01—Abstract
Summary
Summary of the 10-K filed March 26, 2026. Cited figures are marked; the original filing is the authoritative source.
Williams-Sonoma, Inc. reported fiscal 2025 (52 weeks ended February 1, 2026) net revenues of $7.81 billiona, up $95.3 million, or 1.2%, from $7.71 billion in fiscal 2024, which included a 53rd week.
Company comparable brand revenue grew 3.5%, with comp growth of 6.4% in retail and 2.2% in e-commerce. Gross margin declined to 46.2% from 46.5%, and SG&A rose to 28.0% of net revenues from 27.9%. Net earnings were $1.09 billionb, and diluted earnings per share were $8.84 versus $8.79 in fiscal 2024, which the company described as record diluted earnings per share.
Tariffs flowed through cost of goods sold and reduced merchandise margins by 40 basis points, partly offset by supply chain efficiencies. The company ended the year with $1.0 billionc in cash and cash equivalents and no borrowings under its revolving credit facility. Operating cash flow was $1.31 billion, capital expenditures were $259.4 million, and the company returned $1.2 billion to stockholders through repurchases and dividends.
In March 2026, the Board authorized a 15% increase in the quarterly dividend, from $0.66 to $0.76d per share. Subsequent to year-end, the U.S. Supreme Court ruled that IEEPA does not authorize tariffs, and the company is assessing the impact and its ability to recover tariffs paid, though refunds remain subject to further litigation.
Management's 2026 priorities are accelerating growth, delivering world-class customer service, and driving earnings. The filing cites an uncertain macroeconomic environment, a weak housing market, elevated interest rates, and evolving tariff policy as risks to the outlook.
02—Key points
Key Highlights
- Net revenues of $7,806.8 million in fiscal 2025, up 1.2%, with company comparable brand revenue growth of 3.5%
- Retail channel comp growth of 6.4% versus 2.2% for e-commerce; e-commerce represented approximately 65% of net revenues
- Gross margin of 46.2%, down from 46.5%, with tariffs reducing merchandise margins by 40 basis points
- Net earnings of $1,088.4 million; diluted EPS of $8.84 versus $8.79 in fiscal 2024
- Cash of $1.0 billion, no borrowings under the revolving credit facility, and operating cash flow of $1.3 billion
- Returned $1.2 billion to stockholders in fiscal 2025 through repurchases and dividends; quarterly dividend increased 15% to $0.76 per share in March 2026
- Supreme Court ruling on IEEPA tariffs on February 20, 2026, with refund eligibility still subject to litigation
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2026, Williams-Sonoma kept $0.14.
- Revenue$7.81B100.0%
- Cost of revenue−$4.20B53.8%
- Gross profit$3.60B46.2%
- Operating costs−$2.19B28.0%
- Operating income$1.42B18.1%
- Interest, other & tax−$327.7M4.2%
- Net income$1.09B13.9%
Where FY2026 revenue went
$7.81B- Cost of revenue: $4.20B, 54% of revenue
- SG&A: $2.19B, 28% of revenue
- Net income: $1.09B, 14% of revenue
- Interest, other & tax: $327.7M, 4.2% of revenue
Kept 14% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2026filed March 26, 2026Financial Statements
FY2026 against FY2025
| Line item | FY2026FY2025 | Change |
|---|---|---|
| Revenue | $7.81B$7.71B | +1.2% |
| Cost of Revenue | $4.20B$4.13B | +1.8% |
| Gross Profit | $3.60B$3.58B | +0.6% |
| SG&A Expenses | $2.19B$2.15B | +1.6% |
| Operating Income | $1.42B$1.43B | −1.0% |
| Net Income | $1.09B$1.13B | −3.3% |
| EPS (Basic) | $8.96$8.91 | +0.6% |
| EPS (Diluted) | $8.84$8.79 | +0.6% |
| Shares Outstanding (Basic) | 121.45M126.24M | −3.8% |
| Shares Outstanding (Diluted) | 123.15M128.04M | −3.8% |
05—Questions
Frequently Asked Questions
How did Williams-Sonoma perform in fiscal 2025?
Net revenues rose 1.2% to $7.81 billion, driven by 3.5% company comparable brand revenue growth. The comparison was affected by one less week than fiscal 2024, which the company said reduced net revenues by $117.2 million. Diluted EPS rose to $8.84 from $8.79, which the company described as record diluted earnings per share.
What pressures affected margins?
Gross margin declined to 46.2% from 46.5%. The filing attributes 40 basis points of the decline to lower merchandise margins from tariffs flowing into cost of goods sold, and 20 basis points to occupancy deleverage, partly offset by 50 basis points of supply chain efficiencies. SG&A rose to 28.0% of net revenues from 27.9%.
How strong is the company's balance sheet and liquidity?
The company held $1.0 billion in cash and cash equivalents at fiscal year-end and had no borrowings under its $600 million revolving credit facility, which can be increased by up to $250 million. Stockholders' equity was $2.08 billion, and the company stated it was in compliance with its financial covenants.
How is the company returning capital to shareholders?
In fiscal 2025 the company repurchased 4,888,240 shares for $854.0 million and paid $326.8 million in dividends declared, or $2.64 per share. As of February 1, 2026, about $1.3 billion remained under its repurchase authorization. In March 2026 the Board approved a 15% increase in the quarterly dividend, to $0.76 per share, subject to capital availability.
What is the potential impact of the Supreme Court tariff ruling?
On February 20, 2026, the Supreme Court held that IEEPA does not authorize tariffs during peacetime national emergencies, and the related IEEPA tariffs were ended. A new 150-day tariff under Section 122 took effect February 24, 2026. The company is assessing the impact on its operations and its ability to recover tariffs paid, but said it cannot predict whether or when refunds will be available.
06—Continue