# Williams-Sonoma (WSM) Forecast Calculator

Interactive five-year financial forecast and DCF for Williams-Sonoma. Adjust revenue growth, margins, capex, and WACC to update revenue, free cash flow, and enterprise value.

- Canonical: https://finamodel.com/companies/williams-sonoma/forecast
- Industry: Consumer
- Forecast start year: 2026

## Historical data

| Year | Revenue | Free cash flow | EBITDA | Net income |
|---:|---:|---:|---:|---:|
| 2021 | 5898008000 | 421018000 | 653633000 | 356062000 |
| 2022 | 6783189000 | 1105335000 | 1099352000 | 680714000 |
| 2023 | 8245936000 | 1144630000 | 1649203000 | 1126337000 |
| 2024 | 8674417000 | 698705000 | 1712575000 | 1127904000 |
| 2025 | 7750652000 | 1491815000 | 1476783000 | 949762000 |

## Frequently asked questions

### What is Williams-Sonoma, Inc. and what products does it sell?

Williams-Sonoma, Inc. is an omni-channel specialty retailer offering high-quality products for the home. The company designs, sources, and sells furniture, homewares, and decorative accessories through its e-commerce platforms, direct-mail catalogues, and retail stores. Its key brands include Pottery Barn, West Elm, and Williams Sonoma.

### How does Williams-Sonoma generate revenue across its different brands?

Williams-Sonoma generates revenue through an omni-channel approach, leveraging its e-commerce engine, direct-mail catalogues, and physical retail stores. For example, Pottery Barn's revenue is driven by e-commerce traffic, conversion rates, average order value, and retail square footage sales. West Elm's revenue is primarily based on omni-channel customer count and annual spend per customer.

### What is Williams-Sonoma's typical capital expenditure as a percentage of revenue, and what does it primarily invest in?

Williams-Sonoma's capital expenditure typically ranges from 2.5% to 3.5% of revenue, with FY2024 capex at $222 million on $7.71 billion revenue. Approximately 60% of this capex is allocated to growth initiatives such as technology, e-commerce platforms, and supply chain automation. The company also invests in expanding its Rejuvenation store footprint and upgrading regional distribution hubs.

### What are the key assumptions used in the Williams-Sonoma financial model regarding revenue growth and operating expenses?

The Williams-Sonoma financial model assumes a revenue growth rate of approximately 7.07%. For operating expenses, key assumptions include Cost of Goods Sold at about 59.16% of revenue and Selling, General, and Administrative expenses at around 26.39% of revenue. Depreciation and Amortization is assumed to be about 2.76% of revenue.

### What is the primary purpose of the Williams-Sonoma financial model?

The primary purpose of the Williams-Sonoma financial model is to evaluate the company's equity valuation and its capacity to generate cash flow. It aims to determine if Williams-Sonoma can sustain its high operating margins, fund aggressive share repurchase programs, and maintain dividend growth. This analysis considers a volatile macroeconomic environment and housing market headwinds.

### Can I download an Excel financial model for Williams-Sonoma, and what is its forecast horizon?

Yes, an Excel financial model for Williams-Sonoma (WSM) is available for download. This model provides a forecast horizon spanning from Fiscal Year 2026 through Fiscal Year 2030.