RH vs Williams-Sonoma
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KIRA’s take AI analyst
I put RH and Williams-Sonoma side by side, using each one’s latest annual report. Here is what stands out:
- Williams-Sonoma is the larger business, with $7.8B of revenue in fiscal 2025 against $3.4B for RH, about 2.3 times as much.
- RH grew revenue faster (8.1%, against 1.2%).
- Williams-Sonoma kept more of each dollar of sales as operating profit (18.1% operating margin, against 11.3%).
- Williams-Sonoma turned more of its sales into free cash flow (13.5% FCF margin, against 7.3%).
- Investors pay more for each dollar of Williams-Sonoma’s earnings: a P/E of 25.6x against 24.1x for RH.
Who comes out ahead
Of the 7 measures where higher (or lower) is clearly better, how many each company leads.
RH
RH
2/7
Revenue growth5-year growth
Williams-Sonoma
WSM
5/7
Gross marginOperating marginNet marginFCF marginShare count change
Side by side
Best in the row
| Latest fiscal year | RH FY25 | WSM FY25 |
|---|---|---|
| Size | ||
| Market cap | $2.7B | $29.7B |
| Revenue | $3.4B | $7.8B |
| Free cash flow | $252M | $1.1B |
| Net income | $125M | $1.1B |
| Growth | ||
| Revenue growth | 8.1% | 1.2% |
| 5-year growth | 3.8% | 2.9% |
| Share count change | −1.0% | −3.8% |
| Profitability | ||
| Gross margin | 44.1% | 46.2% |
| Operating margin | 11.3% | 18.1% |
| Net margin | 3.6% | 13.9% |
| FCF margin | 7.3% | 13.5% |
| Return on capital | — | 106.5% |
| Return on equity | — | 51.5% |
| Balance sheet | ||
| Net debt | — | −$1.0B |
| Net debt / EBITDA | — | −0.6x |
| Dividends and buybacks | $0.0M | $1.2B |
| Valuation & quality | ||
| P/E | 24.1x | 25.6x |
| Piotroski F-score | — | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.