Williams-Sonoma (NYSE:WSM) announced its Q1 earnings on Thursday, surpassing analyst expectations for both earnings per share and revenue. Despite the strong results, shares dipped about 4.7% in premarket trading.

The company reported Q1 EPS of $1.85, exceeding the consensus estimate of $1.74 by $0.11. Revenue came in at $1.73 billion, beating the anticipated $1.67 billion.

Comparable brand revenue increased 3.4% during the quarter, and the operating margin stood at a healthy 16.8%.

“We are proud to deliver strong results in the first quarter of 2025, driven by a positive top-line comp and continued strength in our profitability,” said Laura Alber, Williams-Sonoma’s President and CEO.

Alber acknowledged that “existing macroeconomic and geopolitical uncertainties are a focal point for the market,” but reassured that “volatility is not new in our industry, and we are confident in our ability to adapt and navigate whatever lies ahead.”

Looking forward, Williams-Sonoma reaffirmed its full-year guidance despite the challenges posed by ongoing tariff-related costs.

The company projects net revenues for the year to fall within a range of -1.5% to +1.5%, factoring in the effects of the extra 53rd week in fiscal 2024. Comparable sales are expected to be flat to up 3.0%.

Operating margins are forecasted to range between 17.4% and 17.8%.

“Over the long term, we continue to expect mid-to-high single-digit annual net revenue growth with an operating margin in the mid-to-high teens,” the company added.

Williams-Sonoma stock price