Williams Sonoma - AI Stock Analysis

Analysis generated November 26, 2025

Williams-Sonoma, Inc. is a United States-based high-end retailer of culinary products, cookware, and home furnishings. The company operates a host of well-known brands including Williams Sonoma, Pottery Barn, West Elm, and Rejuvenation. Its business model is an adept blend of e-commerce and physical retail locations, enabling it to capitalize on a diversified revenue stream. Williams Sonoma, known for its premium offerings, remains a strong player in the competitive industry of specialty retail.

Fundamental Analysis

The revenue for the last quarter was $1.88 billion, an increase of 2.51% from the previous quarter, and a 4.56% increase year over year. This steady growth indicates resilient business operations and an effective growth strategy. However, the net income for the last quarter was $242 million, showing a decline of 2.41% from the previous quarter and a 2.96% decrease year over year. This indicates shrinking profit margins, a negative sign for potential investors.

EBITDA for the last quarter was $319 million, marking a significant decrease of 18.98% compared to the previous quarter and a 15.80% drop from the same quarter last year. This dramatic fall could be a red flag indicating potential operational inefficiencies or increased costs. The current P/E ratio stands at 19.56, suggesting that the stock is reasonably valued given the company's earnings but does not provide any strong buy or sell signal.

Additionally, insider selling activity in recent months may indicate a bearish sentiment among the company's executives, hinting at possible concerns within the company's leadership about future stock performance.

Technical Analysis

Williams Sonoma's current stock price is $181.12, a 4.21% decrease over the past month, which may raise short-term concerns. However, compared to a year ago, the stock price has increased by 7.27%, pointing to a generally positive long-term trend. Despite this, the overall trend remains bearish.

The current 10-day simple moving average (SMA10) is 177.75, marginally lower than the previous SMA10 of 177.86, suggesting a potential downward trend in the price movement. The RSI (Relative Strength Index) stands at 78.1, indicating that the stock is potentially overbought, a bearish condition that could lead to a price correction.

Alternative Data Analysis

Williams Sonoma currently has 1,231 open positions according to leading job boards, a 22% increase, suggesting optimism and expansion within the company. The business outlook among employees is neutral, hinting no significant optimism or pessimism within the workforce.

The company’s website has recorded 8.5 million visitors, up by 26% in recent months, indicating a potential increase in customer acquisition. This bullish trend is a positive indicator for future revenue growth. Williams Sonoma’s Instagram and Twitter pages have 1.9 million and 99,000 followers, respectively. With no meaningful increase or decrease in followers and a loss of interest on Twitter, social media engagement appears stagnant.

According to the AltIndex AI score, which integrates fundamental, technical, and alternative data, Williams Sonoma scores a 54, suggesting a hold signal.

Conclusion and Recommendation

Based on the data reviewed, Williams Sonoma exhibits a mixed outlook with strong revenue growth but declining profitability and EBITDA. The stock price has increased year over year, but short-term trends and technical indicators suggest potential bearishness. Alternative data reveals positive growth in job postings and web traffic but stagnation in social media engagement.

Given the balanced pros and cons, a hold recommendation is advisable, particularly until further clarity on the company's profitability trends and consumer engagement emerges.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.