Williams-Sonoma Stock Tumbles 2.14% Amid Record Volume Drop as Robust Earnings Fail to Calm Market Jitters

Williams-Sonoma (WSM) fell 2.14% on August 28, 2025, with a trading volume of $320 million, down 40.98% from the prior day. The stock’s performance reflects mixed investor sentiment amid broader market volatility and sector-specific challenges.

The company reported robust second-quarter results, with net income of $247.6 million and revenue of $1.84 billion, both exceeding expectations. Proactive inventory management, including a 17.7% increase in stockpiles to $1.4 billion, underscored its strategy to mitigate risks from proposed U.S. tariffs on imported furniture. CEO Laura Alber emphasized consistent pricing and reduced reliance on promotions to stabilize customer purchasing behavior and avoid inventory shortages.

Williams-Sonoma’s integrated online and in-store model supports hybrid shopping habits, reinforcing its competitive edge. The company raised full-year same-store sales guidance to 2-5%, driven by strong demand across furniture and non-furniture categories. However, sector-wide pressures from trade policies and economic uncertainty remain, though the company’s disciplined cost structure and brand portfolio position it as a resilient player in the home goods market.

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