Williams-Sonoma (NYSE:WSM) reported better-than-expected first-quarter results on both earnings and revenue, yet shares fell around 7% intra-day today as the company maintained a cautious full-year outlook amid tariff-related cost pressures and macro uncertainty.
The home furnishings retailer posted Q1 EPS of $1.85, topping estimates by $0.11, while revenue came in at $1.73 billion, ahead of the $1.67 billion consensus. Comparable brand revenue grew 3.4%, and operating margin came in at a strong 16.8%, reflecting continued profitability resilience.
Despite the beat, investors appeared to focus on the company’s conservative full-year guidance. Williams-Sonoma reiterated expectations for flat to slightly positive net revenue growth and comparable sales ranging from flat to +3%, factoring in the extra 53rd week in fiscal 2024 and ongoing tariff-related headwinds.