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Williams-Sonoma sinks after dour annual margin forecast

ReutersMar 19, 2025 2:58 PM

Shares of Pottery Barn owner Williams-Sonoma WSM.N fall as much as 13.5% at $149.06 in early trade

Stock set for its worst day since May 2022 if losses hold

Co sees fiscal year 2025 operating margin below what it reported for 2024

Brokerage RBC Capital Markets notes gross margin gains fading, says co is likely to see modest gross margin pressure through out 2025

Margin guide seems conservative given prior significant multi-year momentum but worrisome nonetheless- brokerage TD Cowen

RBC also notes that housing sector remains pressured but says WSM is well-positioned for an eventual housing recovery

Co also forecast annual same-store sales slightly above estimates after Q4 sales, profit beat estimates

WSM has fallen 7% YTD,

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