A Business at a Glance
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WILLIAMS SONOMA INC
WSM
$27.9B
Mkt Cap
$226.74
+3.72%
WILLIAMS SONOMA INC (WSM) has a current P/E ratio of 25.6, compared to its historical median P/E of 12.4. The stock is currently considered Expensive based on its historical valuation range.
WILLIAMS SONOMA INC (WSM) has a 5-year average return on invested capital (ROIC) of 119.0%. This indicates strong capital allocation and a potential competitive advantage.
WILLIAMS SONOMA INC (WSM) has a market capitalization of $27.1B. It is classified as a large-cap stock.
Yes, WILLIAMS SONOMA INC (WSM) pays a dividend with a trailing twelve-month yield of 1.14%. The company also returns capital through share buybacks, with a buyback yield of 2.42%.
Based on historical P/E analysis, WILLIAMS SONOMA INC (WSM) appears expensive. The current P/E of 25.6 is 106% above its historical median of 12.4. The estimated fair value CAGR (P/E method) is 24.8%.
WILLIAMS SONOMA INC (WSM) operates in the Retail-Home Furniture, Furnishings & Equipment Stores industry, within the Consumer Cyclical sector.
WILLIAMS SONOMA INC (WSM) reported annual revenue of $7.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
Williams-Sonoma, Inc. is an omni-channel specialty retailer of high-quality home furnishings and décor products operating through a portfolio of nine brands—Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham, and GreenRow—distributed via e-commerce websites, 512 retail stores across the U.S., Canada, Australia, and the United Kingdom, direct-mail catalogs, and franchised locations in select international markets. The company earns revenue through product sales across furniture, cookware, tabletop, lighting, décor, and personalized goods, leveraging in-house design capabilities and a vertically integrated sourcing organization that sources approximately 82% of merchandise from foreign suppliers (primarily China, India, and Vietnam) and manufactures upholstered furniture and lighting domestically. The business model combines asset-light e-commerce operations with physical retail locations that serve as brand billboards and omni-fulfillment hubs, supported by proprietary customer data, in-house analytics, and digital marketing to drive omni-channel sales. Competitive differentiation stems from brand authority, exclusive in-house product design, quality merchandise, customer service excellence, and a unified omni-channel platform, with seasonal demand concentration in the October-through-January peak selling period. The company operates across multiple customer segments spanning home furnishings, children's products, kitchen and entertaining, and premium décor, with geographic presence in North America, Australia, and the United Kingdom plus international franchisees and worldwide shipping capabilities.
【Tariff headwinds moderating】 Management expects tariff impacts to be front-half weighted in fiscal 2026, with moderation anticipated in the back half as the company laps prior-year tariff costs and benefits from supply chain efficiencies and mitigation strategies. The company is pursuing growth through disciplined execution of its product lineup, continued investment in collaborations, and expansion of growth initiatives including Dormify, Rejuvenation, and B2B, while maintaining focus on world-class customer service through supply chain improvements and AI-powered customer service tools. Capital allocation priorities include approximately $275 million in capital expenditures focused on e-commerce, retail optimization, and supply chain efficiency, with plans to open 20 new stores and reposition 19 existing locations in fiscal 2026, followed by anticipated store count growth of 1%-3% annually thereafter. Management remains committed to returning excess cash to shareholders through increased dividends and ongoing share repurchases, while acknowledging continued macroeconomic uncertainty and the absence of a meaningful housing recovery in current guidance assumptions.
| Metric | Target | Period |
|---|---|---|
| Net revenue comps | 2%-6% | FY2026 |
| Total net revenue growth | 2.7%-6.7% | FY2026 |
| Operating margin | 17.5%-18.1% | FY2026 |
| Capital expenditures | approximately $275 million | FY2026 |
| Interest income | approximately $25 million | FY2026 |
| Effective tax rate | approximately 25.5% | FY2026 |
| Store count growth | 1%-3% per year | FY2027 and beyond |
| Long-term revenue growth | mid to high single-digit | Beyond FY2026 |
| Long-term operating margins | mid to high teens | Beyond FY2026 |
Net revenue comps (FY2026): “We expect fiscal year 2026 net revenue comps to be in the range of 2%-6%, with total net revenue growth of 2.7%-6.7%.”
