Exhibit 99.1

FOR IMMEDIATE RELEASE

Williams-Sonoma, Inc. Announces Fourth Quarter and Fiscal Year 2009 Results and

Provides Financial Guidance for Fiscal Year 2010

Fourth Quarter Revenues Increase 8.1%, Driving Non-GAAP Diluted EPS Up to $0.86

San Francisco, CA, March 22, 2010 — Williams-Sonoma, Inc. (NYSE: WSM) today announced operating results for the fourth quarter (“Q4 09”) and fiscal year ended January 31, 2010 (“FY 09”), as compared to the fourth quarter (“Q4 08”) and fiscal year ended February 1, 2009 (“FY 08”), and financial guidance for fiscal year 2010 (“FY 10”).

Q4 09 RESULTS

Net revenues in Q4 09 increased 8.1% to $1.090 billion versus $1.008 billion in Q4 08, including a comparable store sales increase of 7.6%.

Diluted earnings per share (“EPS”) in Q4 09 on a GAAP and non-GAAP basis are reconciled in the table below:

Reconciliation of GAAP to Non-GAAP Diluted EPS

(See Exhibit 1 for Notes)

* Due to rounding to the nearest cent per diluted share, totals may not equal the sum of the line items in the table above.

Howard Lester, Chairman and Chief Executive Officer, commented, “While our fourth quarter results were substantially better than we expected given the continuing fragility of the economy, in 2010 we will continue to garner the benefits of the strategic and tactical initiatives that drove our success in the fourth quarter. It is gratifying to look back at these initiatives and see the amount of change we were able to execute in such a short period of time. It is, in fact, these initiatives that are allowing us to emerge today as a stronger company. On revenue growth of 8% or $82 million in the fourth quarter, we generated $61 million in incremental non-GAAP net income. Our fourth quarter non-GAAP diluted earnings per share grew from $0.31 to $0.86 and we ended

the year with over $500 million in cash and virtually no debt.”

Mr. Lester continued, “As I think about our successes in the past year…as well as over the past 30 years…I am struck by the realization of what it takes to be your best. Even in good times, being your best is difficult, but in challenging times it is a strenuous test, but one that our organization was prepared to pass. During the most severe recession in recent history, we delivered the highest operating contribution in the history of our direct-to-customer segment, reduced our non-GAAP SG&A expense rate to an all time low, strategically reduced inventory while gaining market share, and generated more cash in one year than ever before. I cannot reflect on this level of achievement without being extremely proud of what has been accomplished, nor more confident in our future as this new management team officially begins to take the reins.”

Mr. Lester concluded, “As we look forward to 2010, we are remaining focused on the five key initiatives that have driven our momentum over the past year: (1) capturing market share through innovative merchandising and a greater emphasis on the ‘value’ proposition; (2) delivering superior customer service; (3) executing our Internet marketing initiatives; (4) driving efficiencies in our worldwide supply chain – particularly in furniture sourcing; and (5) maximizing profitability and cash flow through aggressive asset management and rationalization of our real estate portfolio in a reset economy. We believe all of these initiatives will improve our competitive positioning and allow us to take the business to the next level, despite our belief that the economic recovery will be slow and gradual. As such, we are projecting net revenues in 2010 to increase in the range of 3% to 6% and non-GAAP diluted EPS to increase in the range of 22% to 33%.”

Retail net revenues in Q4 09 increased 7.9% to $692 million versus $641 million in Q4 08. This increase was driven by a 7.6% growth in comparable store sales, partially offset by a 1.1% year-over-year reduction in retail leased square footage (“LSF”), including 17 net fewer stores. Increased net revenues during the quarter were driven by the Pottery Barn, Williams-Sonoma, and Pottery Barn Kids brands. Fourth quarter year-over-year comparable store sales by retail concept are shown in the table below.

Fourth Quarter Comparable Store* Sales Change by Retail Concept

*See the company’s 10-K and 10-Q public filings for the definition of comparable stores.

Direct-to-customer net revenues in Q4 09 increased 8.4% to $398 million versus $367 million in Q4 08, led by the Pottery Barn, PBteen, Pottery Barn Kids and Williams-Sonoma brands. Internet net revenues in Q4 09 increased 14.9% to $309 million versus $269 million in Q4 08.

Gross margin expressed as a percentage of net revenues in Q4 09 was 41.4% versus 33.7% of net revenues in Q4 08. Excluding the 10 basis point impact related to unusual business events in Q4 09 and the 20 basis point impact in Q4 08 (see Notes 3 and 10 in Exhibit 1), non-GAAP gross margin expressed as a percentage of net revenues in Q4 09 was 41.5% versus 33.9% in Q4 08. This 760 basis point improvement was primarily driven by reduced markdown activity, the leverage of fixed occupancy expenses primarily due to increasing net revenues, a decrease in inventory shrinkage, and reduced replacement and damages expense.

