What is the market's earnings forecast for Williams-Sonoma next quarter?

What factors drove the changes in Williams-Sonoma's revenue and profit?

What were the key takeaways from Williams-Sonoma’s earnings call?

Did Williams-Sonoma beat or miss consensus estimates last quarter?

What is Williams-Sonoma's gross profit margin?

What guidance did Williams-Sonoma's management provide for the next earnings period?

What were the key takeaways from Williams-Sonoma's earnings call?

What does Williams-Sonoma do and what are its main business segments?

- **Revenue Resilience**: 4% Q3 comp growth vs. industry decline, with furniture and Dorm categories leading at +8.5% and +4.4%.
- **Margin Expansion**: Operating margin up 10 bps to 17%, despite $78M in tariff costs, driven by AI and supply chain efficiency.
- **AI Innovation**: Olive AI resolved 60% of chats in 5 minutes, cutting handle times by 78% and improving customer engagement.
- **Tariff Mitigation**: 6-point plan (price increases, inventory pull-forward) offset $78M in costs, but Q4 tariffs to rise 100% YoY.
- **Q4 Guidance**: Operating margin raised 40 bps to 17.8%-18.1%, with focus on full-price selling and reduced promotions.
- **Emerging Brands Growth**: Rejuvenation (+double-digit comps) and GreenRow (13 stores) driving white-space opportunity.


**【CEO Summary Section】**
- Q3 revenue grew 4% YoY, driven by positive comps across all brands and strong furniture sales despite housing market challenges.
- Operating margin expanded 10 bps to 17%, with EPS up 5% YoY to $1.96.
- AI initiatives, such as Olive (AI culinary assistant), resolved 60% of chats without human intervention, reducing handle times from 23 to 5 minutes.
- Tariff mitigation plan (price increases, inventory management) offset $78M in incremental costs.
- Emerging brands (Rejuvenation, GreenRow) delivered double-digit comps, with 13 Rejuvenation stores now open.

**【CFO Financial Commentary】**
- Gross margin improved 70 bps to 46.1%, driven by merchandise margin gains (60 bps) and supply chain efficiencies (30 bps).
- SG&A deleveraged 60 bps, with 50 bps from higher incentive comp and 20 bps from digital ad spend.
- Operating cash flow of $316M supported $68M in capex and $347M in shareholder returns (shares buybacks + dividends).
- FY25 guidance updated: operating margin raised 40 bps to 17.8%-18.1%, reflecting tariff headwinds and mitigation efforts.

**【Q&A Key Highlights】**
- **Tariff Impact**: Q4 will see higher tariff costs ($29% incremental rate vs. $14% earlier in year), but 6-point mitigation plan (price increases, full-price selling) limits margin erosion.
- **AI Efficiency**: AI reduced split shipments, improved in-stock rates, and cut out-of-market shipping costs, driving SG&A leverage.
- **Holiday Outlook**: Q4 guidance includes 2%-5% revenue growth, with focus on full-price selling and reduced promotions.
- **Supply Chain Strength**: Best-ever customer service metrics (damage-free delivery, faster fulfillment) offset $30M in tariff costs.


Williams-Sonoma, Inc. (WSM) Q3 2026 Earnings Call Transcript

- **Revenue Growth & Margin Expansion**: Q2 comp up 3.7%, operating margin 17.9%, EPS $2 (+20%).
- **AI-Driven Innovation**: AI tools boost customer service, design, and supply chain efficiency, driving sales and cost savings.
- **Tariff Resilience**: Despite doubled tariffs (28%), guidance maintained via vendor partnerships, cost control, and made-in-USA expansion.
- **Holiday Momentum**: Strong pipeline for gift categories and Dormify launch positions for Q4 growth.

