01—Abstract
Summary
Summary of the 10-K filed March 27, 2025. Cited figures are marked; the original filing is the authoritative source.
Williams-Sonoma, Inc. reported fiscal 2024 (53 weeks ended February 2, 2025) net revenues of $7.71 billiona, a decrease of $39.1 million, or 0.5%, from $7.75 billion in fiscal 2023.
The company comparable brand revenue declined 1.6%b, driven by customer hesitancy toward furniture purchases, partially offset by strength in non-furniture and seasonal assortments. Pottery Barn comparable brand revenue fell 6.2%, while Williams Sonoma grew 2.4%, Pottery Barn Kids and Teen grew 3.0%, and West Elm declined 2.0%. E-commerce accounted for approximately 66% of net revenues, and the e-commerce comparable decline was 2.5% versus a 0.2% increase in retail.
Profitability improved meaningfully. Gross margin rose to 46.5% from 42.6%, driven by higher merchandise margins, supply chain efficiencies and a $49.0 millionc out-of-period freight adjustment. Operating income increased to $1.43 billion from $1.24 billion, and diluted earnings per share rose to $8.79 from $7.28.
Operating cash flow was $1.36 billiond, and the company ended the year with $1.21 billion in cash and no borrowings under its $500 million revolving credit facility. Shareholder returns totaled $1.1 billion through stock repurchases and dividends, and the Board authorized a 16% increase in the quarterly dividend to $0.66 per share in March 2025.
Management's outlook for 2025 emphasizes returning to growth, elevating customer service and driving earnings, while cautioning about the weak housing market, elevated interest rates, inflationary pressure and new tariffs. The filing notes the company was added to the S&P 500 on March 24, 2025.
02—Key points
Key Highlights
- Net revenues of $7.71 billion in fiscal 2024, down $39.1 million or 0.5%; company comparable brand revenue declined 1.6%.
- Gross margin expanded to 46.5% from 42.6%, including a 390 basis point increase driven by merchandise margins, supply chain efficiencies and an out-of-period freight adjustment.
- Operating income rose to $1.43 billion from $1.24 billion, and diluted EPS increased to $8.79 from $7.28.
- Pottery Barn comparable brand revenue declined 6.2%, while Williams Sonoma grew 2.4% and Pottery Barn Kids and Teen grew 3.0%.
- Ended the year with $1.21 billion in cash, no revolver borrowings, and $1.4 billion-level operating cash flow of $1.36 billion.
- Returned $1.1 billion to stockholders through buybacks and dividends; the March 2025 dividend increase raises the quarterly rate 16% to $0.66.
- Approximately 66% of net revenues came from e-commerce, with the e-commerce comparable brand revenue declining 2.5%.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Williams-Sonoma kept $0.15.
- Revenue$7.71B100.0%
- Cost of revenue−$4.13B53.5%
- Gross profit$3.58B46.5%
- Operating costs−$2.15B27.9%
- Operating income$1.43B18.5%
- Interest, other & tax−$305.2M4.0%
- Net income$1.13B14.6%
Where FY2025 revenue went
$7.71B- Cost of revenue: $4.13B, 54% of revenue
- SG&A: $2.15B, 28% of revenue
- Net income: $1.13B, 15% of revenue
- Interest, other & tax: $305.2M, 4.0% of revenue
Kept 15% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed March 27, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $7.71B$7.75B | −0.5% |
| Cost of Revenue | $4.13B$4.45B | −7.1% |
| Gross Profit | $3.58B$3.30B | +8.4% |
| SG&A Expenses | $2.15B$2.06B | +4.5% |
| Operating Income | $1.43B$1.24B | +14.9% |
| Net Income | $1.13B$950.00M | +18.4% |
| EPS (Basic) | $8.91$7.35 | +21.2% |
| EPS (Diluted) | $8.79$7.28 | +20.7% |
| Shares Outstanding (Basic) | 126.24M129.15M | −2.3% |
| Shares Outstanding (Diluted) | 128.04M130.54M | −1.9% |
05—Questions
Frequently Asked Questions
Why did revenue decline while profitability improved?
Management attributed the 0.5% revenue decline to customer hesitancy toward furniture purchases, partially offset by strength in non-furniture and seasonal assortments. Profitability improved mainly due to higher merchandise margins, supply chain efficiencies (reduced returns, damages and out-of-market shipments), and a $49.0 million out-of-period freight adjustment recorded in the first quarter of fiscal 2024.
Which brands performed best and worst in fiscal 2024?
Williams Sonoma grew comparable brand revenue 2.4% and Pottery Barn Kids and Teen grew 3.0%, while emerging brands Rejuvenation, Mark and Graham, and GreenRow delivered double-digit comparable growth combined. Pottery Barn, the largest brand, declined 6.2% and West Elm declined 2.0%.
How strong is the company's liquidity and capital return program?
The company ended fiscal 2024 with $1.21 billion in cash and cash equivalents and no borrowings under its $500 million revolving Credit Facility. Stock repurchases totaled $807.5 million and dividends paid were $280.1 million. As of February 2, 2025, about $1.2 billion of repurchase authorization remained, and the quarterly dividend was increased to $0.66 per share in March 2025.
What are the main risks flagged for 2025?
Management highlighted the weak housing market, elevated interest rates, layoffs, inflationary pressure, political uncertainty, global geopolitical instability and new tariffs as factors that could negatively affect the business. The filing also cites tariffs, reliance on foreign suppliers (about 82% of merchandise purchases were from foreign suppliers, with 23% from China), and cybersecurity risks.
06—Continue