Williams-Sonoma(WSM) - 2026 Q1 - Quarterly Results

Financial Performance - Q1 comparable brand revenue increased by 3.4%, with net revenues of $1.73 billion compared to$1.66 billion in Q1 2024[1][16] - Operating margin for Q1 was 16.8%, down 230 basis points year-over-year, while diluted EPS was $1.85, reflecting a 7.0$231,263 thousand, a decrease of 11.2% compared to $260,416 thousand for the same period in 2024[22] - Net cash provided by operating activities was$118,949 thousand, a significant decrease of 47.5% from $226,788 thousand in the same period last year[22] Inventory and Merchandise - Merchandise inventories rose by 10.3$1.3 billion, as the company strategically pulled forward receipts to mitigate potential tariff impacts[4] - Merchandise inventories increased slightly to $1,335,356 thousand as of May 4, 2025, compared to$1,332,429 thousand as of February 2, 2025, reflecting a marginal increase of 0.2%[19] Shareholder Returns - The company maintained a strong liquidity position with $1.0 billion in cash and$119 million in operating cash flow, returning $165 million to shareholders through stock repurchases and dividends[4] - The company has$1.1 billion remaining under its stock repurchase authorization, indicating ongoing commitment to returning value to shareholders[4] - The company repurchased $89,971 thousand of common stock during the period, compared to$43,781 thousand in the previous year, indicating a significant increase in stock buybacks[22] Future Outlook - For fiscal 2025, the company expects annual net revenues to range from -1.5% to +1.5%, with comparable sales growth projected between flat to +3.0%[9] - The company reiterated its long-term guidance of mid-to-high single-digit annual net revenue growth and operating margins in the mid-to-high teens[9] - The company is focused on product innovation and customer service amidst macroeconomic uncertainties, expressing optimism for 2025[4] Asset and Liability Management - Total assets decreased to $5,157,315 thousand as of May 4, 2025, down from$5,301,607 thousand as of February 2, 2025, representing a decline of approximately 2.7%[19] - Cash and cash equivalents decreased to $1,047,181 thousand from$1,212,977 thousand at the beginning of the period, reflecting a decrease of 13.6%[22] - Total current liabilities decreased to $1,721,843 thousand as of May 4, 2025, down from$1,911,974 thousand as of February 2, 2025, a reduction of approximately 9.9%[19] - The company reported a decrease in accounts payable to $553,655 thousand as of May 4, 2025, down from$645,667 thousand as of February 2, 2025, a decline of approximately 14.2%[22] Retail Operations - The number of retail stores decreased to 508 as of May 4, 2025, down from 512 at the beginning of the quarter, indicating a net closure of 4 stores[20] - All brands reported positive comparable sales trends in Q1, with Williams Sonoma brand showing a 7.3% increase[3][16]