01—Abstract
Summary
Summary of the 10-Q filed August 29, 2025. Cited figures are marked; the original filing is the authoritative source.
Williams-Sonoma, Inc. reported net revenues of $1.84 billiona for the thirteen weeks ended August 3, 2025, up from $1.79 billion a year earlier, with company comparable brand revenue growth of 3.7%.
Gross margin rose to 47.1% from 44.9%, and operating income increased to $328.1 millionb from $277.9 million. Net earnings were $247.6 million, or $2.00 per diluted share, compared with $1.67 per diluted share in the second quarter of fiscal 2024. For the first half of fiscal 2025, net revenues were $3.57 billion and diluted earnings per share were $3.86.
Cash and cash equivalents were $985.8 millionc at quarter-end, and the company had no borrowings under its $600 million revolving Credit Facility, which was amended in June 2025 and extended to June 26, 2030. Operating cash flow for the first half was $401.7 million, down from $473.3 million, primarily due to higher merchandise inventory spending, which the filing attributes in part to increased tariff costs and receipt timing. Inventories rose to $1.43 billion from $1.33 billion at fiscal year-end.
The company returned $445.1 milliond to stockholders through repurchases and dividends in the first half, and $903.4 million remained under its current repurchase authorization. Management states that the incremental tariff rate has doubled from 14% to 28% since its prior Form 10-Q, and that while it can offset a portion of these costs, it does not expect to offset all of them. The filing also reports that the company was in compliance with its financial covenants as of August 3, 2025.
02—Key points
Key Highlights
- Net revenues of $1,836.8 million in the second quarter of fiscal 2025, up $48.5 million or 2.7% from $1,788.3 million, with company comparable brand revenue growth of 3.7%.
- Gross margin increased to 47.1% from 44.9%, driven by higher merchandise margins of 190 basis points and supply chain efficiencies of 30 basis points.
- Operating income of $328.1 million versus $277.9 million a year earlier; net earnings of $247.6 million, and diluted EPS of $2.00 versus $1.67.
- Cash and cash equivalents of $985.8 million at August 3, 2025, with no outstanding borrowings under the $600 million revolving Credit Facility.
- First-half operating cash flow of $401.7 million, compared with $473.3 million in the prior-year period, mainly due to higher merchandise inventory spending.
- Merchandise inventories of $1,433.6 million, up from $1,332.4 million at February 2, 2025; the company cited increased tariff costs and timing of receipts.
- Quarterly cash dividend of $0.66 per share declared in the second quarter, versus $0.57 a year earlier, and $903.4 million remaining under the stock repurchase program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Williams-Sonoma kept $0.13.
- Revenue$1.84B100.0%
- Cost of revenue−$972.1M52.9%
- Gross profit$864.6M47.1%
- Operating costs−$536.6M29.2%
- Operating income$328.1M17.9%
- Interest, other & tax−$80.5M4.4%
- Net income$247.6M13.5%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 29, 2025Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $1.84B$1.79B | +2.7% |
| Cost of Revenue | $972.14M$984.37M | −1.2% |
| Gross Profit | $864.62M$803.94M | +7.5% |
| SG&A Expenses | $536.56M$526.04M | +2.0% |
| Operating Income | $328.06M$277.90M | +18.0% |
| Net Income | $247.56M$216.85M | +14.2% |
| EPS (Basic) | $2.03$1.69 | +20.1% |
| EPS (Diluted) | $2.00$1.67 | +19.8% |
| Shares Outstanding (Basic) | 122.12M128.26M | −4.8% |
| Shares Outstanding (Diluted) | 123.59M129.81M | −4.8% |
05—Questions
Frequently Asked Questions
How did Williams-Sonoma perform in the second quarter of fiscal 2025?
Net revenues rose 2.7% to $1.84 billion, with company comparable brand revenue growth of 3.7%. Retail comparable growth was 7.3% and e-commerce comparable growth was 2.0%. Operating income increased to $328.1 million from $277.9 million, and diluted EPS rose to $2.00 from $1.67.
What is the company's exposure to tariffs?
Management states that its incremental tariff rate has doubled from 14% to 28% since its previous Form 10-Q for the quarter ended May 4, 2025. It expects these tariffs to increase costs for imported materials and finished goods, and while it believes it can offset a portion of the costs, it does not expect to offset all of them.
How strong is the company's liquidity position?
The company held $985.8 million in cash and cash equivalents, of which $66.9 million was held by international subsidiaries, and had no borrowings under its $600 million revolving Credit Facility. The Credit Facility matures June 26, 2030, and the company was in compliance with its financial covenants as of August 3, 2025.
How much did the company return to shareholders?
In the first half of fiscal 2025, the company returned $445.1 million through stock repurchases and dividends. It repurchased 1,826,790 shares for $289.1 million in the first half and declared dividends of $1.32 per share, with $903.4 million remaining under its current repurchase program.
Why did operating cash flow decline?
Operating cash flow for the first half of fiscal 2025 was $401.7 million compared with $473.3 million a year earlier. The filing attributes the decrease primarily to higher spending on merchandise inventories, partially offset by an increase in income taxes payable.
06—Continue