Williams-Sonoma (WSM) AI Stock Analysis

• Market Cap: $25.06B
• Dividend Yield: 1.23%
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 23.1
• Beta (1Y): 1.43
• Revenue Growth: 1.64%
• EPS Growth: 8.57%
• Country: US
• Employees: 19,600
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Specialty Retail
• EPS (TTM): 1.56
• Shares Outstanding: 122,998,060
• 10 Day Avg. Volume: 1,327,849
• 30 Day Avg. Volume: 1,251,113
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 2.62
• Enterprise Value/Gross Profit: 5.66
• Enterprise Value/Ebitda: 12.52
• 1Y Price Target: $188.07
• Price Target Upside: -5.78% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 78 Outperform
• Price Target: $215.00 ▲(7.72% Upside)

Williams-Sonoma's solid financial performance and positive earnings call sentiment are the most significant strengths, supporting a strong overall stock score. While technical indicators show bullish momentum, overbought signals and a high P/E ratio present cautionary notes. Recent corporate events further bolster the company's strategic positioning.

Positive Factors

Business Growth

Williams-Sonoma reported a sequential improvement in comparable sales with all brands positive and business-to-business sales increasing by 8% year-over-year.

Financial Management

Williams-Sonoma is leveraging its strong free cash flow, pristine balance sheet, and prudent cost management to invest in technology and supply chain to widen its advantage.

Market Position

The company is well positioned in the increasingly 'winner-take-most' market.

Negative Factors

Cost Pressures

The gross margin declined due to lower merchandise margins driven by higher input costs such as increased ocean freight and tariff mitigation expenses.

Market Uncertainty

The neutral rating is reiterated due to uncertainty in tariff and macroeconomic environments, despite market share gains and strong operating margins.

Williams-Sonoma Business Overview & Revenue Model

Company Description

Williams-Sonoma, Inc. (WSM) is a prominent American consumer retail company specializing in high-quality home products. The company operates a portfolio of well-known brands, including Williams-Sonoma, Pottery Barn, West Elm, and more, offering an extensive range of products such as cookware, furniture, home decor, and kitchen appliances. Headquartered in San Francisco, California, Williams-Sonoma is renowned for its commitment to quality and design, catering to a diverse customer base seeking premium home furnishings and accessories.

How the Company Makes Money

Williams-Sonoma, Inc. generates revenue primarily through the sale of its diverse range of home products across its multiple subsidiary brands. The company operates both brick-and-mortar retail locations and a robust e-commerce platform, which together form the backbone of its revenue model. Key revenue streams include direct-to-consumer sales through its online platforms and physical stores, as well as catalog sales. The company leverages its strong brand portfolio to target different segments of the home goods market, from affordable to luxury offerings. Additionally, Williams-Sonoma benefits from strategic partnerships and collaborations that enhance its product offerings and expand its market reach. Its in-house design team and global supply chain operations also contribute significantly to maintaining competitive pricing and product availability, bolstering its overall earnings.

Williams-Sonoma Financial Statement Overview

Summary

Williams-Sonoma exhibits strong financial health with solid profitability, stable cash flow, and a healthy balance sheet. Despite slight declines in revenue and assets, the company's efficient cost management and strategic financial operations position it well within the industry.

Income Statement

Williams-Sonoma has demonstrated strong profitability and revenue stability. The TTM Gross Profit Margin stands at 46.23%, and the Net Profit Margin is 14.35%, indicating efficient cost management and strong bottom-line performance. EBIT and EBITDA Margins are also solid at 18.39% and 20.90% respectively. However, revenue growth has been slightly inconsistent, with a negative trajectory in recent periods compared to the peak in 2023.

Balance Sheet

The company maintains a healthy balance sheet with an Equity Ratio of 41.92%, showcasing a strong equity position. The Debt-to-Equity Ratio is 0.63, indicating moderate leverage. Return on Equity is impressive at 51.66%, signifying effective use of shareholders' equity to generate profits. However, total assets and stockholders' equity have slightly decreased over time, indicating potential future risks if the trend continues.

