Williams Sonoma reported a strong finish to fiscal year 2025 with positive comparable brand revenue growth and improved operating margins, driven by strong consumer demand and effective execution. The company is confident in its competitive advantages and plans to accelerate growth and drive earnings in fiscal year 2026.
Fourth quarter comparable brand revenue increased 3.2%, with total net revenues of $2.36 billion.
positiveFiscal year 2025 comparable brand revenue increased 3.5%, with total net revenues of $7.81 billion.
positiveRecord diluted EPS for fiscal year 2025 of $8.84, a 0.6% increase year-over-year.
positiveQuarterly dividend increased by 15% to $0.76 per share.
positiveMerchandise inventories increased 9.8% year-over-year to $1.5 billion in Q4 FY2025, driven by approximately $80 million in incremental tariff costs.
attentionQ4 FY2025 gross margin decreased 40bps to 46.9% due to lower merchandise margins (-170bps) and occupancy deleverage (-80bps), partially offset by favorable inventory results and supply chain efficiencies.
attentionQ4 FY2025 SG&A rate increased 80bps to 26.6% driven by higher general expenses.
attentionQ4 FY2025 operating margin decreased 120bps to 20.3% compared to the prior year, partly due to the extra week in Q4 FY2024.
attentionFiscal year 2025 operating margin decreased 50bps to 18.1% compared to the prior year.
attentionGuidance for fiscal year 2026 operating margin is between 17.5% to 18.1%, which is flat to a slight decrease compared to FY2025's 18.1%.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Pottery Barn | N/A | — | — | — |
West Elm | N/A | — | — | — |
Williams Sonoma | N/A | — | — | — |
Pottery Barn Kids and Teen | N/A | — | — | — |
Other | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
We are proud of our strong finish to 2025. In Q4, our comp came in at +3.2%, and we delivered an operating margin of 20.3% with earnings per share of $3.04.
Normalizing for the 53rd week last year and the tariff impact this year, we delivered substantial operating margin improvement versus last year.
As we look forward to 2026 and beyond, we are confident in our competitive advantages that have allowed us to take market share, and our focus is on widening that advantage.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.