01:41 PM EDT, 05/22/2025 (MT Newswires) -- Williams-Sonoma's ( WSM ) fiscal first-quarter results came in stronger than expected, while the home goods retailer maintained its full-year outlook despite incremental costs from tariffs.

Per-share earnings dropped to $1.85 from $1.99 a year earlier, but topped the FactSet-polled consensus of $1.73. Net revenue rose to $1.73 billion from $1.66 billion, while analysts expected $1.67 billion. Comparable brand sales grew 3.4%, versus market expectations indicating a 0.3% decline.

"We saw an acceleration of the positive comp trend coming out of (the fourth quarter), despite consumer distraction with tariffs, continued geopolitical uncertainty and no material improvement in housing market," Chief Executive Laura Alber said on an earnings call, according to a FactSet transcript.

Williams-Sonoma ( WSM ) continues to anticipate a 1.5% decline to a 1.5% growth in net revenue for fiscal 2025. Analysts are projecting full-year sales to fall to $7.67 billion from the previous year's $7.71 billion. The company is guiding comparable sales to be flat to up 3%, compared with market views for 1.2% growth.

The guidance takes into account tariffs-related incremental costs. As part of its efforts to mitigate the impact of duties, the company is resourcing goods to lower-tariff countries and "carefully taking select price increases on products that offer strong value with a focus on maintaining competitive pricing," Alber told analysts.

Share of the company were down 5.4% intraday Thursday.

After announcing sweeping new import tariffs in early April, US President Donald Trump declared a 90-day pause on certain duties for non-retaliating countries. Recently, the US and China agreed to suspend most levies on each other's goods for a period of 90 days, while Washington reached a trade deal with the UK.

"We recognize that the housing market and therefore the furniture industry may remain soft this year as interest rates are still high," Albert said. "Therefore, our growth strategy emphasizes a broad and inspirational non-furniture assortment, including seasonal and decorative accessories, textiles and housewares."

Over the long term, the company continues to expect "mid- to high-single-digit revenue growth, with operating margins in the mid to high teens," Chief Financial Officer Jeff Howie told analysts.

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