Revenue Growth Remains Modest
Total revenue grew +1.2% year-over-year to $7.81B in FY2025, up from $7.71B in the prior year, indicating a stabilizing top line in a challenging home furnishings environment.
Source: 10-K Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
WSM delivered modest FY2025 revenue growth of +1.2% to $7.81B, but net income declined 3.3% to $1.09B as higher costs and SG&A pressures compressed margins, while the company returned over $850M to shareholders via buybacks.
Revenue
$7.81B
+1.24% YoY
EPS (Diluted)
$8.84
+0.57% YoY
Gross Margin
46.2%
-0.3 pts YoY
Operating Income
$1.42B
-1.01% YoY
Source: SEC XBRL
Williams Sonoma (WSM) reported FY2025 revenue of $7.81B, up 1.2% year over year. Operating margin was 18.1%, down 0.4 points from 18.5% a year earlier. Operating cash flow was $1.31B, down 3.3% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.93 | 1.83 | Beat +5.7% |
| Mar 2026 | 3.04 | 2.92 | Beat +3.9% |
| Dec 2025 | 1.96 | 1.89 | Beat +3.9% |
| Sep 2025 | 2.00 | 1.82 | Beat +9.7% |
Compiled by AI from this SEC filing
Total revenue grew +1.2% year-over-year to $7.81B in FY2025, up from $7.71B in the prior year, indicating a stabilizing top line in a challenging home furnishings environment.
Source: 10-K Income Statement
Gross margin declined slightly to 46.15% from 46.45%, while operating margin fell to 18.13% from 18.55%, driven by cost of revenue rising +1.8% and SG&A increasing +1.6% to $2.19B — both outpacing revenue growth.
Source: 10-K Income Statement & Key Ratios
Net income fell 3.3% to $1.09B, yet diluted EPS held nearly flat at $8.84 vs. $8.79 prior year (+0.6%), reflecting the benefit of ongoing share repurchases reducing the share count.
Source: 10-K Income Statement
WSM repurchased $854M in shares during FY2025, up 5.8% from $807M in the prior year, and total financing cash outflows reached $1.25B, underscoring management's commitment to returning capital to shareholders.
Source: 10-K Cash Flow Statement
Operating cash flow remained robust at $1.31B, but cash and equivalents fell 15.9% to $1.02B as the company deployed capital into buybacks and investments, with investing outflows increasing to $261M.
Source: 10-K Cash Flow Statement
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Cost of revenue grew 1.8% and SG&A rose 1.6%, both outpacing revenue growth of 1.2%, leading to gross and operating margin compression. If cost pressures persist — particularly in supply chain, labor, or occupancy — profitability could erode further.
Source: 10-K Income Statement
Cash and equivalents dropped 15.9% year-over-year to $1.02B, primarily due to aggressive share buybacks of $854M and increased investing outflows. A continued drawdown of cash could limit financial flexibility in a downturn.
Source: 10-K Balance Sheet & Cash Flow Statement
Total liabilities increased 5.4% to $3.33B while stockholders' equity declined 2.8% to $2.08B, pushing the debt-to-equity ratio to 1.60. This rising leverage could increase financial risk if earnings deteriorate.
Source: 10-K Balance Sheet & Key Ratios
WSM's home furnishings and lifestyle products are discretionary purchases, making revenue highly sensitive to consumer confidence, housing market conditions, and macroeconomic cycles. The modest +1.2% revenue growth suggests demand remains under pressure.
Source: 10-K Income Statement
WSM spent $854M on buybacks in FY2025, representing roughly 78% of net income, a pace that may be difficult to sustain if operating cash flows decline. Continued buybacks at this level while cash reserves shrink could constrain future strategic investments.
Source: 10-K Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 7.81 $B | 7.71 $B | +1.24% |
Cost of Revenue $B | 4.20 $B | 4.13 $B | +1.80% |
Gross Profit $B | 3.60 $B | 3.58 $B | +0.58% |
Operating Income $B | 1.42 $B | 1.43 $B | -1.01% |
Net Income $B | 1.09 $B | 1.13 $B | -3.25% |
EPS (Basic) $ | 8.96 $ | 8.91 $ | +0.56% |
EPS (Diluted) $ | 8.84 $ | 8.79 $ | +0.57% |
SG&A Expense $B | 2.19 $B | 2.15 $B | +1.64% |
Answers draw on this SEC filing and the data on this page