Selling, general and administrative (“SG&A”) expenses in Q4 09 were $310 million or 28.5% of net revenues versus $320 million or 31.8% of net revenues in Q4 08. Excluding the 60 basis point impact related to unusual business events in Q4 09 and the 300 basis point impact in Q4 08 (see Notes 3, 5, 7 and 10 in Exhibit 1), non-GAAP SG&A expenses were 27.9% of net revenues in Q4 09 versus 28.8% in Q4 08. This 90 basis point decrease was primarily driven by reduced advertising and other general expenses and the leverage from increasing revenues, partially offset by increased incentive compensation expense.

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FY 09 RESULTS

Net revenues in FY 09 decreased 7.7% to $3.103 billion versus $3.361 billion in FY 08, including a comparable store sales decrease of 5.1%.

Diluted EPS in FY 09 on a GAAP and non-GAAP basis are reconciled in the table below:

Reconciliation of GAAP to Non-GAAP Diluted EPS

(See Exhibit 1 for Notes)

*Due to rounding to the nearest cent per diluted share, totals may not equal the sum of the line items in the table above.

Retail net revenues in FY 09 decreased 4.3% to $1.878 billion versus $1.962 billion in FY 08. This decrease was driven by a 5.1% decrease in comparable store sales and 1.1% year-over-year decrease in retail leased square footage, including 17 net fewer stores. Net revenue decreases were primarily driven by the Pottery Barn and Pottery Barn Kids brands. Fiscal year-over-year comparable store sales by retail concept are shown in the table below.

Fiscal Year Comparable Store* Sales Change by Retail Concept

*See the company’s 10-K and 10-Q public filings for the definition of comparable stores.

Direct-to-customer net revenues in FY 09 decreased 12.5% to $1.225 billion versus $1.399 billion in FY 08. All brands had declining net revenues during the year, led primarily by the Pottery Barn and Pottery Barn Kids brands. Internet net revenues in FY 09 decreased 8.7% to $943 million versus $1.033 billion in FY 08.

Gross margin expressed as a percentage of net revenues in FY 09 was 35.6% versus 33.8% of net revenues in FY 08. Excluding the 10 basis point impact of unusual business events in FY 09 and FY 08 (see Notes 3, 4, and 10 in Exhibit 1), non-GAAP gross margin expressed as a percentage of net revenues was 35.7% in FY 09 and 33.9% in FY 08. This 180 basis point increase was primarily driven by reduced markdown activity, favorable inventory shrinkage results and a decrease in replacement and damages expense, partially offset by the deleverage of fixed occupancy expenses resulting from declining net revenues.

SG&A expenses in FY 09 were $982 million or 31.6% of net revenues versus $1.093 billion or 32.5% of net revenues in FY 08. Excluding the 110 basis point net impact related to unusual business events in FY 09 and the 20 basis

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points net impact in FY 08 (see Notes 3 through 10 in Exhibit 1), non-GAAP SG&A expenses were 30.5% of net revenues in FY 09 versus 32.3% in FY 08. This 180 basis point decrease was primarily driven by the year-over-year effect of our infrastructure cost reduction program implemented in January 2009, advertising expense reductions associated with our catalog circulation optimization strategy and managing other variable expenses in line with our current level of net revenues, partially offset by increased incentive compensation expense.

The effective income tax rate in FY 09 was 35.6% versus 28.4% in FY 08. This increase was primarily driven by certain favorable income tax resolutions during FY 08 that did not recur in FY 09.

CASH DIVIDEND INCREASED BY 8.3%

As announced in a separate press release this morning, our Board of Directors has increased our quarterly cash dividend by 8.3% from $0.12 per common share to $0.13 per common share. The aggregate quarterly dividend is estimated at approximately $14 million based upon the current number of common shares outstanding. The indicated annual cash dividend, subject to capital availability, is $0.52 per common share, or approximately $56 million, in FY 10 based on the current number of common shares outstanding.

Howard Lester, Chairman and Chief Executive Officer, commented, “We are pleased to announce today that we are increasing our quarterly dividend by 8.3% to $0.13. This action demonstrates our continuing confidence in our ability to generate cash flows in excess of funding requirements and our commitment to return capital to our shareholders, even in the current economic environment.”

FY 10 FINANCIAL GUIDANCE

Net Revenue Guidance by Quarter (all amounts in millions, except percentages)

*See the company’s 10-K and 10-Q public filings for the definition of comparable stores.

