Williams-Sonoma, Inc. (WSM) SEC Filings & Earnings Calls

Tariff uncertainty

“The tariff environment has materially changed over the last year, and we expect that uncertainty to continue throughout fiscal 2026.” · word for word

Macroeconomic headwinds

“the current uncertain macroeconomic environment, including war, higher oil prices, the evolving tariff and trade policy landscape, a stagnant housing market, elevated interest rates, layoffs, inflationary pressure, economic uncertainty and global geopolitical instability could continue to impact our business.” · word for word

Tariff costs and trade policy uncertainty remain a key risk; guidance assumes no further tariff refunds.

“Guidance assumes (i) all tariffs currently in place will remain for fiscal 2026, (ii) oil prices will remain elevated for the remainder of the year, and (iii) no benefit from tariff refunds or related interest.”

Housing market headwinds could pressure demand despite current outperformance.

“We are delivering compounding results despite the housing market and other macroeconomic events.” · word for word

Tariff cost pressure on gross margin

“lower merchandise margins of 100 basis points as a result of the flow-through of tariffs into cost of goods sold” · word for word

Uncertainty of tariff refunds

“due to the uncertainty with respect to the receipt of these refunds, we did not record a receivable” · word for word

Tariff cost pressure on merchandise margins

“Incremental tariff costs of approximately $60 million in inventory; guidance assumes no refund of tariffs paid.” · word for word

Housing market cyclicality

“Company acknowledges cyclical swings of the housing market as a risk factor.”

Tariff Exposure

“the only adjustment made to diluted EPS was to exclude the impact of the tariffs introduced in 2025” · word for word

Housing Market Slowdown

“the continuation of elevated interest rates and a slow housing market” · word for word

Macroeconomic Uncertainty

“Given the challenging macroeconomic backdrop, including the evolving tariff landscape and the continuation of elevated interest rates and a slow housing market” · word for word

Tariff exposure on imported goods

“Changes to tariffs could result in increased prices and/or costs of goods or delays in products received from our vendors and could adversely affect our results of operations.” · word for word

Supply chain disruption from geopolitical instability

“instability in the Middle East is deterring commercial vessels from traveling through the Suez Canal and the Strait of Hormuz, and as a result, vessels are now traveling around the Cape of Good Hope, South Africa, resulting in longer transit times and increased costs.” · word for word

Consumer discretionary spending decline

“declines in consumer spending on home furnishings and kitchen products in general could reduce demand for our products.” · word for word

Tariff cost pressure: incremental tariff costs of ~$80 million in inventories; guidance assumes no refund and all current tariffs remain, with front-loaded impact in H1 FY26.

“Merchandise inventories +9.8% to the fourth quarter LY to $1.5 billion, driven by incremental tariff costs of approximately $80 million. Our guidance includes (i) no refund of International Emergency Economic Powers Act tariffs paid, (ii) all tariff rates currently in place remain for fiscal 2026, including the Section 232 tariffs, the current Section 301 ta” · word for word

Occupancy deleverage: occupancy costs increased 4.9% to $215 million in Q4, contributing to gross margin pressure.

“Occupancy costs of $215 million, +4.9% to LY.” · word for word

Tariff Cost Pressure

“our incremental tariff rate has more than doubled from 14% in May 2025 to 29% as of this Quarterly Report on Form 10-Q. These tariffs, as well as any future tariffs, are expected to result in increased cost for imported materials and finished goods. While we believe that we can offset a portion of these costs, we may not be able to offset all the additional ” · word for word

Macroeconomic Uncertainty

“the current uncertain macroeconomic environment, including the evolving tariff and trade policy landscape, a weak housing market, elevated interest rates, layoffs, inflationary pressure, economic uncertainty and global geopolitical instability could negatively impact our business.” · word for word

Tariff cost pressure on margins and inventory

“Updated guidance includes multiple tariff layers: Section 232 on furniture, China 20%, India 50%, Vietnam 20%, rest of world 18%, steel/aluminum 50%, copper 50%. Inventory pull-forward to mitigate.”

Occupancy cost inflation

“Occupancy costs $207M +5.9% to LY, partially offsetting margin gains.”

Incentive compensation and advertising expense growth

“SG&A +60bps driven by higher performance-based incentive compensation and advertising.”