Williams-Sonoma Inc (NYSE:WSM) stock fell 1.69% (As on March 19, 11:43:01 AM UTC-4, Source: Google Finance) after the company reported mixed results for the fourth quarter of fiscal 2025. In the quarter, comps were up 3.2% compared with 3.1% in the year-ago period. The analyst model expected comps to be up 3% year over year. Comps at Williams-Sonoma (namesake brand) grew 7.2% compared with 5.7% reported in the year-ago quarter. Comps at West Elm gained 4.8% compared with 4.2% reported in the year-ago quarter. Pottery Barn Kids and Teens comps grew 4% compared with 3.5% reported in the year-ago quarter. On the other hand, Pottery Barn comps inched down 2.3% compared with 0.5% decline reported in the year-ago quarter. As of Feb. 1, 2026, Williams-Sonoma reported cash and cash equivalents of $1.02 billion, down from $1.21 billion at the fiscal 2024-end. Net cash from operating activities totaled $1.31 billion in the fiscal 2025 compared with $1.36 billion a year ago.

Moreover, the gross margin was 46.9% (down from the projection of 48.2%), which contracted 40 basis points (bps) year over year. The downside was due to lower merchandise margins and occupancy deleverage, partially offset by favorable physical inventory and supply-chain efficiencies. The operating margin contracted 120 bps from the year-ago figure to 20.3% for the quarter.

WSM in the fourth quarter of FY 25 has reported the adjusted earnings per share of $3.04, beating the analysts’ estimates for the adjusted earnings per share of $2.89, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue decline of 4.3 percent to $2.36 billion in the fourth quarter of FY 25, missing the analysts’ estimates for revenue of $2.40 billion.

The company continues to project annual net revenues between +0.5% and +3.5%, with comparable brand revenue growth between +2% and +5%. Operating margin is now expected between 17.8% and 18.1% (from the 17.4-17.8% range expected earlier), which compares unfavorably with 18.5% reported in fiscal 2024. The revised outlook considers the new Section 232 tariffs on furniture, the revised additional tariffs on China of 20%, India of 50% and Vietnam of 20%, average tariffs on the rest of the world of 18%, the steel and aluminum tariff of 50% and the copper tariff of 50%. WSM projects annual net revenues between +2.7% and +6.7%, with comparable brand revenue growth expected between +2% and +6%. Over the long term, the company expects mid-to-high single-digit annual net revenue growth, with operating margins in the mid-to-high teens.