02:45 PM EDT, 03/20/2025 (MT Newswires) -- Williams-Sonoma ( WSM ) had strong fiscal Q4 results, but its operating margin outlook was "disappointing" because of tariff headwinds, Wedbush said in a note Thursday.

The company's fiscal Q4 revenue was better than expected as it recognized improving furniture trends, and its gross margins of 47.3% improved 130 basis points year over year, Wedbush analysts said.

The company's operating margin guidance came in lower than expected at 17.4% to 17.8%, compared with the consensus of 18.1%, and reflected the higher costs from all currently announced tariffs.

The analysts noted that although Williams-Sonoma ( WSM ) acknowledged that its fiscal Q1 was not trending as strongly as the previous quarter, the company did not copy other retailers in announcing a broad-based slowdown for the period.

Wedbush lowered its target price for the company to $170 from $190 and reiterated the rating at neutral.

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