Williams-Sonoma, Inc. (NYSE: WSM) is the world’s largest digital-first, design-led home furnishings retailer, managing multiple brands including Pottery Barn, West Elm, and Williams Sonoma. The company operates a diverse assortment of retail, e-commerce, and direct-mail businesses, spanning across North America and into international markets.

Williams-Sonoma is currently in a stable growth condition. In the first quarter of fiscal year 2025, the company achieved total net revenues of $1.73 billion, reflecting a comparable brand revenue growth of 3.4%, notably surpassing the overall home furnishings industry, which declined by approximately 3%. The positive performance across all brands includes contributions from Pottery Barn at 2.0%, Williams Sonoma at 7.3%, and Pottery Barn Kids at 3.8%.

The company’s operating margin stands at 16.8%, despite a year-over-year decline driven by prior-year benefits from an out-of-period freight adjustment. Excluding this adjustment, the operating margin actually increased by 70 basis points. Adjusted earnings per share (EPS) is reported at $1.85, marking an increase of 8.8% when not accounting for the earlier freight adjustment which had contributed $0.29 to the previous year’s EPS.

Additional financial metrics reveal that the gross margin for Q1 is at 44.3%, a decrease of 360 basis points compared to the previous year, primarily due to lower merchandise margins influenced by increasing costs and supply chain adjustments. SG&A expenses for the quarter are reported at $475 million, representing 27.5% of revenues, a decrease of 130 basis points year-over-year.

For the year ahead, Williams-Sonoma has reiterated guidance for fiscal year 2025, anticipating comparable brand revenue growth of flat to 3% and operating margins in the range of 17.4% to 17.8%. The company maintains a robust cash position of $1 billion and reported merchandise inventories of $1.3 billion, increasing by 10% year-over-year. This increase partially reflects a strategic pull forward of inventory to mitigate potential financial impacts from tariffs.

Overall, the data from the first quarter indicates that Williams-Sonoma is effectively managing its operations and inventory amidst ongoing economic challenges, supported by strong sales performance across its brand portfolio.