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Williams-Sonoma Inc. (DE) (WSM-1.30%) has submitted its 10-K filing for the fiscal year ended February 2, 2025.
The filing reports net revenues of $7.7 billion, a slight decrease from $7.75 billion in the previous year, with a comparable brand revenue decline of 1.6%. This decline was driven by reduced furniture demand, partially offset by strength in non-furniture and seasonal categories.
Pottery Barn, the largest brand within Williams-Sonoma, experienced a 6.2% decline in comparable brand revenue, while Pottery Barn Kids and Teen saw a 3.0% increase. West Elm reported a 2.0% decline, and the Williams Sonoma brand grew by 2.4%.
The company reported a gross profit of $3.58 billion, with a gross margin increase to 46.5% from 42.6% in the previous year. This improvement was attributed to higher merchandise margins, supply chain efficiencies, and an out-of-period freight adjustment.
Selling, general, and administrative expenses rose to $2.15 billion, representing 27.9% of net revenues, up from 26.6% in the previous year. This increase was driven by higher employment and advertising expenses.
Net earnings for the fiscal year were $1.13 billion, with diluted earnings per share of $8.79, compared to $7.28 in the previous year. The effective income tax rate was 24.3%, down from 25.4% in the prior year.
Williams-Sonoma ended the year with $1.2 billion in cash and cash equivalents and no outstanding borrowings under its revolving line of credit. The company returned $1.1 billion to shareholders through stock repurchases and dividends.
The company continues to focus on its key priorities of returning to growth, elevating customer service, and driving earnings. Future growth is expected to be driven by core-brand growth, strategic partnerships, and expansion of the business-to-business division.
Williams-Sonoma operates 512 stores and has a significant e-commerce presence, with approximately 66% of net revenues generated through e-commerce sales in fiscal 2024.
The company acknowledges potential risks from macroeconomic conditions, including inflationary pressures, geopolitical instability, and changes in consumer spending behavior.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Williams-Sonoma Inc. (DE) annual 10-K report dated March 27, 2025. To report an error, please email earnings@qz.com.