Shares of Williams-Sonoma dropped Wednesday, extending their 2025 losses, as an outlook that raised the prospect of declining sales offset fourth-quarter results that were stronger than expected.
Williams-Sonoma (WSM) stock recently was down about 5%. The company, which operates home-furnishings stores using the company name as well as Pottery Barn, West Elm, and others, said earlier today that it expects full-fiscal-year revenue to land in the range of plus or minus 1.5%, with same-store sales coming in flat to 3%. Wall Street was looking for sales growth a bit better than flat, with same-store sales growth of 1.53%, according to Visible Alpha data.
For the fourth quarter, the company reported adjusted earnings per share (EPS) of $3.28 on revenue of $2.46 billion. Analysts polled by Visible Alpha expected $2.93 and $2.35 billion, respectively.
The results landed as investors and others are contending with signs of an increasingly wary U.S. consumer and a shaky path forward for the economy.
“We have been, and will continue to be, focused on returning to growth,” CEO Laura Alber said in a press release. In a conference call, a transcript of which was made available by AlphaSense, Alber cited an “unpredictable” macroeconomic and policy backdrop and said the company’s focus was “on what we can control.”
Shares of Williams-Sonoma are off 12% this year, though up 11% over the past 12 months.