Williams-Sonoma, Inc. (NYSE:WSM) delivered a strong start to fiscal 2025, posting diluted earnings per share of $1.85, an 8.8% increase year-over-year, and achieving an operating margin of 16.8%. The company’s comparable brand revenue rose 3.4%, with flagship Williams-Sonoma brand growing 7.3% and Pottery Barn maintaining a five-year comparable gain of 46.7%. Its B2B business also grew 8%, and the retailer closed the quarter with $1 billion in cash and no debt on the balance sheet.

According to President and CEO Laura Alber and CFO Jeff Howie, the quarter’s performance was deeply tied to Williams-Sonoma’s application of traditional IT infrastructure to enhance operations.

From warehouse systems and sourcing automation to ERP and data-driven inventory control, the company’s success was enabled by mature IT capabilities refined over years. These internal systems are driving visibility, margin discipline, fulfillment accuracy, and personalized digital commerce, demonstrating the company’s pragmatic approach to technology-led growth.

Why It Matters: For CIOs and tech executives, Williams-Sonoma’s strategy offers a compelling example of how disciplined investment in foundational IT, not just frontier technologies, can deliver measurable business value. From ERP-driven inventory localization to quote-to-ship platforms supporting B2B growth, the company shows how to modernize legacy systems in service of operational excellence, digital agility, and competitive resilience. These IT choices create clear pathways for tech leadership to influence core business results.

• Supply Chain Optimization Anchored in Classic IT Discipline – Laura Alber credited much of the quarter’s margin expansion to strategic improvements in warehousing, sourcing, and delivery systems. “Our operational rigor continues to deliver efficiencies across the board, driven by the backbone of our supply chain technology,” she said. These savings, totaling 120 basis points, stemmed from tightly integrated back-end logistics platforms that have been honed over time. Rather than relying on external innovation alone, Williams-Sonoma used its in-house IT systems to respond to demand signals more accurately and reduce fulfillment costs without sacrificing quality.

• ERP and Data Systems Enable Responsive and Localized Inventory Control – Jeff Howie emphasized the company’s use of ERP and inventory systems to achieve precise merchandise allocation and improve sell-through. “Our strong results are a reflection of how we’re leveraging systems to manage inventory levels with precision and align our assortments to demand signals,” he said. These traditional IT platforms give the company real-time product visibility across stores and e-commerce, allowing for localized planning and reduced markdowns. This capability directly supported the 7.3% comp growth in the Williams-Sonoma brand and underscored how data governance can drive profitable growth.

• Back-End IT Enhances Front-End Digital Selling – Alber highlighted how robust internal technology platforms make the company’s digital performance possible. “Behind every digital transaction is a technology stack that we’ve been refining for years, this includes our order management systems, our customer data platform, and the supply chain systems that fulfill those orders,” she explained. Rather than chasing flashy front-end interfaces, Williams-Sonoma has focused on reliability, integration, and scale. These investments in foundational IT infrastructure are what enable fast, accurate, and consistent customer experiences across digital channels.

• IT Infrastructure Powers B2B Channel Growth and Custom Fulfillment – The 8% growth in the B2B segment was supported by systems that enable large-scale custom quoting, fulfillment, and project management. Howie noted, “The systems we’ve built give us the ability to customize, quote, and deliver on major projects with speed and accuracy.” This IT-driven capability is particularly important in commercial verticals like hospitality and education, where high-touch fulfillment and logistics require more than standard retail systems. Williams-Sonoma’s success here illustrates how traditional enterprise software can be a key growth enabler beyond consumer markets.

• IT-Supported Operational Flexibility Enables Resilience – Alber also discussed how internal systems give the company tactical agility in pricing and promotions, helping it maintain margin integrity and brand positioning. “Our technology allows us to be surgical and strategic with promotions,” she said. These IT-enabled insights let the company adapt to shifting demand conditions without defaulting to broad discounting. This level of control has become essential in a retail environment marked by inflationary pressures and aggressive competition, further proof that well-integrated IT plays a central role in preserving both profitability and brand equity.

Go Deeper -> Williams-Sonoma Quarter Results – Insider Monkey