# Williams-Sonoma, Inc. (WSM) — Stock CV

Williams-Sonoma, Inc. is a $28.5B consumer company. Revenue shrank 16.4% over the last year, it keeps 14¢ of every dollar of sales as profit, and its net debt equals ~0.2 years of free cash flow. It trades at 23.3× earnings — near the highest of its own history.

> 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.

## Identity

- **Ticker**: WSM
- **Sector**: Consumer Cyclical
- **Industry**: Specialty Retail
- **Headquarters**: SAN FRANCISCO, CA
- **Employees**: 19 800
- **Website**: https://www.williams-sonomainc.com
- **Market cap**: $28.5B
- **Last price**: $241.78
- **Financial profile**: Strong

## Vitals (TTM)

- **Revenue**: $17.1B
- **Net income**: $2.46B
- **Free cash flow**: $2.31B
- **Net debt**: $499M
- **P/E**: 23.3
- **Revenue growth (YoY)**: -16.4%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 65 |
| Growth | 5 |
| Profitability | 90 |
| Health | 82 |
| Quality | 77 |
| Moat | 82 |

## Qualifications (beginner checklist) — 10 of 11 passed

- [ ] Revenue growing — -16.4% YoY
- [x] Profitable — $2.46B TTM
- [x] Profit growing — +2.7% YoY
- [x] Generates cash — $2.31B TTM
- [x] Debt under control — ~0.2y of cash flow to repay
- [x] Established company — $28.5B market cap
- [x] Not printing shares — -13.9% shares over ~5y
- [x] Proven track record — 12/12 profitable years
- [x] Financially stable — Altman Z 6.8 — safe
- [x] Pays a dividend — yield 1.22%
- [x] Valuation not extreme — P/E 23.3

## Experience (career milestones)

- **FY2022** — Best year on record: $2.68B net income
- **FY2019** — Became debt-free: cash now exceeds total debt
- **FY2016** — Profitable every year on record: 12 consecutive profitable years in our data
- **FY2016** — Revenue already above $10B: $11.9B in first reported year
- **FY2016** — Positive free cash flow every year since: 12-year streak
- **2012** — The company launched a lifestyle brand offering personalized products, Mark and Graham, in November 2012
- **2011** — The company acquired Portland, Oregon-based Rejuvenation, a manufacturer and direct marketer of…
- **2002** — The West Elm brand was launched in 2002 with the release of a catalog
- **1998** — It was listed on the New York Stock Exchange starting in 1998
- **1986** — Williams-Sonoma, Inc., acquired Pottery Barn from Gap

## Strengths

- High gross margin (47.2%)
- Could repay net debt from ~0.5 years of free cash flow
- Interest covered 779.2× by operating earnings
- High returns on invested capital (ROIC 30.3%)
- Altman Z-Score 6.79 — low bankruptcy-risk zone

## Watch-outs

- Revenue shrinking 16.4% year over year

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2023 | $18.6B | $2.06B | $3.28B |
| FY2024 | $18.1B | $2.62B | $2.30B |
| FY2025 | $18.6B | $2.52B | $1.95B |
| FY2026 | $18.8B | $2.61B | $2.27B |
| FY2027 | $5.57B | $801M | $678M |

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Source: https://stockcv.com/WSM — derived from company filings; may be delayed or incomplete. Information, not investment advice.