7 Best High Short Interest Stocks To Invest In

3. Williams-Sonoma Inc. (NYSE:WSM)

Short % of Float As of September 13: 16.88%

Market Capitalization as of September 30: $19.5 billion

Number of Hedge Fund Holders: 39

Williams-Sonoma Inc. (NYSE:WSM) is a consumer retail company that sells kitchenware and home furnishings and operates a portfolio of well-known brands, including Williams Sonoma, Pottery Barn, West Elm, and Rejuvenation. It’s known for its curated selection of products, expert customer service, and commitment to quality.

The company has embraced augmented reality technology to enhance its online shopping experience. Its new Design Crew Room Planner allows customers to virtually place furniture in their own spaces.

Management reported a slowdown in sales due to a slower housing market, which is negatively impacting demand for home products. Overall, the revenue for FQ2 2025 was down 3.99% year-over-year.

Pottery Barn’s sales declined by 7.1%, but there were positive trends in coastal decorating, entertaining, and seasonal holiday products. The Pottery Barn Children’s Business improved by 1.5%. West Elm again declined by 4.8%, while the Williams-Sonoma brand was down 0.8%.

The B2B business continues to expand, with strong growth in contracts (21.6%) and trade (7.1%). The company secured notable wins in the hospitality sector, including Sheraton Boston, Hilton Beverly Hills, and Renaissance Las Vegas. It launched a new partnership with IHG’s Hotel Indigo brand and is growing its presence in the multifamily space with partnerships like Korman Communities and Discovery Land Company.

Despite a decline in comparable sales, the company exceeded profitability expectations in the second fiscal quarter. The operating margin reached 16.2%, and earnings per share were $1.74, reflecting the recent 2-for-1 stock split.

The company’s strategic focus on innovation, customer experience, and margin improvement has positioned it for continued success. Management is confident in its ability to navigate the market and deliver sustainable growth, driven by Williams-Sonoma Inc.’s (NYSE:WSM) strong foundation and commitment to excellence.

ClearBridge Sustainability Leaders Strategy made the following comment about Williams-Sonoma, Inc. (NYSE:WSM) in its Q3 2023 investor letter:

“In a strong showing for the Strategy’s consumer discretionary holdings, Williams-Sonoma, Inc. (NYSE:WSM), which sells kitchenware and home furnishings, was the top contributor in the quarter after its August earnings report showed exceptional profitability and the company raised its full-year guidance. Shares jumped further in September after a private equity firm increased its stake, suggesting recent weakness was overdone. The company’s high-quality fundamentals make it a good defensive fit for an uncertain environment: it generates significant free cash flows, has no debt and the liquidity to invest in the business first and then return excess to shareholders.”