Total net revenue growth (FY2026): “We expect fiscal year 2026 net revenue comps to be in the range of 2%-6%, with total net revenue growth of 2.7%-6.7%.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2027 Earnings Call, Q3 FY2027 Earnings Call, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 7.9B | 7.8B | 7.7B | 7.8B | 8.7B | 8.2B |
| Net Income | 1.1B | 1.1B | 1.1B | 950M | 1.1B | 1.1B |
| EPS | $9.19 | $8.84 | $8.79 | $3.64 | $4.08 | $7.38 |
| Free Cash Flow | 1.1B | 1.1B | 1.1B | 1.5B | 699M | 1.1B |
| ROIC | 368.5% | 106.5% | 120.7% | 84.4% | 104.9% | 178.3% |
| Gross Margin | 46.3% | 46.2% | 46.5% | 42.6% | 42.4% | 44.0% |
| Debt/Equity | 0.00 | 1.60 | 1.47 | 1.48 | 1.74 | 0.00 |
| Dividends/Share | $2.58 | $2.64 | $2.28 | $0.90 | $0.78 | $1.30 |
| Operating Income | 1.5B | 1.4B | 1.4B | 1.2B | 1.5B | 1.5B |
| Operating Margin | 18.6% | 18.1% | 18.5% | 16.1% | 17.3% | 17.6% |
| ROE | 54.7% | 51.5% | 52.7% | 49.6% | 67.0% | 67.9% |
| Shares Outstanding | 119M | 123M | 128M | 261M | 276M | 153M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 4.7B | 5.0B | 5.1B | 5.3B | 5.7B | 5.9B | 6.8B | 8.2B | 8.7B | 7.8B | 7.7B | 7.8B | 7.9B |
| Gross Margin | 38.3% | 37.1% | 37.0% | 36.5% | 37.0% | 36.3% | 38.9% | 44.0% | 42.4% | 42.6% | 46.5% | 46.2% | 46.3% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 1.3B | 1.4B | 1.4B | 1.5B | 1.7B | 1.7B | 1.7B | 2.2B | 2.2B | 2.1B | 2.2B | 2.2B | 2.2B |
| EBIT | 502M | 489M | 473M | 454M | 436M | 466M | 911M | 1.5B | 1.5B | 1.2B | 1.4B | 1.4B | 1.5B |
| Op. Margin | 10.7% | 9.8% | 9.3% | 8.6% | 7.7% | 7.9% | 13.4% | 17.6% | 17.3% | 16.1% | 18.5% | 18.1% | 18.6% |
| Net Income | 309M | 310M | 305M | 260M | 334M | 356M | 681M | 1.1B | 1.1B | 950M | 1.1B | 1.1B | 1.1B |
| Net Margin | 6.6% | 6.2% | 6.0% | 4.9% | 5.9% | 6.0% | 10.0% | 13.7% | 13.0% | 12.3% | 14.6% | 13.9% | 14.3% |
| Non-Recurring | 0 | 0 | 14M | 8.6M | 0 | 0 | 0 | 0 | 25M | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 32.0% | 30.9% | 30.0% | 25.4% | 30.4% | 32.7% | 89.2% | 178.3% | 104.9% | 84.4% | 120.7% | 106.5% | N/M |
| ROE | 24.9% | 25.6% | 25.0% | 21.2% | 28.3% | 29.8% | 47.2% | 67.9% | 67.0% | 49.6% | 52.7% | 51.5% | 54.7% |
| ROA | 13.2% | 13.1% | 12.5% | 9.9% | 11.9% | 10.4% | 15.6% | 24.3% | 24.3% | 19.1% | 21.3% | 20.3% | 21.3% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 462M | 544M | 525M | 500M | 586M | 607M | 1.3B | 1.4B | 1.1B | 1.7B | 1.4B | 1.3B | 1.4B |
| Free Cash Flow | 257M | 341M | 327M | 310M | 396M | 421M | 1.1B | 1.1B | 699M | 1.5B | 1.1B | 1.1B | 1.1B |
| Owner Earnings | 255M | 335M | 300M | 274M | 337M | 355M | 1.0B | 1.1B | 748M | 1.4B | 1.0B | 977M | 1.0B |
| CapEx | 205M | 203M | 197M | 190M | 190M | 186M | 170M | 227M | 354M | 188M | 222M | 259M | 246M |
| Maint. CapEx | 162M | 168M | 173M | 183M | 189M | 188M | 189M | 196M | 214M | 233M | 230M | 231M | 229M |
| Growth CapEx | 43M | 35M | 24M | 6.6M | 1.3M | 0 | 0 | 30M | 140M | 0 | 0 | 28M | 17M |
| D&A | 162M | 168M | 173M | 183M | 189M | 188M | 189M | 196M | 214M | 233M | 230M | 231M | 229M |
| CapEx/OCF | 44.4% | 37.3% | 37.6% | 38.0% | 32.4% | 30.7% | 13.3% | 16.5% | 33.6% | 11.2% | 16.3% | N/A | 18.2% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 126M | 128M | 134M | 135M | 140M | 151M | 158M | 188M | 217M | 232M | 280M | 316M | 308M |
| Dividend Yield | 2.5% | 2.4% | 3.6% | 3.8% | 3.5% | 3.3% | 2.5% | 1.6% | 1.3% | 1.2% | 1.4% | N/A | 1.1% |
| Share Buybacks | 224M | 225M | 151M | 196M | 295M | 149M | 150M | 899M | 880M | 313M | 807M | 854M | 656M |
