Williams-Sonoma gains in a weak housing market as margins improve

WilliamsSonoma has outperformed many retail peers this year even as a sluggish housing market has weighed on home goods demand. Investors have focused on the company’s ability to protect profitability, grow operating margins, and keep sales steady without relying heavily on discounts. The company’s business has benefited from fullprice selling, strong ecommerce performance, and broader use of artificial intelligence across customer service and operations. It has also seen strength in businesstobusiness sales, including growth in categories such as senior housing, cruise ships, and student housing. Analysts say momentum at Pottery Barn, WilliamsSonoma’s largest brand, could support future growth. Still, tariffs remain a risk because most of the company’s merchandise is sourced from overseas.