Is WSM (Williams-Sonoma, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, WSM is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (6.53% vs ≤33% threshold), interest income ratio (0.47% vs ≤5% threshold), and cash & securities ratio (4.57% vs ≤33% threshold).

Williams-Sonoma, Inc. is a premier omni-channel retailer specializing in high-quality home goods. The company operates well-known lifestyle brands including Pottery Barn, West Elm, and its namesake Williams Sonoma, offering everything from premium cookware to stylish furniture and home decor. For Muslim investors, WSM represents a solid Halal investment opportunity within the consumer cyclical sector. The stock successfully passes all four AAOIFI screening criteria, meaning its core business of selling home furnishings is fully permissible and its financial structure aligns with Islamic principles. From an Islamic finance perspective, Williams-Sonoma boasts an exceptionally clean balance sheet. Its debt-to-market cap ratio of 6.5% and cash-to-market cap ratio of 4.6% easily clear the strict 33% thresholds, while interest-bearing income remains firmly under the 5% limit at just 0.47%. Since the core retail business is universally accepted as halal, there is no significant scholarly debate surrounding WSM. However, halal investors should continue to monitor its quarterly earnings to ensure debt levels and interest income remain safely below AAOIFI limits. Williams-Sonoma, Inc. operates in the Consumer Cyclical sector under the Specialty Retail industry and is headquartered in San Francisco, CA, US. The company is led by CEO Laura J. Alber and employs approximately 19,600 people.

WSM was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. WSM passed 4 of these 4 screens.

Although WSM passes all shariah screens, it does earn $36.8M in interest income (0.47% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.47 to purify the income.

WSM was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.