Williams-Sonoma Reports Strong Q3 Results

By Ahmed Jameison • Wednesday, November 19 10:23 • Permanent Link

Williams-Sonoma, Inc. has announced strong third-quarter 2025 results, with a 4.0% increase in comparable brand revenue. The operating margin for the quarter was 17.0%, up 10 basis points from the previous year, and diluted earnings per share stood at $1.96, marking a 4.8% increase year-over-year. The company also revealed a new stock repurchase authorization of $1 billion.

Some key financial highlights from the third quarter of 2025 include a gross margin of 46.1%, which increased by 70 basis points compared to the same period in the previous year. This increase was driven by higher merchandise margins and supply chain efficiencies, partially offset by higher occupancy costs. The selling, general, and administrative (SG&A) rate was 29.1%, up 60 basis points from the previous year, driven by higher performance-based incentive compensation and increased advertising expenses.

The operating income for the quarter was $319 million, resulting in an operating margin of 17.0%, a 10 basis point increase from the same period in the previous year. Additionally, merchandise inventories rose by 9.6% to $1.5 billion compared to the third quarter of the previous year, including incremental tariff costs and a strategic pull forward of receipts.

The company maintained a strong liquidity position with $885 million in cash and $316 million in operating cash flow, enabling the return of $347 million to stockholders through $267 million in stock repurchases and $80 million in dividends.

As of November 2, 2025, there was $637 million remaining under the company's September 2024 stock repurchase authorization. In November 2025, the board of directors approved a new $1 billion stock repurchase authorization.

Looking ahead, Williams-Sonoma, Inc. reiterated its full-year comparable brand revenue growth to be in the range of 2% to 5%, and raised its bottom-line guidance to an operating margin of 17.8% to 18.1%. The company also provided an outlook for fiscal 2025, expecting annual net revenues in the range of +0.5% to +3.5% and raising its guidance on operating margin to between 17.8% to 18.1%.

Following these announcements, the company's shares moved -0.31%, and are now trading at a price of $180.75. For the full picture, make sure to review WILLIAMS SONOMA INC's 8-K report.

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