Williams-Sonoma Shares Drop Amid Cautious Revenue Outlook
Stock Performance Overview
On Wednesday, shares of Williams-Sonoma Inc. (WSM) fell approximately 5%, continuing a decline throughout 2025. This decrease follows the release of the company’s latest financial outlook, which projected potential sales declines overshadowing stronger-than-anticipated fourth-quarter results.
Fourth Quarter Earnings Report
For the fourth quarter, Williams-Sonoma reported adjusted earnings per share (EPS) of $3.28, considerably above analysts’ expectations of $2.93. Revenue for the quarter reached $2.46 billion, exceeding analyst forecasts, which predicted $2.35 billion.
Future Revenue Expectations
Looking ahead, the company indicated that total revenue for the current fiscal year is expected to fluctuate within 1.5% in either direction. Additionally, same-store sales are anticipated to remain steady or grow by 3%. This forecast falls short of Wall Street’s expectations, which had anticipated a slight growth in same-store sales at 1.53%, according to data from Visible Alpha.
Market Conditions and Company Strategy
Investors are expressing concern about a tentative U.S. consumer landscape, which poses challenges for economic growth. CEO Laura Alber emphasized a commitment to pursuing growth in this unpredictable environment, stating, “We have been, and will continue to be, focused on returning to growth.” In a conference call, Alber acknowledged the current macroeconomic uncertainties while stressing the company’s focus on controllable elements.
Year-to-Date Stock Performance
Despite recent struggles, Williams-Sonoma’s shares have experienced a 12% decline for the year. However, when considering a longer time frame, the stock has appreciated approximately 11% over the past twelve months.
