# Williams-Sonoma defies housing slump with margin magic > The home furnishings retailer is thriving despite a weak housing market by cutting discounts, boosting e-commerce, and deploying AI. - Title: Williams-Sonoma defies housing slump with margin magic · CNBC - Summary: The home furnishings retailer is thriving despite a weak housing market by cutting discounts, boosting e-commerce, and deploying AI. Williams-Sonoma proved… - Keywords: williams-sonoma, home furnishings, retail stocks, operating margins, housing market, pottery barn, e-commerce, ai integration, tariffs, laura alber, business, finance - Source: CNBC — https://cnbc.com/2026/09/20/williams-sonoma-stock-rises-housing-market.html - Author: Ryan Baker - Published: 2026-09-20T12:00:01+00:00 - Read time: 2 min - Topics: williams-sonoma, home furnishings, retail stocks, operating margins, housing market, pottery barn, e-commerce, ai integration, tariffs, laura alber, business, finance ## Stock soars despite housing weakness Williams-Sonoma shares climbed 23% year to date, outperforming home furnishings peers and the broader retail market even as the housing sector struggles. ## Margins expanded dramatically Operating margin jumped from 7.9% in 2019 to 17.6% by 2021, proving the company could sustain profitability even after the post-Covid housing boom ended and sales fell. ## Fewer discounts, stronger margins Williams-Sonoma stopped running heavy promotions and sold products at full price, spreading sales volume evenly and improving supply chain efficiency. > When you're not running sales, it tends to spread your overall sales volume out quite evenly ## E-commerce powers profitability More than two-thirds of sales come from e-commerce, which is more profitable than stores. The company is using AI to boost conversion rates even further. ## AI assistant triples purchase rates Williams-Sonoma launched an AI sales assistant called Olive in November. Customers who engage with it make purchases at three times the rate of those who don't. > customers who engage with it make purchases at three times the rate of customers who don't ## B2B business emerging as growth engine Business-to-business sales grew nearly 15% in the most recent quarter, expanding into cruise ships, senior living, and student housing. The company believes B2B could double from its current $1 billion in annual sales. ## Pottery Barn turnaround underway Pottery Barn, the company's largest brand, saw revenue fall over 15% from 2022 to 2025 but posted same-store sales growth of 5.1% in the most recent quarter, signaling a recovery. ## Tariffs remain a major risk Over 80% of Williams-Sonoma's merchandise comes from foreign manufacturers, making tariff policy a significant threat to future profitability and margins. ## CEO seeks tariff stability CEO Laura Alber said the company received a $200 million tariff refund after the Supreme Court ruled Trump lacked authority to impose the tariffs, but she wants policy to stabilize. > I really am looking forward to the tariff stabilizing. If they just stay in one place, it's going to be a lot easier for everybody ## Key takeaway Williams-Sonoma proved it can stay profitable even when sales fall, which is why investors are backing it over competitors.