Williams-Sonoma, Inc. (NYSE:WSM) on Wednesday reported fourth-quarter earnings that exceeded expectations, despite a revenue shortfall.

Williams-Sonoma reported GAAP diluted EPS of $3.04, surpassing analyst estimates of $2.91. However, net revenue was $2.36 billion, below the $2.42 billion estimate and down from $2.46 billion a year ago, due to an extra week in the prior period.

EO Laura Alber stated, "We are proud of our strong finish to 2025. In Q4, our comp came in at +3.2%, and we delivered an operating margin of 20.3% with earnings per share of $3.04. Normalizing for the 53rd week last year and the tariff impact this year, we delivered substantial operating margin improvement versus last year."

For fiscal 2026, the company expects net revenue growth of 2.7% to 6.7%. This means projected sales of $8.02 billion to $8.33 billion, compared to estimates of $8.14 billion.

Williams-Sonoma shares fell 1.6% to trade at $181.18 on Thursday.

These analysts made changes to their price targets on Williams-Sonoma following earnings announcement.

  • Baird analyst Peter Benedict maintained Williams-Sonoma with an Outperform rating and lowered the price target from $235 to $225.
  • RBC Capital analyst Steven Shemesh maintained the stock with an Outperform rating and raised the price target from $206 to $214.
  • TD Cowen analyst Max Rakhlenko maintained Williams-Sonoma with a Buy and lowered the price target from $250 to $225.

Considering buying WSM stock? Here’s what analysts think:

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