Williams-Sonoma Inc. reported strong first-quarter 2025 results, exceeding analyst expectations despite challenges from tariffs and a difficult housing market. The company posted earnings per share of $1.85, surpassing the estimated $1.75, and revenue of $1.73 billion, above the $1.67 billion forecast. Comparable sales increased by 3.4%, significantly outperforming the 0.4% estimate, with all brands showing positive comps, including a 7% gain for the Williams Sonoma brand. Operating margin rose to 16.8% when excluding last year's freight adjustment benefit. Williams-Sonoma maintained its full-year 2025 outlook amid ongoing tariff pressures, which have led to higher freight and tariff mitigation expenses impacting merchandise margins. The company proactively increased inventory by 10% to 117 days of supply to offset tariff impacts and ended the quarter with over $1 billion in net cash after repurchasing $90 million in stock. CEO comments highlighted active efforts to mitigate tariff effects, emphasizing that most products sold are core items with lower markdown risks. The furniture segment posted positive comparable sales for the first time in nine quarters, suggesting market share gains. Despite the strong results, shares fell 5% in pre-market trading.