revenue growth
4–6.5 pct
FY 2026
official guidance
WILLIAMS-SONOMA, INC.
Last · —$242.63+2.73 (+1.14%)live · yahoo · 16m ago
Market cap$29.09B—
P/E · TTM25.1fwd — · eps —
Beta—vs S&P 500
Div yield—annual · TTM
52w range
——
Volume—session
| Revenue | $8.0B |
|---|---|
| Operating income | $740.5M |
| Net income | $569.5M |
| Free cash flow | $579.4M |
| Operating margin | 9.3% |
| Net margin | 7.1% |
| Return on equity | 26.6% |
| Period | TTM 2026-08-02 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Broad-based share gains and disciplined costs outweigh tariff and holiday uncertainty.
Buy: Williams-Sonoma delivered a high-quality Q2, with 6.2% comparable-brand revenue growth, 6.7% total revenue growth, 17.3% non-GAAP operating margin, and $2.10 adjusted EPS despite peak tariff pressure. The raised FY26 outlook is encouraging, but the underlying gross margin fell 160 bps to 45.5%, and the second-half sales outlook implicitly requires some deceleration while holiday and fuel costs remain risks.
Themes
- Market Share Gains
- Tariffs
- Gross Margin
- Pottery Barn Recovery
- B2b Growth
- Ai Personalization
Near term
The FY26 comp guidance midpoint now assumes continued momentum, while the high end requires further acceleration and a strong holiday; analysts pressed management but received no quarterly cadence detail.
Tariff pressure should moderate after Q2, but higher fuel costs are embedded in guidance and Q4 faces a roughly 150-basis-point comparison from last year’s shrink benefit.
Pottery Barn’s recovery, continued Williams Sonoma and West Elm strength, and B2B growth of 14.5% are the key execution tests for the next two quarters.
The $29 million deferred tariff benefit is expected to support reported gross margin in Q3, but is excluded from non-GAAP guidance and is not recurring.
Longer term
The company is gaining share in a flat home-furnishings market while increasing full-price penetration, suggesting product, brand, and channel execution are currently differentiating Williams-Sonoma from peers.
B2B is scaling across contract and trade, with contract up 20% and representing 36% of B2B revenue; management sees a path to $2 billion but provided no timeline.
Emerging brands including Rejuvenation, Mark & Graham, and GreenRow are growing double digit, while Rejuvenation is viewed as a potential $1 billion business.
AI-enabled discovery could improve conversion, service productivity, and inventory accuracy; however, the long-term moat depends on whether these tools create durable advantages rather than merely improve digital merchandising.
Store growth is expected to resume at 1% to 3% annually from FY27, providing an incremental growth lever after a flat FY26 store base.
Red flags
Underlying merchandise margin declined approximately 230 bps as tariffs raised weighted-average product costs; future relief depends partly on lapping prior-year tariffs rather than structural cost removal.
Management’s raised outlook excludes tariff-refund income, but Q2 GAAP results benefited from approximately $117 million of net pretax refund-related gains, creating headline-quality and comparability risk.
Management repeatedly declined to provide quarterly sales cadence, a B2B $2 billion timeline, or FY27 margin specifics, leaving the degree of second-half deceleration and normalized profitability unresolved.
AI metrics are impressive but early and largely operationally unquantified: Oliver engagement rose 700% and revenue 620%, while Otto has resolved over 70% of engagements without a human representative; no incremental profit contribution was provided.
Higher oil prices, geopolitical volatility, interest rates, and a stagnant housing market remain external risks, even though guidance assumes no material macro deterioration.
Forward outlook
revenue growth
4.7–7.2 pct
FY 2026
official guidance
operating margin
17.8–18.2 pct
FY 2026
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
1:30 PM UTC+1
Period
Oct 2026
Est. EPS
$2.18
Est. revenue
2.0B