Williams Sonoma Inc (WSM)

Price$232.50Cached quoteAs of 2026-09-25 18:16 UTC

AI: Overvalued

Price checkAt $235.70, the shares demand growth that looks too ambitious for a housing-sensitive retailer.

The latest completed session before the research timestamp closed at $235.70 on August 20. Earnings from the last four quarters are about $8.92 per share, making the price roughly 26.4 times earnings. Free cash flow—cash left after running and investing in the business—is about $1.09 billion, a 3.9% yield on roughly $27.8 billion of market value using the latest reported share count. Even after adding $652 million of cash, a model requiring a 10% annual return and 3% long-run growth needs about 16% yearly cash-flow growth for five years. That supports an overvalued verdict.

Big pictureSales have stabilized, but unusually high margins and housing-linked demand make long growth assumptions risky.

Fiscal 2025 revenue was $7.81 billion, only 1.2% above 2024 and still below fiscal 2022’s $8.67 billion, while operating income stayed strong at $1.42 billion. First-quarter 2026 revenue rose 4.4%, and comparable brand revenue—growth across established brand operations—rose 4.8%. However, operating margin, the share of sales left after operating costs, slipped to 16.2% from 16.8%. Net income was almost unchanged at $231 million; earnings per share rose 4.3% mainly because fewer shares were outstanding. Housing activity, credit costs, and consumer confidence can therefore make growth uneven.

Business strengthDebt-free finances and strong cash generation give management unusual room to reward shareholders.

At May 3, Williams-Sonoma held $652 million of cash and no debt. Fiscal 2025 operating cash flow was $1.31 billion; after $259 million of capital spending, free cash flow was about $1.06 billion. The company returned $854 million through buybacks and $316 million through dividends that year, while stock compensation was $107 million and shares outstanding fell about 3.5%. In the latest quarter it repurchased another $288 million at an average $178.96 per share. Buybacks have outweighed dilution, but heavy payouts helped cash fall $368 million, and repurchases near $236 create less value.

What could change the storyFaster brand growth or tariff refunds could help, while weaker margins would expose the valuation.

The strongest bull case is broad demand: every brand posted positive first-quarter comparable growth, led by West Elm at 8.5%, and management still guides fiscal 2026 revenue growth of 2.7% to 6.7% with a 17.5% to 18.1% operating margin. A $197.8 million tariff refund claim could add one-time cash if collected. The bear case is that tariff-loaded inventory and weak housing squeeze margins. Sustained comparable growth above 5% and free cash flow above $1.2 billion would strengthen the thesis; margin below 17.5% or cash flow below $1 billion would weaken it.

AI: News

First-quarter earnings beatStrong spring demand beat expectations and showed the brands can still grow despite tariff pressure.

On May 21, 2026, Williams-Sonoma reported first-quarter earnings of $1.93 per share versus about $1.80 analysts expected, with revenue of $1.81 billion and comparable brand revenue up 4.8%. The company kept its full-year outlook even though tariffs were already raising product costs. The stock closed at $191.94, up about 6.5% from $180.25 the previous day; Investing.com reported a 5.8% afternoon gain. The move is consistent with investors rewarding better-than-feared demand and profitability, though one day’s trading cannot prove a single cause.

Tariff ruling and refundA court ruling opened a possible cash recovery, but the company has not counted on receiving it.

On February 20, 2026, the U.S. Supreme Court struck down emergency-power tariffs; Reuters reported tariff-exposed retailers including Williams-Sonoma gained within a 0.5% to 2.3% range that day. Williams-Sonoma later filed, on April 20, for $197.8 million of refunds tied to those tariffs. Its May filing recorded no receivable because collection remained uncertain, and current guidance assumes no refund. Recovery would add valuable one-time cash, but it would not remove other tariffs or prove that recurring product margins have permanently improved.

Record annual earningsRecord yearly earnings confirmed strong profitability, while tariff costs kept the outlook from looking effortless.

On March 18, 2026, the company reported fiscal 2025 earnings of $8.84 per share, a record, and fourth-quarter comparable brand revenue growth of 3.2%. Fourth-quarter earnings of $3.04 beat analyst expectations near $2.90, although revenue missed estimates and merchandise margins were pressured by tariffs. The board also raised the quarterly dividend 15% to $0.76. Shares closed at $184.10 versus $182.17 the prior day, about 1.1% higher; the modest move is consistent with strong earnings being partly offset by cost and revenue concerns.

