01—Abstract
Summary
Summary of the 10-Q filed November 25, 2025. Cited figures are marked; the original filing is the authoritative source.
Williams-Sonoma, Inc. reported third-quarter fiscal 2025 results for the thirteen weeks ended November 2, 2025, with net revenues of $1.88 billiona, up from $1.80 billion, and diluted earnings per share of $1.96 versus $1.87 a year earlier.
Net earnings were $241.6 millionb compared with $237.3 million. Company comparable sales grew 4.0%, driven by an 8.5% comp in the retail channel and 1.9% in e-commerce. Gross margin rose to 46.1% from 45.4%, which the company attributed mainly to higher merchandise margins, including slower-than-anticipated flow-through of tariffs into cost of goods sold, and to supply chain efficiencies.
SG&A rose to 29.1% of net revenues from 28.5%, driven by higher performance-based incentive compensation and advertising. For the first thirty-nine weeks of fiscal 2025, net revenues were $5.45 billionc and diluted EPS was $5.82. The company ended the quarter with $884.7 million in cash and cash equivalents and no borrowings under its $600 million revolving credit facility.
Operating cash flow for the thirty-nine weeks was $718.0 milliond, capital expenditures were $178.5 million, and the company returned $792.3 million to stockholders through repurchases and dividends. In November 2025, the Board approved a new $1.0 billion stock repurchase authorization, effective once the September 2024 authorization of $636.8 million remaining is fully used. The filing flags an evolving tariff environment: the incremental tariff rate rose from 14% in May 2025 to 29% as of the filing date.
Management expects these tariffs to increase costs for imported materials and finished goods and said it may not be able to offset all of the added costs. The filing also notes a $49.0 million out-of-period freight adjustment and an immaterial correction of prior-year shrink losses in fiscal 2024 interim periods.
02—Key points
Key Highlights
- Net revenues of $1,882.8 million for the third quarter, up from $1,800.7 million, with company comp growth of 4.0%.
- Gross margin of 46.1% versus 45.4% a year earlier, helped by higher merchandise margins and supply chain efficiencies, with tariff flow-through into cost of goods sold delayed.
- Diluted EPS of $1.96 for the quarter versus $1.87; $5.82 for the first thirty-nine weeks versus $5.54.
- Cash and cash equivalents of $884.7 million at quarter end, with no borrowings under the $600 million Credit Facility.
- Returned $792.3 million to stockholders through repurchases and dividends in the first thirty-nine weeks; a new $1.0 billion repurchase authorization was approved in November 2025.
- Incremental tariff rate increased from 14% in May 2025 to 29% as of the filing, with management warning it may not offset all added costs.
- Pottery Barn comp growth of 1.3%, West Elm 3.3%, Williams Sonoma 7.3% and Pottery Barn Kids and Teen 4.4% in the third quarter.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Williams-Sonoma kept $0.13.
- Revenue$1.88B100.0%
- Cost of revenue−$1.02B53.9%
- Gross profit$867.7M46.1%
- Operating costs−$548.6M29.1%
- Operating income$319.1M17.0%
- Interest, other & tax−$77.6M4.1%
- Net income$241.6M12.8%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed November 25, 2025Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.88B$1.80B | +4.6% |
| Cost of Revenue | $1.02B$983.10M | +3.3% |
| Gross Profit | $867.73M$817.57M | +6.1% |
| SG&A Expenses | $548.59M$512.53M | +7.0% |
| Operating Income | $319.14M$305.03M | +4.6% |
| Net Income | $241.59M$237.26M | +1.8% |
| EPS (Basic) | $1.99$1.89 | +5.3% |
| EPS (Diluted) | $1.96$1.87 | +4.8% |
| Shares Outstanding (Basic) | 121.43M125.33M | −3.1% |
| Shares Outstanding (Diluted) | 123.27M126.89M | −2.9% |
05—Questions
Frequently Asked Questions
How did Williams-Sonoma perform in the third quarter of fiscal 2025?
Net revenues rose $82.1 million, or 4.6%, to $1.88 billion, with company comp growth of 4.0%. Diluted EPS grew 4.8% to $1.96, compared with $1.87 in the third quarter of fiscal 2024.
What is driving the change in gross margin?
Gross margin rose to 46.1% from 45.4%. The filing attributes 60 basis points to higher merchandise margins, including slower-than-anticipated tariff flow-through into cost of goods sold and tariff mitigation actions such as select price increases, and 30 basis points to supply chain efficiencies. Higher occupancy costs offset 20 basis points.
How much tariff exposure does the company describe?
The incremental tariff rate has more than doubled from 14% in May 2025 to 29% as of the filing date. The company expects increased costs for imported materials and finished goods and says it may not be able to offset all of them, which could have a material impact on earnings.
What is the company's liquidity position and capital return plan?
The company held $884.7 million in cash and cash equivalents and had no outstanding revolver borrowings. It repurchased shares for $555.7 million and paid $236.6 million in dividends in the first thirty-nine weeks, and approved a new $1.0 billion repurchase authorization in November 2025.
06—Continue