**【CEO Summary Section】**
- Q2 revenue grew 3.7% YoY, with all brands posting positive comps, driven by furniture and non-furniture categories. Operating margin expanded to 17.9%, and EPS rose 20% to $2.
- Key priorities: returning to growth (e.g., 10% B2B growth, double-digit emerging brand comps), enhancing customer service (AI-powered tools, supply chain efficiency), and driving earnings through cost control.
- AI initiatives include customer service assistants, digital design tools, and supply chain optimization, contributing to measurable sales and cost savings.
- Full-year comp guidance raised to 2-5%, despite doubled tariffs (28%), due to tariff mitigation efforts (vendor concessions, resourcing, made-in-USA expansion).

**【CFO Financial Commentary】**
- Q2 net revenue: $1.84B, exceeding expectations. Gross margin improved 220bps to 47.1%, driven by merchandise margin (select price increases, full-price selling) and supply chain efficiencies.
- SG&A: 29.2% of revenue, 20bps lower YoY, with advertising spend down 80bps. Operating income grew 18% to $328M, supported by $283M in operating cash flow.
- Inventory up 17.7% YoY, including $70M strategic pull-forward at lower tariffs. Cash balance: $986M; $280M returned to shareholders via buybacks and dividends.

**【Q&A Highlights】**
- **Comp Drivers**: Momentum from newness (e.g., West Elm Kids, dorm business), channel optimization (retail +7.3%, e-commerce +2%), and B2B growth.
- **Tariff Mitigation**: 6-point plan (vendor concessions, resourcing, made-in-USA expansion) offsets 28% incremental tariffs. Guidance assumes no macro changes, but flexibility to protect growth and service.
- **Pricing Strategy**: Surgical price increases in high-value categories, balanced with innovation and quality to maintain competitiveness.
- **Holiday Outlook**: Optimism for gift-driven brands (Kids, Williams-Sonoma) and new Dormify IP launch, despite macro uncertainty.

Williams-Sonoma, Inc. (WSM) Q2 2025 Earnings Conference Call Transcript

- **Revenue Growth**: Q1 2025 comp up 3.4%, driven by furniture recovery and non-furniture category strength. FY25 guidance reiterates flat to +3% growth.
- **Margin Resilience**: Operating margin 16.8% (70bps higher YoY excluding one-time adjustments). Six-point tariff mitigation plan offsets 220bps margin headwind.
- **B2B Momentum**: 8% Q1 growth, targeting $2B+ opportunity. Emerging brands (Rejuvenation, GreenRow) deliver double-digit comps.
- **AI & Customer Service**: AI-driven personalization and supply chain efficiencies reduce returns/damages, improving on-time delivery rates.
- **Tariff Mitigation**: $60-70M inventory pull-forward to mitigate tariffs. Vendor concessions and resourcing to lower-tariff countries driving savings.

**【CEO Summary Section】**
- **Q1 2025 Results**: Revenue comp growth of 3.4%, driven by furniture sales recovery and non-furniture category strength. Operating margin of 16.8% and EPS of $1.85, exceeding expectations.
- **Strategic Initiatives**: Expansion of B2B business (8% Q1 growth), emerging brands (Rejuvenation, Mark & Graham, GreenRow) with double-digit comps, and AI-driven customer experience improvements.
- **Tariff Mitigation**: Six-point plan includes vendor cost concessions, resourcing to lower-tariff countries, and selective price increases. Guidance reiterates flat to +3% comp growth and 17.4-17.8% operating margin for FY25.

**【CFO Financial Commentary】**
- **Q1 Financials**: Net revenue $1.73B, +3.4% comp. Gross margin 44.3% (60bps lower YoY due to input costs). SG&A at 27.5% of revenue, 130bps lower YoY. Operating margin 16.8% (70bps higher YoY excluding one-time adjustments). EPS $1.85, +8.8% YoY.
- **Balance Sheet**: $1B cash, $58M capex, $165M share buybacks. Inventory +10% YoY, including $60-70M tariff mitigation pull-forward.
- **FY25 Outlook**: Flat to +3% comp growth, 17.4-17.8% operating margin. Capex $250-275M, dividend payout +16% YoY.

