Why WSM beats the market
Up 271% over three years while the S&P 500 rose 80%.
“In fiscal 2025, Pottery Barn, our largest brand, saw comparable brand revenue ('brand comp') growth of 0.4% driven by strength in retail”
WSM's Quality Score rose 1 point on Tue, Nov 10, to 18. Trading was quieter than usual (2 chart checks started).
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Up 271% over three years while the S&P 500 rose 80%.
“In fiscal 2025, Pottery Barn, our largest brand, saw comparable brand revenue ('brand comp') growth of 0.4% driven by strength in retail”
| The company | 3.6% fewer shares than a year ago |
| Its score | Up:Excellent or better for 23 days in a row |
| Latest filing | 8-K, Oct 19 |
After its last 4 reports it closed +1.3% on average, higher 3 of 4 times.
Excellentfor quality, not price, 8 of 14 chart checks firingWhat the Quality Score means
WSM is #4 of 302 by Quality Score.
| Rank | Stock | Quality Score |
|---|---|---|
| 1 | ||
| 2 | ||
| 3 | ||
| Open for its score | ||
| Open for its score | ||
| Open for its score | ||
| Open for its score | ||
| 4 |
Expected to report Wed Nov 18, before the open (in 8 days).
What an earnings report is: every 3 months, a company tells everyone how much it sold and earned. We read the figures, the outlook, and how the stock moved after.
The figures are not read from the release yet.
“Gross margin of 51.6% on a GAAP basis, +450bps to LY driven by (i) IEEPA tariff refunds, net of tariff-related vendor concessions, of +610bps, (ii) occupancy leverage of +40bps, and (iii) supply chain efficiencies of +30bps, partially offset by (iv) lower merchandise margins of -230bps primarily driven by tariff costs.”
WSM's results filing gives no sales by line in a table we read.
| Measure | Figure |
|---|---|
| Annual net revenues growth | 4.7% to 7.2% |
“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.”
From its results filing (SEC filing · Aug 26)
Sales grew 2.9% a year over 5 years, fiscal 2020 to 2025.
Pays $3.04 a share a year.
| Reported | Gap | Reaction | 5 days |
|---|---|---|---|
| Aug 26, 2026 | -4.6% | +1.1% | -5.4% |
| May 21, 2026 | +1.1% | +6.5% | +14.1% |
| Mar 18, 2026 | +2.1% | +1.1% | -0.6% |
Sales grew in five of the last seven years, to $7.8B in 2025. It made a profit in each of the eight years.
RSI 57.6, MACD below signal, above both averages. Not scored.
Its dividends come to 27% of its free cash flow.
| Dividend | $3.04 a share a year |
| Paid out | About $358M a year |
| Free cash flow | $1.3B |
| Record | Raised each of the last 5 years |
9 trades disclosed in the last six months. The newest:
Officers and directors with a Form 4 in the last 12 months.
In ETFs: WSM is 0.1% of VIG, 0.1% of VYM, and under 0.1% of DGRO, the most of the 24 funds Breakaway covers, by their holdings as filed for Jul 31, 2026.
With a retail and direct-to-consumer presence, Williams-Sonoma is a player in the nearly $300 billion domestic home category and $450 billion international home market, focused on expanding its exposure in the B2B ($80 billion total addressable market), marketplace, and franchise areas. Namesake Williams-Sonoma (153 stores) offers high-end cooking essentials, while Pottery Barn (181) provides casual home accessories. West Elm (117) is an emerging concept for young professionals, and Rejuvenation (13) offers lighting and house parts. Brand extensions include Pottery Barn Kids and Pottery Barn Teen (43) as well as Mark & Graham and GreenRow. Williams-Sonoma also has a business-to-business team that supports projects that range from residential to large-scale commercial.
“The specialty e-commerce and retail businesses are highly competitive.”
WSM scores 18 today, which Breakaway calls Excellent. It is #4 of 302 in Consumer Discretionary by Quality Score, with 8 of 14 chart checks firing. Up 271% over three years while the S&P 500 rose 80%. Breakaway does not say whether to buy any stock: the score does not know your situation, and it is not a recommendation to buy or sell anything. Please do your own research.
WSM scores 18 today, which Breakaway calls Excellent (15 to 19). That is #4 of 302 in Consumer Discretionary by Quality Score. The score adds up the chart checks, the trend, the company's filed sales, its profits, the news, insider trades, and Congress trades. The section above lists the lines behind WSM's 18.
Expected to report Wed Nov 18, before the open, a date Breakaway expects from the company's usual timing; the company has not confirmed it. WSM closed higher after 3 of its last 4 reports. Past behavior, not a forecast.
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Insider and Congress trades, the chart, and the financials, in one score.
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