Store Opening and Closing Guidance by Retail Concept

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Gross Margin as a Percentage of Net Revenues for Q1, Q2 and Fiscal Year

SG&A Expenses as a Percentage of Net Revenues for Q1, Q2 and Fiscal Year

Interest <Income>/Expense (in millions) for Q1, Q2 and Fiscal Year

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Working Capital and Cash Flow Drivers (in millions) for Q1, Q2 and Fiscal Year

CONFERENCE CALL AND WEBCAST INFORMATION

Williams-Sonoma, Inc. will host a live conference call today, March 22, 2010, at 7:00 A.M. (PT). The call, hosted by Howard Lester, Chairman and Chief Executive Officer, will be open to the general public via a live webcast and can be accessed through the Internet at www.williams-sonomainc.com/webcast. A replay of the webcast will be available at www.williams-sonomainc.com/webcast.

SEC REGULATION G — NON-GAAP INFORMATION

This press release includes non-GAAP gross margin percentages, non-GAAP SG&A percentages and non-GAAP diluted EPS. These non-GAAP financial measures exclude: the benefit of the VISA/MasterCard litigation settlement; the impact of exiting excess distribution capacity; the impacts and benefits of the early lease termination payment; the gain on our sale of a corporate aircraft; the reversal of performance-based stock compensation expense; and the impacts of asset impairment and early lease termination charges for underperforming retail stores and severance and lease termination costs associated with our FY 08 infrastructure cost reduction program. We have reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures in the text of this release and in Exhibit 1. We believe that these non-GAAP financial measures provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of our quarterly and FY 09 diluted earnings per share actual results and guidance on a comparable basis with our quarterly and FY 08 results. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. These non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include statements relating to our future financial guidance and results, continuing to garner the benefits of the initiatives that drove our success in the fourth quarter, the impact of our key initiatives for FY 10, the variability of our tax rates, our ability to generate cash flows in excess of funding requirements, and future cash dividends.

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The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include accounting adjustments as we close our books for Q4 09 and as audited year-end financial statements are prepared; recent changes in general economic conditions, and the impact on consumer confidence and consumer spending; new interpretations of or changes to current accounting rules; our ability to anticipate consumer preferences and buying trends; dependence on timely introduction and customer acceptance of our merchandise; delays in store openings; competition from companies with concepts or products similar to ours; timely and effective sourcing of merchandise from our foreign and domestic vendors and delivery of merchandise through our supply chain to our stores and customers; effective inventory management; our ability to manage customer returns; successful catalog management, including timing, sizing and merchandising; uncertainties in Internet marketing, infrastructure and regulation; changes in consumer spending based on weather, political, competitive and other conditions beyond our control; delays on infrastructure projects based on weather or other events; multi-channel and multi-brand complexities; our ability to introduce new brands and brand extensions; dependence on external funding sources for operating capital; disruptions in the financial markets; our ability to control employment, occupancy and other operating costs; our ability to improve our systems and processes; changes to our information technology infrastructure; general political, economic and market conditions and events, including war, conflict or acts of terrorism; and other risks and uncertainties described more fully in our public announcements, reports to shareholders and other documents filed with or furnished to the SEC, including our Annual Report on Form 10-K for the fiscal year ended February 1, 2009 and all subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.

ABOUT WILLIAMS-SONOMA

Williams-Sonoma, Inc. is a nationwide specialty retailer of high quality products for the home. These products, representing six distinct merchandise strategies – Williams-Sonoma, Pottery Barn, Pottery Barn Kids, PBteen, West Elm and Williams-Sonoma Home – are marketed through 610 stores, seven direct mail catalogs and six e-commerce websites.

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WILLIAMS-SONOMA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(DOLLARS IN THOUSANDS)

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WILLIAMS-SONOMA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

THIRTEEN WEEKS ENDED JANUARY 31, 2010 AND FEBRUARY 1, 2009

(DOLLARS AND SHARES IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

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WILLIAMS-SONOMA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

FIFTY-TWO WEEKS ENDED JANUARY 31, 2010 AND FEBRUARY 1, 2009

(DOLLARS AND SHARES IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

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WILLIAMS-SONOMA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FIFTY-TWO WEEKS ENDED JANUARY 31, 2009 AND FEBRUARY 1, 2009

(DOLLARS IN THOUSANDS)

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Exhibit 1

Reconciliation of FY 10 Guidance and FY 09 and FY 08 Actual GAAP to Non-GAAP

Diluted Earnings/<Loss> Per Share*

(Totals Rounded to the Nearest Cent Per Diluted Share)

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* Due to rounding to the nearest cent per diluted share, totals may not equal the sum of the line items in the table above.

** Quarterly diluted EPS guidance amounts will vary within the ranges above. Therefore, the respective high and low guidance estimates for the quarters should not be added together to derive an estimate for the fiscal year. Additionally, due to quarterly rounding to the nearest cent per diluted share, the sum of the quarters at the end of any quarter may not equal the year-to-date total.

*** Due to the differences between quarterly share counts and the year-to-date weighted average share count calculations and the effect of quarterly rounding to the nearest cent per diluted share, the year-to-date calculation of GAAP and non-GAAP diluted earnings per share in FY 09 is approximately $0.02 more than the sum of the diluted earnings per share by quarter.

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