**【Q&A Highlights】**
- **Merchandise Margins**: 220bps decline YoY due to tariffs, offset by supply chain savings. Full-price selling penetration increased, no site-wide promotions.
- **Inventory Strategy**: Pull-forward of $60-70M in tariff-affected goods to mitigate costs. On-time delivery rates at all-time high, reducing returns and damages.
- **Tariff Mitigation Progress**: Six-point plan actions (vendor concessions, resourcing, price adjustments) expected to yield savings in future quarters.
- **B2B Growth**: Targeting $2B+ opportunity, with wins in hospitality, education, and sports/entertainment sectors.
- **Consumer Trends**: Strong demand for seasonal products (Easter, Valentine's Day) and design services, despite macroeconomic uncertainty.

Williams-Sonoma, Inc. (WSM) Q1 2025 Earnings Call Transcript

- **Record 2024 Results**: 17.9% operating margin and $8.50 EPS, with Q4 EPS of $3.28 (+20.6%).
- **2025 Guidance**: Flat to +3% comp growth, 17.4-17.8% operating margin, and 16% dividend increase.
- **Strategic Wins**: B2B >$1B in 2024, Rejuvenation double-digit growth, and West Elm Q4 +4.2% comp recovery.
- **Tariff Mitigation**: 20% China, 25% Mexico/Canada tariffs offset by vendor concessions, resourcing, and AI savings.
- **Operational Excellence**: 66% e-commerce penetration, optimized supply chain, and $1.1B free cash flow.

**【CEO Summary Section】**
- **Q4 2024 Performance**: Achieved a 3.1% comp growth, exceeding expectations, with a 21.5% operating margin and EPS of $3.28. Full-year 2024 revenue was $7.7B, with a 1.6% comp decline but a record 17.9% operating margin.
- **2025 Growth Strategy**: Guided for flat to +3% comp growth, focusing on non-furniture assortments (seasonal decor, textiles), B2B expansion (>$1B in 2024), and AI-driven customer experience improvements.
- **Brand Strengths**: Pottery Barn (+37.6% 5-year comp), Williams-Sonoma (+35.5% 5-year comp), and emerging brands like Rejuvenation (double-digit growth) led outperformance. B2B segment grew 12% in Q4.
- **Operational Excellence**: 66% of sales via e-commerce, optimized supply chain (reduced returns/damages), and 53-week year benefits ($1.1B free cash flow).

**【CFO Financial Commentary】**
- **Q4 2024 Financials**: Net revenue $2.5B (+3.1% comp), gross margin 47.3% (130bps improvement), operating margin 21.5% (140bps expansion), EPS $3.28 (+20.6%).
- **Full-Year 2024 Results**: Operating margin 17.9%, EPS $8.50 (+14.4%). FY25 guidance: 17.4-17.8% operating margin, flat to +3% comp, and $0.66 quarterly dividend (+16%).
- **Tariff Mitigation**: 20% China, 25% Mexico/Canada tariffs included in guidance. Strategies include vendor cost concessions, resourcing to low-cost countries, and AI-driven SG&A savings.
- **Capital Allocation**: $275-300M capex for e-commerce, retail, and supply chain; $1.1B share buyback authorization.

**【Q&A Key Highlights】**
- **SG&A Leverage**: Variable expenses tied to sales, AI-driven savings in call centers, and flexible ad spend. FY25 expects 17.4-17.8% margin despite tariff headwinds.
- **Consumer Trends**: Strong response to non-furniture assortments (seasonal decor, collaborations), B2B growth, and improved furniture trends due to newness and in-stock inventory.
- **Store Optimization**: 17% store closures since 2019, with relocations (e.g., Oklahoma City Pottery Barn) driving double-digit comp improvements.
- **West Elm Recovery**: Q4 +4.2% comp driven by new furniture collections, seasonal decor, and improved in-store experience. Digital photography and catalog revitalization boosted brand engagement.

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