Williams-Sonoma (NYSE:WSM) delivered stronger-than-expected fourth-quarter results, but shares fell over 6% intra-day today, as investors reacted to broader concerns beyond the earnings beat.

For the quarter, the home furnishings retailer posted earnings per share of $3.28, surpassing analyst expectations of $2.91 by $0.37. Revenue climbed to $2.46 billion, also exceeding forecasts of $2.35 billion.

Profitability remained a key highlight, with an operating margin of 21.5%, supported by robust retail and online furniture sales, successful seasonal offerings, and key collaborations.

Despite the strong quarter, Williams-Sonoma’s full-year performance reflected some softness in demand, with comparable sales declining 1.6%. However, the company maintained record profitability, achieving an annual operating margin of 17.9% and earnings per share of $8.50.

While fundamentals remain solid, the market’s negative reaction suggests investor caution, possibly due to concerns over macro headwinds, future demand trends, or the sustainability of elevated margins.