Williams-Sonoma Inc. Reports Strong Q2 Financial Results

By Ahmed Jameison • Wednesday, August 27 15:32 • Permanent Link

Williams-Sonoma, Inc. has reported strong financial results for the second quarter ended August 3, 2025, compared to the same period in 2024. The company's comparable brand revenue increased by 3.7% in the second quarter. The operating margin also saw a significant expansion, increasing by 240 basis points to 17.9% compared to the previous year.

The company's gross margin stood at 47.1%, representing an increase of 220 basis points compared to the same period last year. This improvement was primarily driven by higher merchandise margins and supply chain efficiencies. The occupancy rate remained flat, with occupancy costs increasing by 2.1% to $201 million.

Selling, general, and administrative (SG&A) expenses as a percentage of revenue decreased by 20 basis points to 29.2%, mainly due to lower advertising expenses and general expenses. However, performance-based incentive compensation expenses rose. Despite the percentage decrease, SG&A expenses increased by 2.0% to $537 million compared to the previous year.

Williams-Sonoma, Inc. reported an operating income of $328 million, with an operating margin of 17.9%, marking an increase of 240 basis points compared to the same period in 2024. The company's diluted earnings per share (EPS) stood at $2.00, reflecting a growth of 19.8% compared to the second quarter of the previous year.

Additionally, the company strategically increased its merchandise inventories by 17.7% to $1.4 billion in the second quarter of 2025, including a pull forward of receipts to mitigate the impact of higher tariffs in fiscal 2025.

Furthermore, Williams-Sonoma, Inc. maintained a strong liquidity position, with $986 million in cash and $283 million in operating cash flow. The company utilized this position to return $280 million to stockholders through stock repurchases and dividends.

Looking ahead, Williams-Sonoma, Inc. raised its fiscal 2025 net revenue guidance to reflect higher net revenue trends. The company now expects annual net revenues in the range of +0.5% to +3.5%, inclusive of the impact from the 53rd week in fiscal 2024, with comparable sales in the range of +2.0% to +5.0%.

Today the company's shares have moved -0.53% to a price of $196.89. For the full picture, make sure to review WILLIAMS SONOMA INC's 8-K report.

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