Analysts See Profit Pressure For Williams-Sonoma In 2025, But Brand Strength Remains Intact
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 20 2025
0mins
Should l Buy WSM?
Source: Benzinga
Earnings Report and Analyst Reactions: Williams-Sonoma, Inc. reported a revenue growth of 8% to $2.46 billion and adjusted earnings per share of $3.28, surpassing analyst expectations. However, analysts revised their price forecasts downward due to disappointing operating margin guidance for 2025, influenced by tariff headwinds.
Market Performance and Future Outlook: Despite the challenges, analysts noted the company's strong brand performance and cost management strategies. Shares of WSM are currently down 0.24% at $165.87, with some analysts maintaining positive ratings while adjusting price targets.
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Analyst Views on WSM
Wall Street analysts forecast WSM stock price to fall
13 Analyst Rating
6 Buy
7 Hold
0 Sell
Moderate Buy
Current: 206.790
Low
175.00
Averages
203.67
High
230.00
Current: 206.790
Low
175.00
Averages
203.67
High
230.00
About WSM
Williams-Sonoma, Inc. is an omnichannel specialty retailer of products for the home. Its products, representing distinct merchandise strategies, such as Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham, and GreenRow are marketed through e-commerce Websites, retail stores and direct-mail catalogs. These brands are also part of The Key Rewards, its loyalty and credit card program that offers members benefits across the Williams-Sonoma family of brands. Williams Sonoma products offer everything for cooking, dining and entertaining, including cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture and a vast library of cookbooks. It operates in the United States, Puerto Rico, Canada, Australia and the United Kingdom, offers international shipping to customers worldwide, and has unaffiliated franchisees that operate stores in the Middle East, the Philippines, Mexico, South Korea and India.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Intensified Market Competition: The rapid advancement of AI technology raises questions about the value of enterprise software, leading investors to adopt a pessimistic view on the future of traditional software companies, especially in labor-intensive areas that may face workforce reductions due to AI adoption.
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See More
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- Personalized Bath Collection: Mark & Graham has launched a new bath textiles collection in collaboration with Sanderson, featuring five unique patterns that blend classic English design with modern personalization, enhancing daily rituals.
- Heritage and Innovation: The new collection's patterns are sourced from Sanderson's 19th-century archive, including the Fencott leaf motif influenced by historic hand-block printing and the Foraging woodland-inspired design, showcasing the brand's respect for traditional craftsmanship and innovation.
- Personalization Services: The collection offers extensive personalization options, allowing customers to choose from over 20 fonts and a dozen colorways, utilizing techniques such as embroidery, foil debossing, decals, and digital printing, transforming each product into a unique statement and enhancing customer engagement.
- Market Positioning and Strategic Significance: As part of Williams-Sonoma, Inc., Mark & Graham strengthens its leadership in the digital-first and sustainable home retail market by offering high-quality personalized products, appealing to consumers seeking individuality and uniqueness.
See More
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- Dividend Yield Expectation: The latest dividend expectation for Williams Sonoma Inc is a 1.3% annualized yield, although dividend amounts are typically influenced by company profitability fluctuations, historical dividend charts can provide investors with a reference point.
- Historical Volatility Analysis: Based on the last 250 trading days' closing prices, Williams Sonoma's annualized volatility is calculated at 42%, indicating significant price fluctuations, which necessitates careful risk assessment by investors.
- Options Strategy Consideration: When contemplating selling a covered call at a $300 strike price for January 2028, investors must weigh potential rewards against the loss of upside beyond $300, ensuring a reasonable risk-reward balance.
- Options Market Insights: While most options expire worthless, combining fundamental analysis with historical volatility allows investors to better assess the potential value and risks of options trading.
See More
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- Collaboration Launch: West Elm has partnered with children's clothing brand Pink Chicken to introduce a home collection themed around spring and Easter, aiming to bring warmth and whimsy to children's spaces while expanding brand influence.
- Product Diversity: The collection features items such as floral quilts, bunny-shaped pillows, and woven Easter baskets, priced between $22 and $79, catering to modern families' demands for quality and style, thereby enhancing market competitiveness.
- Brand Philosophy Alignment: West Elm President Day Kornbluth noted that this collaboration merges Pink Chicken's patterns with modern home design, reflecting a shared commitment to quality and style, which enhances consumer brand experience.
- Social Media Engagement: Customers are invited to join the conversation about the collaboration on social media, further strengthening the interaction between the brand and its customers, which boosts brand loyalty and market awareness.
See More
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- Trade Deal Progress: Indian Petroleum Minister stated that the US-India trade deal is in very advanced stages, which could positively impact retail companies like Williams-Sonoma (WSM), particularly in terms of exports.
- Tariff Reduction Potential: Analysts believe that if a deal is reached, WSM's effective tariff rate could decrease from 29% to 22%, representing a 25 basis point reduction, significantly lowering costs and enhancing competitiveness.
- Market Performance Recovery: WSM shares rose 0.5% in premarket trading on Tuesday and have increased over 14% year-to-date, reflecting market confidence in its future growth prospects.
- Gross Margin Pressure: Although tariff pressures are expected to impact WSM's gross margins in the coming quarters, the anticipated deal could alleviate some of these pressures by 2026, aiding the company's profitability recovery.
See More
Williams-Sonoma Officer Plans to Sell $7.26 Million in Common Stock via Form 144
Stock Sale Announcement: Officer Laura Albers plans to sell 35,000 shares of its common stock on January 15, with a total market value of approximately $7.26 million.
Reduction in Shareholding: Laura Albers has reduced her shareholding in Williams-Sonoma by 30,000 shares since November 25, 2025, with a total value of around $5.39 million.
See More
