WSM WILLIAMS SONOMA INC

Overview and Growth

In fiscal 2025, WILLIAMS SONOMA INC recorded $7.81B of revenue, net income of $1.09B, and an operating cash inflow of $1.31B. Revenue of $7.81B sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line expanded 1.2% from $7.71B in fiscal 2024, increasing the company’s operating scale. On a per-share basis, diluted EPS was $8.84, which connects the reported earnings outcome with the company’s diluted share count. Against diluted EPS of $8.79 in fiscal 2024, the current result was 0.6% higher. Asset turnover was 1.44x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

After reported cost of revenue, the company retained $3.60B as gross profit before recognizing operating expenses and other items. The gross-profit relationship equaled 46.2% of revenue, quantifying the portion retained before operating expenses were recognized. The reported operating result was $1.42B, capturing profitability after direct costs and the operating expenses reflected in the statements. The operating result equaled 18.1% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. The bottom-line result was net income of $1.09B, after the operating, financing, tax, and other items recognized for the period. Net margin was 13.9%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $1.45B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. The pretax margin was 18.6%, relating income before taxes directly to revenue. The company recognized $364.12M of income tax for the period, completing the transition from pretax income to net income. Relative to pretax income, the tax provision measured 25.1%, quantifying the portion of pre-tax earnings paid in income tax. The relationship between net income and period-end equity was 52.3%, indicating the profitability achieved on book capital. Return on period-end assets was 20.1%, connecting net income with the company’s total asset base.

Liquidity and Capital Structure

Total assets were $5.41B, supported by $3.33B of liabilities and $2.08B of shareholder equity. At period end, current assets of $2.71B compared with current liabilities of $1.95B, defining the company’s short-term resource position. The current ratio was 1.39x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $1.02B, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 52.2% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Liabilities represented 61.5% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 18.8%, a balance-sheet composition measure rather than a liquidity forecast. Compared with $5.30B in fiscal 2024, the current asset base moved 2.1% and finished higher.

Cash Flow and Earnings Quality

The company reported $1.31B of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 1.21x, comparing cash generated by operations with the bottom-line earnings result. Capital spending was $259.44M, absorbing part of the cash generated from operations before free cash flow. Capital expenditures represented 19.7% of operating cash flow, leaving the remainder available as free cash flow. Free cash flow came to $1.06B, leaving a positive amount after capital expenditures. Relative to revenue, free cash flow equaled 13.5%, showing how much sales converted into cash after investment. Free cash flow equaled 19.5% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Feb 1, 2026. Analysis generated Oct 21, 2026.