Williams-Sonoma Reports 20% Q2 EPS Growth, Raises 2025 Outlook

Williams-Sonoma reported strong Q2 2025 results with GAAP revenue of $1.84 billion, up 2.7% year-over-year and slightly above Wall Street expectations. Diluted earnings per share (GAAP) rose nearly 20% to $2.00, surpassing analyst estimates by $0.22, supported by improved profit margins and operating margin expansion of 240 basis points driven by higher merchandise margins and supply chain efficiencies. All four of its major brands, including Pottery Barn and West Elm, posted positive comparable sales for the second consecutive quarter, reversing last year's declines. The company raised its full-year net revenue guidance to a growth range of 0.5% to 3.5%, reflecting ongoing momentum despite concerns about elevated inventory levels, escalating tariffs, and supply chain challenges. Management highlighted strong omni-channel execution and brand portfolio strength as key factors positioning Williams-Sonoma for future growth, even as some analysts forecast flat revenue over the next 12 months. Overall, the results demonstrate resilience in a challenging retail environment, driven by both furniture and non-furniture segments across retail and e-commerce channels.