Shares of Williams-Sonoma (NYSE: WSM) plunged 6.15% in pre-market trading on Thursday following the release of its first-quarter 2025 financial results. Despite beating revenue expectations, the home goods retailer's earnings miss and concerns about future growth prospects triggered a significant sell-off.
Williams-Sonoma reported Q1 revenue of $1.73 billion, surpassing the IBES estimate of $1.67 billion. However, the company's adjusted earnings per share (EPS) of $1.56 fell short of the expected $1.76, disappointing investors. The comparable brand revenue increased by 3.4% year-over-year, showing some positive momentum in sales growth.
While Williams-Sonoma reiterated its full-year outlook and provided long-term guidance, investors seem wary of the company's growth prospects in a challenging retail environment. The stock's sharp decline also comes amid broader market concerns, as the Dow Jones Industrial Average tumbled over 800 points the previous day due to renewed worries about fiscal policy. As Williams-Sonoma navigates these headwinds, investors will be closely watching for signs of improved profitability and sustainable growth in the coming quarters.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.