Williams-Sonoma (WSM)
Consumer Discretionary · $27.5B market cap · SEC CIK 0000719955
fundamentals score out of 100
Next reports on Nov 17, 2026, before the open, with analysts expecting $2.20 in earnings per share.
The case for WSM
- Earns 58% back on shareholder equity.
- Carries essentially no debt.
- Pays a modest 1.6% dividend.
The case against
- Swings harder than the market (beta 1.51).
- Value is weak (39/100): 23.3× earnings, 3.4× sales, 3.8% free-cash yield.
- Revenue grew only 2.2%, roughly the pace of inflation.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 39 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 34 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 77 |
| Momentumhow the price has behaved lately | 64 |
| Stabilityhow violently it moves, what it owes and what it pays you | 61 |
- Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.
Key numbers
| Price / earnings | 23.3× |
|---|---|
| Price / book | 13.19× |
| Price / sales | 3.4× |
| Revenue growth (YoY) | +2.2% |
| EPS growth (YoY) | +11.1% |
| Gross margin | 47% |
| Operating margin | 19% |
| Net margin | 15% |
| Return on equity | 58% |
| Debt / equity | 0.00× |
| Current ratio | 1.45 |
| Dividend yield | 1.58% |
| Beta | 1.51 |
| 52-week range | $165.51 – $254.89 |
| Position in that range | 75% of the way up |
| 3-month return | +0.1% |
| 1-year return | +14.6% |
Five years of financials, as filed
Pulled from Williams-Sonoma's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $7.8B | $7.7B | $7.8B | $8.7B | $8.2B |
| Gross profit | $3.6B | $3.6B | $3.3B | $3.7B | $3.6B |
| Operating income | $1.4B | $1.4B | $1.2B | $1.5B | $1.5B |
| Net income | $1.1B | $1.1B | $950M | $1.1B | $1.1B |
| Operating cash flow | $1.3B | $1.4B | $1.7B | $1.1B | $1.4B |
| Capital expenditure | $259M | $222M | $188M | $354M | $227M |
| Total assets | $5.4B | $5.3B | $5.3B | $4.7B | $4.6B |
| Total liabilities | $3.3B | $3.2B | $3.1B | $3.0B | $3.0B |
| Shareholder equity | $2.1B | $2.1B | $2.1B | $1.7B | $1.7B |
| Cash | $1.0B | $1.2B | $1.3B | $367M | $850M |
| Free cash flow | $1.1B | $1.1B | $1.5B | $699M | $1.1B |
| Gross margin | 46.2% | 46.5% | 42.6% | 42.4% | 44.0% |
| Operating margin | 18.1% | 18.5% | 16.1% | 17.3% | 17.6% |
| Net margin | 13.9% | 14.6% | 12.3% | 13.0% | 13.7% |
| Diluted shares | 123M | 128M | 131M | 138M | 76.4M |
Share count is up 61.3% over 4 years. Your slice has been diluted.
What Williams-Sonoma says it does
OVERVIEW Williams-Sonoma, Inc., (the "Company", "we", or "us") incorporated in 1973, is an omni-channel specialty retailer of high-quality products for the home. In 1956, our founder, Chuck Williams, turned a passion for cooking and eating with friends into a small business with a big idea. He opened a store in Sonoma, California to sell the French cookware that intrigued him while visiting Europe but that could not be found in America. Chuck’s business, which set a standard for customer service, took off and helped fuel a revolution in American cooking and entertaining that continues today. In the decades that followed, our commitment to product quality, our ability to identify new market opportunities and our people-first business approach have driven our expansion beyond the kitchen into nearly every area of the home, as well as the places where our customers work, stay and play. Our in-house design capabilities and vertically…
Risk factors WSM lists in its 10-K
- Talent Development and Career Mobility
- We are unable to control many of the factors affecting consumer spending, and declines in consumer spending on home furnishings and kitchen products in general could reduce demand for our products
- If we are unable to identify and analyze factors affecting our business and anticipate changing consumer preferences and buying trends our sales levels and operating results may decline
- Our business and operating results may be harmed if we are unable to manage our inventory and timely
- and effectively deliver merchandise to our stores and customers
- Our inability to successfully manage our order-taking and fulfillment operations could have a negative impact on our business and operating results
- We must protect and maintain our brand image and reputation
- Our industry is highly competitive and we face increased competition based on a number of factors that could negatively impact our sales
- Our aspirations, goals and disclosures related to our sustainability initiatives expose us to numerous risks, including risks to our reputation and stock price
- Our business is subject to evolving corporate governance and public disclosure regulations and expectations that could expose us to numerous risks
- If we are unable to effectively manage our e-commerce business and digital marketing efforts, our reputation and operating results may be harmed
- Declines in our comparable brand revenues may harm our operating results and cause a decline in our stock price
- Our inability to successfully manage the costs and performance of our advertising might have a negative impact on our business
- If we are unable to successfully manage the complexities associated with an omni-channel and multi-brand business, we may suffer declines in our existing business and our ability to attract new customers