| Buyback Yield | 3.8% | 5.6% | 4.3% | 5.3% | 7.1% | 3.4% | 1.6% | 8.8% | 10.8% | 2.1% | 3.3% | 0.0% | 2.4% |
| Stock-Based Comp | 45M | 41M | 51M | 43M | 60M | 64M | 73M | 95M | 90M | 85M | 99M | 107M | 110M |
| Debt Repayment | 1.8M | 2.0M | 359K | 1.2M | 0 | 0 | 0 | 300M | 0 | 0 | 0 | 1.2M | 1.2M |
| Balance Sheet | |||||||||||||
| Net Debt | -221M | -194M | -214M | -91M | -39M | -132M | -901M | -850M | N/A | N/A | N/A | N/A | -1.8B |
| Cash & Equiv. | 223M | 194M | 214M | 390M | 339M | 432M | 1.2B | 850M | 367M | 1.3B | 1.2B | 1.0B | 1.8B |
| Long-Term Debt | 0 | N/A | N/A | 299M | 300M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | 0.00 | 0.00 | 0.00 | 0.25 | 0.26 | 0.24 | 0.18 | 0.00 | 1.74 | 1.48 | 1.47 | 1.60 | 0.00 |
| Interest Coverage | 395.8 | 245.7 | 214.6 | 155.7 | 38.2 | 36.7 | 49.6 | 470.3 | 1901.6 | 1486.5 | 1684.6 | 2045.8 | 2045.8 |
| Equity | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B | 1.7B | 1.7B | 1.7B | 2.1B | 2.1B | 2.1B | 2.1B |
| Total Assets | 2.3B | 2.4B | 2.5B | 2.8B | 2.8B | 4.1B | 4.7B | 4.6B | 4.7B | 5.3B | 5.3B | 5.4B | 5.3B |
| Total Liabilities | 1.1B | 1.2B | 1.2B | 1.6B | 1.7B | 2.8B | 3.0B | 3.0B | 3.0B | 3.1B | 3.2B | 3.3B | 3.2B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 701M | 669M | 702M | 647M | 584M | 645M | 1.0B | 1.1B | 1.1B | 1.6B | 1.6B | 1.5B | 1.5B |
| Working Capital | 516M | 340M | 406M | 629M | 620M | 146M | 619M | 552M | 400M | 839M | 843M | 759M | 792M |
| Current Assets | 1.4B | 1.3B | 1.4B | 1.6B | 1.7B | 1.8B | 2.5B | 2.3B | 2.0B | 2.7B | 2.8B | 2.7B | 2.6B |
| Current Liabilities | 876M | 996M | 961M | 1.0B | 1.1B | 1.6B | 1.8B | 1.8B | 1.6B | 1.9B | 1.9B | 2.0B | 1.9B |
| Per Share Data | |||||||||||||
| EPS | 1.62 | 1.69 | 1.71 | 1.51 | 2.03 | 2.25 | 4.31 | 7.38 | 4.08 | 3.64 | 8.79 | 8.84 | 9.19 |
| Owner EPS | 1.34 | 1.82 | 1.68 | 1.59 | 2.05 | 2.24 | 6.41 | 7.07 | 2.71 | 5.22 | 8.06 | 7.93 | 8.48 |
| Book Value | 6.42 | 6.51 | 6.97 | 7.00 | 7.01 | 7.79 | 10.44 | 10.90 | 6.15 | 8.16 | 16.74 | 16.91 | 17.32 |
| Cash Flow/Share | 2.42 | 2.96 | 2.93 | 2.91 | 3.56 | 3.83 | 8.06 | 8.98 | 3.81 | 6.44 | 10.63 | 10.68 | 11.39 |
| Dividends/Share | 0.66 | 0.70 | 0.74 | 0.78 | 0.86 | 0.96 | 1.01 | 1.30 | 0.78 | 0.90 | 2.28 | 2.64 | 2.58 |
| Shares Out. | 190.7M | 184.0M | 179.1M | 171.9M | 164.8M | 158.6M | 158.1M | 152.7M | 276.4M | 260.9M | 128.0M | 123.1M | 119.4M |
| Valuation | |||||||||||||
| P/E Ratio | 19.2 | 12.9 | 11.6 | 14.3 | 12.4 | 12.3 | 13.9 | 9.1 | 7.2 | 15.5 | 21.8 | N/A | 24.7 |
| P/FCF | 23.1 | 11.7 | 10.8 | 12.0 | 10.4 | 10.4 | 8.5 | 8.9 | 23.4 | 19.8 | 21.5 | N/A | 24.5 |
| EV/EBIT | 10.9 | N/A | 7.2 | 7.1 | 9.3 | 9.5 | 8.7 | N/A | N/A | N/A | N/A | N/A | 17.2 |
| Price/Book | 4.8 | 3.3 | 2.8 | 3.1 | 3.6 | 3.6 | 5.7 | 6.1 | 4.8 | 6.9 | 11.4 | N/A | 13.1 |
| Price/Sales | 1.1 | 1.0 | 0.7 | 0.7 | 0.7 | 0.8 | 0.9 | 1.4 | 1.0 | 1.2 | 2.6 | N/A | 3.4 |
| FCF Yield | 4.3% | 8.6% | 9.3% | 8.3% | 9.6% | 9.6% | 11.7% | 11.2% | 8.5% | 10.1% | 4.6% | N/A | 4.1% |
| Market Cap | 5.9B | 4.0B | 3.5B | 3.7B | 4.1B | 4.4B | 9.4B | 10.2B | 8.2B | 14.7B | 24.5B | 0 | 27.1B |
| Avg. Price | 26.54 | 28.39 | 20.90 | 20.59 | 24.16 | 28.52 | 40.08 | 77.71 | 61.62 | 72.99 | 154.22 | 0.00 | 226.74 |
| Year-End Price | 31.07 | 21.67 | 19.71 | 21.64 | 25.11 | 27.71 | 59.73 | 66.96 | 59.15 | 112.92 | 191.61 | 0.00 | 226.74 |
WILLIAMS SONOMA INC passes 5 of 9 quality checks, suggesting mixed fundamentals.
