Williams-Sonoma has been treading water for the past six months, recording a small return of 2.9% while holding steady at $192.94.

Is now the time to buy Williams-Sonoma, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it’s free.

Why Is Williams-Sonoma Not Exciting?

We're swiping left on Williams-Sonoma for now. Here are three reasons you should be careful with WSM and a stock we'd rather own.

1. Revenue Spiraling Downwards

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Williams-Sonoma’s demand was weak over the last three years as its sales fell at a 3.5% annual rate. This wasn’t a great result and is a sign of lacking business quality.

2. Stores Are Closing, a Headwind for Revenue

The number of stores a retailer operates is a critical driver of how quickly company-level sales can grow.

Williams-Sonoma operated 506 locations in the latest quarter. Over the last two years, the company has generally closed its stores, averaging 1.9% annual declines.

When a retailer shutters stores, it usually means that brick-and-mortar demand is less than supply, and it is responding by closing underperforming locations to improve profitability.

3. Flat Same-Store Sales Indicate Weak Demand

Same-store sales show the change in sales for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year. This is a key performance indicator because it measures organic growth.

Williams-Sonoma’s demand within its existing locations has barely increased over the last two years as its same-store sales were flat.

Final Judgment

Williams-Sonoma’s business quality ultimately falls short of our standards. That said, the stock currently trades at 20.9× forward P/E (or $192.94 per share). Investors with a higher risk tolerance might like the company, but we think the potential downside is too great. We're pretty confident there are more exciting stocks to buy at the moment. Let us point you toward our favorite semiconductor picks and shovels play.

Stocks We Would Buy Instead of Williams-Sonoma

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.