Williams-Sonoma's stock has soared in a sluggish housing market. Here's how it won over Wall Street
Article excerpt
In this article Williams-Sonoma is one of the top-performing retail stocks of the year, despite weakness in the housing market that has dampened sales of home goods. The company's share price had climbed about 23% year to date as of Friday, outperforming the S&P 1500 Home Furnishings index as well as competitors such as Wayfair, Arhaus, Ethan Allen and RH, formerly known as Restoration Hardware. "We've been working on the product, we've been working on the service and the quality, but also the storytelling," said Williams-Sonoma CEO Laura Alber in a late August interview on CNBC's "Mad Money. " "And that is also what's attracting ... many new customers to our brands, and then bringing people back to our brands." The traditional investing thesis around home furnishings often revolves around home sales: As people buy new homes, they also purchase new furniture. In the U.S., which accounts for 96% of Williams-Sonoma's sales, consumers face a sluggish housing market driven by high interest rates, along with rising energy and food costs. Yet over a three-year period, Williams-Sonoma shares have climbed more than 200%. Fixing the underlying business fundamentals has been key to the success of the company, which includes its namesake brand along with retailers such as Pottery Barn and West Elm. In 2019, the company's operating margin, which is a key measure of profitability...
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Revenue was $7.81 billion in 2025, down from $8.25 billion in 2021, but its operating income was nearly the same.
