Williams-Sonoma (WSM) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, March 18, 2026 astatine 10:52 AM CDT 52 min read

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Wednesday, March 18, 2026 astatine 10 a.m. ET

• President, Chief Executive Officer, and Director — Laura Alber

• Executive Vice President and Chief Financial Officer — Jeff Howie

• Chief Digital and Innovation Officer — Sameer Hassan

Laura Alber: Thank you, Jeremy. Good morning, everyone, and convey you for joining the call. I americium excited to speech to you contiguous astir our 4th fourth and our afloat twelvemonth 2025 results. In 2025, we delivered sustainable, profitable maturation successful a dynamic environment. This show is simply a testament to beardown user request for our distinctive products and brands and our world-class team. In Q4, our comp came successful astatine 3.2%. We drove an operating borderline of 20.3%, with net per stock of $3.04. We delivered these results contempt nary worldly changes successful the macro situation and continued unpredictability astir logistics and tariffs.

Normalizing for the 53rd week past twelvemonth and the tariff interaction this year, we delivered important operating borderline improvements versus past year. As we look guardant to 2026 and beyond, we are assured successful our competitory advantages that person allowed america to instrumentality marketplace share, and our absorption is connected widening that advantage. Just a fewer things connected Q4 earlier we walk much clip connected the twelvemonth and our outlook for 2026. In Q4 2025, we saw spot and momentum crossed our beardown portfolio of brands and successful our channels. Our retail teams drove a 4.3% comp successful the quarter, and determination was a continued acceleration successful our gift-giving brands.

Both Williams Sonoma and our Pottery Barn Children’s concern outperformed with Williams Sonoma driving a 7.2% comp and our Children’s concern driving a 4% comp, and West Elm continued to prime up the gait with a 4.8% comp. Finally, our DTC transmission was beardown owed to an improved lawsuit experience, continued personalization, and unthinkable service. Thank you to our team. They proceed to find enactment successful our manufacture crossed product, service, and disciplined execution. Turning to the afloat year, we outperformed the manufacture with a comp of 3.5%. We delivered an operating borderline of 18.1%, and full-year net per stock accrued 1% to a grounds $8.84, with the interior and outer expectations connected some the apical and bottommost lines.

And successful fact, we raised our guidance doubly during the year. Before we get into the year, fto america speech astir tariffs. The tariff scenery was uncertain and unpredictable successful 2025. We expect it volition stay that mode successful 2026. As we each know, argumentation tin displacement quickly, but arsenic you saw successful 2025, we person proven that we are resilient and susceptible of mitigation. As we look to 2026, we volition proceed to execute our mitigation strategies, which see vendor negotiations, resourcing wherever it makes sense, proviso concatenation efficiencies, outgo improvements, and prime pricing actions. We volition enactment flexible and proceed to set rapidly arsenic the tariff situation evolves.