Williams Sonoma (NYSE:WSM) delivered quarterly results that exceeded Wall Street expectations and raised its profitability outlook, supported by improving comparable sales and stable consumer demand across its portfolio.

The home furnishings retailer reported third-quarter earnings of $1.96 per share, ahead of analyst estimates of $1.87. Revenue came in at $1.88 billion, slightly better than the $1.86 billion consensus.

Comparable brand revenue increased 4%, marking another period of broad-based growth across all of the company’s banners.

Williams Sonoma reaffirmed its fiscal 2025 net revenue growth outlook of 0.5% to 3.5%, but raised its operating margin forecast to 17.8% to 18.1%, up from its previous target.

The company noted that its guidance incorporates recently implemented tariffs — including higher duties on imports from China, India, and Vietnam — as well as new levies on steel, aluminum, and copper.

For fiscal 2025, management expects about $35 million in interest income and an effective tax rate near 26%. The year will span 52 weeks, compared with 53 weeks in fiscal 2024, although comparable sales will be measured on a consistent 52-week basis.

Williams Sonoma’s board also authorized a new $1 billion share repurchase plan, replacing the remaining $637 million under its existing program.

Despite the earnings beat and improved margin outlook, shares slipped roughly 1.8% in Wednesday trading.

Williams-Sonoma stock price

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