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$7.81B	$7.71B	$7.75B	$8.67B	$8.25B	$6.78B	$5.90B	$5.67B	$5.29B	$5.08B	$4.98B	$4.70B	$4.39B	$4.04B	$3.72B	$3.50B	$3.10B	$3.36B
Gross profit	$3.60B	$3.58B	$3.30B	$3.68B	$3.63B	$2.64B	$2.14B	$2.10B	$1.93B	$1.88B	$1.84B	$1.80B	$1.70B	$1.59B	$1.46B	$1.37B	$1.10B	$1.14B
Gross margin	46.15%	46.45%	42.62%	42.40%	44.05%	38.86%	36.27%	37.04%	36.50%	37.05%	37.06%	38.32%	38.84%	39.39%	39.23%	39.21%	35.56%	33.77%
Operating expenses	$2.19B	$2.15B	$2.06B	$2.18B	$2.18B	$1.73B	$1.67B	$1.67B	$1.48B	$1.41B	$1.36B	$1.30B	$1.25B	$1.18B	$1.08B	$1.05B	$981.8M	—
Operating income	$1.42B	$1.43B	$1.24B	$1.50B	$1.45B	$910.7M	$465.9M	$436.0M	$453.8M	$472.6M	$488.6M	$502.3M	$452.1M	$409.2M	$381.7M	$323.4M	$121.4M	—
Operating margin	18.13%	18.55%	16.05%	17.27%	17.62%	13.43%	7.90%	7.69%	8.57%	9.30%	9.82%	10.69%	10.30%	10.12%	10.26%	9.23%	3.91%	—
EBITDA	$1.65B	$1.66B	$1.48B	$1.71B	$1.65B	$1.10B	$653.6M	$624.8M	$636.9M	$645.8M	$656.4M	$664.5M	$601.9M	$543.6M	$512.3M	$468.0M	$273.2M	—
EBITDA margin	21.10%	21.53%	19.05%	19.74%	20.00%	16.21%	11.08%	11.02%	12.03%	12.70%	13.19%	14.14%	13.72%	13.45%	13.77%	13.36%	8.81%	—
Net income	$1.09B	$1.13B	$949.8M	$1.13B	$1.13B	$680.7M	$356.1M	$333.7M	$259.5M	$305.4M	$310.1M	$308.9M	$278.9M	$256.7M	$236.9M	$200.2M	$77.4M	$30.0M
Net profit margin	13.94%	14.59%	12.25%	13.00%	13.66%	10.04%	6.04%	5.88%	4.90%	6.01%	6.23%	6.57%	6.36%	6.35%	6.37%	5.71%	2.50%	0.89%
Basic EPSper basic share	$8.96	$8.91	$7.35	$8.29	$7.59	$4.41	$2.28	$2.05	$1.52	$1.73	$1.71	$1.65	$1.45	$1.30	$1.14	$0.94	$0.37	$0.14
Diluted EPSper diluted share	$8.84	$8.79	$7.28	$8.16	$7.38	$4.31	$2.25	$2.03	$1.51	$1.71	$1.69	$1.62	$1.41	$1.27	$1.11	$0.92	$0.36	$0.14

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈9.68%of listed shares

BlackRock, Inc.11.39M shares · Jun 30, 2026

View holders

Top 20 reported holders of WSM
Holder	% owned
BlackRock, Inc.	≈9.68%11.39M shares
Aristotle Capital Management, LLC	≈9.39%11.06M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈6.53%7.69M shares
BLACKHILL CAPITAL INC	≈6.53%7.68M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈5.27%6.2M shares
STATE STREET CORP	≈5.02%5.91M shares
GEODE CAPITAL MANAGEMENT, LLC	≈3.24%3.82M shares
FIRST TRUST ADVISORS LP	≈2.37%2.79M shares
NORGES BANK	≈1.49%1.76M shares
Invesco Ltd.	≈1.43%1.69M shares
UBS AM, a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC	≈1.39%1.64M shares
FMR LLC	≈1.37%1.62M shares
NORTHERN TRUST CORP	≈1.32%1.56M shares
DIMENSIONAL FUND ADVISORS LP	≈1.29%1.52M shares
Nuveen, LLC	≈1.26%1.48M shares
VICTORY CAPITAL MANAGEMENT INC	≈1.23%1.45M shares
Boston Partners	≈1.23%1.44M shares
MORGAN STANLEY	≈0.97%1.15M shares
UBS Group AG	≈0.97%1.14M shares
PRINCIPAL FINANCIAL GROUP INC	≈0.97%1.14M shares

Percentages use 117.75M shares of this listed class outstanding on May 17, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)122$108.99M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 15, 2026Form 4 · 10b5-1	Yearout KaralynEVP CHIEF TALENT OFFICER	SellCommon Stock	1.1K	$228.49	$254.1K	21.7K
Jun 8, 2026Form 4 · 10b5-1	Yearout KaralynEVP CHIEF TALENT OFFICER	SellCommon Stock	522	$203.07	$106.0K	22.8K
May 27, 2026Form 4 · 10b5-1	ALBER LAURAPRESIDENT & CEO	SellCommon Stock	15.0K	$200.00	$3.00M	923.5K
May 14, 2026Form 4 · 10b5-1	ALBER LAURAPRESIDENT & CEO	SellCommon Stock	400	$174.57	$69.8K	938.5K
May 14, 2026Form 4 · 10b5-1	ALBER LAURAPRESIDENT & CEO	SellCommon Stock	2.6K	$173.78	$453.4K	938.9K

Review ownership filings at SEC.gov ↗

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Williams Sonoma Inc (WSM)

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