Williams-Sonoma (WSM) stock is seeing a decline today due to the company's disappointing fourth-quarter 2024 results and its underwhelming full-year 2025 guidance. The guidance predicts no growth in sales and operating margins that are lower than anticipated, leading to a 12.1% drop in the stock price during the morning session.

Despite beating revenue and EPS expectations in the quarter, along with an improvement in operating margins indicating strong profitability, the market reacted negatively to the outlook presented by the company. Williams-Sonoma's shares have been volatile, experiencing 19 significant movements over the past year, with the latest drop being a rare occurrence for the company and highlighting the market's reaction to the news.

In contrast, four months ago, the stock surged by 30.5% following the impressive third-quarter results, where revenue exceeded predictions, and gross margin showed improvement compared to the previous year. With positive sales trends and market-share gains, the company's growth rate saw moderation, prompting an upward revision of revenue and operating profit guidance by management. The stock is currently trading 25.6% below its 52-week high from February 2025, and investors who purchased shares five years ago are now contemplating a significant return on their investment.

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