Cash Flow

Williams-Sonoma exhibits robust cash flow management, with a Free Cash Flow of $1.01 billion in the TTM period. The Operating Cash Flow to Net Income Ratio is 1.12, indicating strong alignment between cash generation and profitability. Although the Free Cash Flow Growth Rate has declined due to previous high levels, the company still maintains a positive cash flow trajectory, providing flexibility for future investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.71B	7.75B	8.67B	8.25B	6.78B
Gross Profit	3.58B	3.30B	3.68B	3.63B	2.64B
EBITDA	1.66B	1.49B	1.50B	1.65B	1.13B
Net Income	1.13B	949.76M	1.13B	1.13B	680.71M
Balance Sheet
Total Assets	5.30B	5.27B	4.66B	4.63B	4.66B
Cash, Cash Equivalents and Short-Term Investments	1.21B	1.26B	367.34M	850.34M	1.20B
Total Debt	1.35B	1.39B	1.44B	1.28B	1.53B
Total Liabilities	3.16B	3.15B	2.96B	2.96B	3.01B
Stockholders Equity	2.14B	2.13B	1.70B	1.66B	1.65B
Cash Flow
Free Cash Flow	1.14B	1.49B	698.71M	1.14B	1.11B
Operating Cash Flow	1.36B	1.68B	1.05B	1.37B	1.27B
Investing Cash Flow	-221.21M	-188.26M	-353.95M	-226.25M	-168.88M
Financing Cash Flow	-1.18B	-598.31M	-1.18B	-1.49B	-343.02M

Williams-Sonoma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 199.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WSM, the sentiment is Positive. The current price of 199.6 is above the 20-day moving average (MA) of 182.66, above the 50-day MA of 170.05, and above the 200-day MA of 170.83, indicating a bullish trend. The MACD of 8.80 indicates Negative momentum. The RSI at 69.65 is Neutral, neither overbought nor oversold. The STOCH value of 83.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WSM.

Williams-Sonoma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSM	78 Outperform	$25.06B	23.07	51.10%	1.23%	1.64%	8.57%
Sector *	67 Neutral	¥265.09B	13.26	6.53%	2.53%	5.21%	-14.31%
BBY	67 Neutral	$14.25B	16.48	30.21%	5.60%	-3.23%	-28.11%
ETSY	63 Neutral	$5.55B	44.95	-39.97%	―	2.38%	-38.88%
BBWI	62 Neutral	$6.12B	7.73	-52.83%	2.73%	-0.93%	-4.07%
RH	61 Neutral	$4.08B	50.64	-38.18%	―	8.31%	14.65%
W	56 Neutral	$9.94B	―	17.86%	―	-0.89%	46.62%

Williams-Sonoma Corporate Events

Williams-Sonoma Amends Credit Agreement with Bank of America

On June 26, 2025, Williams-Sonoma, Inc. announced an amendment to its credit agreement with Bank of America, extending the maturity date of its revolving loan facility to 2030 and increasing its aggregate commitments to $600 million. This strategic financial move, which also involves transitioning to the Term SOFR standard and adjusting interest rates and fees, is expected to enhance the company’s financial flexibility and support its growth objectives, while maintaining certain covenants and guarantees from its U.S. subsidiaries.

The most recent analyst rating on (WSM) stock is a Buy with a $170.00 price target. To see the full list of analyst forecasts on Williams-Sonoma stock, see the WSM Stock Forecast page.

Williams-Sonoma Elects Directors at Annual Meeting

On June 11, 2025, Williams-Sonoma, Inc. held its 2025 Annual Meeting of Stockholders, where all director nominees were elected, and proposals regarding executive compensation and the selection of Deloitte & Touche LLP as the independent accounting firm were approved. These decisions reflect the company’s continued commitment to strong governance and financial transparency, potentially impacting its operational strategies and stakeholder confidence positively.

The most recent analyst rating on (WSM) stock is a Buy with a $170.00 price target. To see the full list of analyst forecasts on Williams-Sonoma stock, see the WSM Stock Forecast page.