.8 per cent year-over-year.

Laura Alber, president and CEO, said the performance was driven by broad-based sales growth and continued strength in profitability.

For the quarter ended May 4, comparable brand revenue rose 3.4 per cent, extending the positive trajectory seen in the fourth quarter.

The group’s operating income reached $291 million, with an operating margin of 16.8 per cent. Earnings per share came in at $1.85, up 8.8 per cent from the same period last year.

Gross margin for the quarter was 44.3 per cent. Selling, general and administrative (SG&A) expenses declined 0.6 per cent year over year to $475 million, attributed to lower advertising spend and improved employee cost leverage from stronger top-line performance and reduced incentive compensation.

Alber acknowledged macroeconomic and geopolitical uncertainties but expressed confidence in the company’s adaptability.

“Volatility is not new in our industry, and we are confident in our ability to navigate whatever lies ahead,” she added.

Williams-Sonoma ended the quarter with $1 billion in cash and generated $119 million in operating cash flow, maintaining a strong liquidity position.

The company reaffirmed its full-year fiscal outlook, projecting annual net revenue to range between a 1.5 per cent decline and a 1.5 per cent increase.

Over the long term, it expects mid-to-high single-digit annual revenue growth and operating margins. This accounts for several tariff-related costs, including a 30 per cent tariff on Chinese goods, 25 per cent tariffs on imports from Mexico and Canada, and tariffs on steel and aluminum.

Williams-Sonoma said it would revisit its forecast if there are material changes to the current tariff landscape.

Founded in 1956 by Chuck Williams, the retailer operates a portfolio of home-focused brands, including Pottery Barn, West Elm and Rejuvenation, with both physical and digital sales channels.