Williams-Sonoma shares rise 23% despite weak housing market — CNBC

In the United States, shares of home goods retailer Williams-Sonoma have risen by about 23% since the start of the year as of Friday, outperforming the S&P 1500 Home Furnishings index and competitors Wayfair, Arhaus, Ethan Allen and RH. CNBC reports.

The company operates amid a sluggish U.S. housing market weighed down by high interest rates, as well as rising consumer spending on energy and food. The United States accounts for 96% of Williams-Sonoma's sales. At the same time, its share price has risen by more than 200% over the past three years.

Profitability and online sales

Williams-Sonoma, which includes its namesake brand, Pottery Barn and West Elm, has improved the profitability of its business. Its operating margin increased from 7.9% in 2019 to 17.6% in 2021. After the pandemic-driven housing market boom ended, the company's sales declined, but it maintained profitability by reducing promotions and optimizing its supply chain and deliveries.

In 2025, Williams-Sonoma's revenue totaled $7.81 billion, compared with $8.25 billion in 2021, while operating profit remained nearly at the same level. More than two-thirds of sales come from e-commerce. The company also uses artificial intelligence: according to its data, customers who interact with the Olive AI assistant make purchases three times more often than those who do not use it.

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B2B and Pottery Barn

Williams-Sonoma's B2B sales rose by nearly 15% in the quarter ended in August. The company is developing this segment in cruise ships, senior housing and student housing. The B2B business currently generates about $1 billion in annual revenue, and the company believes it could double over the next several years.

Pottery Barn, the group's largest brand, reduced revenue by more than 15% in fiscal years 2022–2025, but its comparable sales increased by 5.1% in the latest quarter ended in August. Williams-Sonoma previously acknowledged that it had placed too much emphasis on decor in an effort to offset falling furniture sales.

Tariff risk

Tariffs remain a risk for the company, as more than 80% of its product purchases in 2025 came from foreign manufacturers. Williams-Sonoma received a $200 million tariff refund following a U.S. Supreme Court ruling in February. The company said it reimbursed suppliers $47.5 million and spent $10 million on $1,000 contributions to 401(k) plans for each employee.