WILLIAMS SONOMA INC trades at 25.6x trailing earnings, compared to its 15-year median P/E of 12.4x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 24.5x vs a median of 10.8x. The company's 5-year average ROIC is 119.0% with a gross margin of 44.3%. Total shareholder yield (dividends + buybacks) is 3.6%. At current prices, the estimated annualized return to fair value is +21.0%.
WILLIAMS SONOMA INC (WSM) has a net profit margin of 13.9%. This is a healthy margin.
WILLIAMS SONOMA INC (WSM) generated $1.1 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
WILLIAMS SONOMA INC (WSM) has a debt-to-equity ratio of 1.60. This indicates higher leverage, which may increase financial risk.
WILLIAMS SONOMA INC (WSM) reported earnings per share (EPS) of $8.84 in its most recent fiscal year.
WILLIAMS SONOMA INC (WSM) has a return on equity (ROE) of 51.5%. This indicates the company generates strong returns for shareholders.
WILLIAMS SONOMA INC (WSM) has a 5-year average gross margin of 44.3%. This indicates decent pricing power.
The Ledger Terminal provides 18 years of financial data for WILLIAMS SONOMA INC (WSM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
WILLIAMS SONOMA INC (WSM) has a book value per share of $16.91, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects tariff impacts to be front-half weighted in fiscal 2026, with moderation anticipated in the back half as the company laps prior-year tariff costs and benefits from supply chain efficiencies and mitigation strategies. The company is pursuing growth through disciplined execution of its product lineup, continued investment in collaborations, and expansion of growth initiatives including Dormify, Rejuvenation, and B2B, while maintaining focus on world-class customer service through supply chain improvements and AI-powered customer service tools. Capital allocation priorities include approximately $275 million in capital expenditures focused on e-commerce, retail optimization, and supply chain efficiency, with plans to open 20 new stores and reposition 19 existing locations in fiscal 2026, followed by anticipated store count growth of 1%-3% annually thereafter. Management remains committed to returning excess cash to shareholders through increased dividends and ongoing share repurchases, while acknowledging continued macroeconomic uncertainty and the absence of a meaningful housing recovery in current guidance assumptions.
Based on recent SEC filings and earnings calls, WILLIAMS SONOMA INC (WSM) has provided the following forward guidance: Net revenue comps: 2%-6% (FY2026); Total net revenue growth: 2.7%-6.7% (FY2026); Operating margin: 17.5%-18.1% (FY2026); Capital expenditures: approximately $275 million (FY2026); Interest income: approximately $25 million (FY2026), plus 4 additional metrics.
Operating margin (FY2026): “We expect operating margin to be in the range of 17.5%-18.1%.”
Capital expenditures (FY2026): “We expect to spend approximately $275 million in capital expenditures for the year.”
Interest income (FY2026): “We expect our full-year interest income to be approximately $25 million”
Effective tax rate (FY2026): “our full-year effective tax rate to be approximately 25.5%”
Store count growth (FY2027 and beyond): “After fiscal year 2026, we anticipate store count growth in the years that follow of approximately 1%-3% per year.”
Long-term revenue growth (Beyond FY2026): “Looking beyond fiscal year 2026, we are reiterating our long-term outlook for mid to high single-digit revenue growth and operating margins in the mid to high teens.”