Shares of Williams-Sonoma (NYSE: WSM) plunged 6.15% in pre-market trading on Thursday following the release of its first-quarter 2025 financial results. Despite beating revenue expectations, the home goods retailer's earnings miss and concerns about future growth prospects triggered a significant sell-off.

Williams-Sonoma reported Q1 revenue of $1.73 billion, surpassing the IBES estimate of $1.67 billion. However, the company's adjusted earnings per share (EPS) of $1.56 fell short of the expected $1.76, disappointing investors. The comparable brand revenue increased by 3.4% year-over-year, showing some positive momentum in sales growth.

While Williams-Sonoma reiterated its full-year outlook and provided long-term guidance, investors seem wary of the company's growth prospects in a challenging retail environment. The stock's sharp decline also comes amid broader market concerns, as the Dow Jones Industrial Average tumbled over 800 points the previous day due to renewed worries about fiscal policy. As Williams-Sonoma navigates these headwinds, investors will be closely watching for signs of improved profitability and sustainable growth in the coming quarters.