Williams-Sonoma sinks after dour annual margin forecast

Williams-Sonoma

19/03/2025 14:58

** 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,

 (Reporting by Neil J Kanatt in Bengaluru)

 ((Neil.JKanatt@thomsonreuters.com;))