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SAN FRANCISCO--(BUSINESS WIRE)--Williams-Sonoma, Inc. (NYSE: WSM), the world’s largest digital-first, design-led and sustainable home retailer, announced today that Lynn Martin has been appointed to the company’s Board of Directors. As current President of NYSE Group, a wholly owned subsidiary of Intercontinental Exchange, Inc. (NYSE: ICE), Martin leads the New York Stock Exchange, the world’s most iconic stock market and premier venue for capital raising. Martin also oversees NYSE’s equities and options exchanges and serves as Chair of ICE Fixed Income & Data Services. Throughout her career, Martin has held senior leadership roles across data, technology, and global financial markets, establishing extensive expertise in innovation, risk management, corporate governance, and highly regulated industries.

“Lynn is an exceptional leader who has built her career at the forefront of technology, data, and the capital markets,” said Laura Alber, President and Chief Executive Officer of Williams-Sonoma, Inc. “Her experience guiding complex, high-performing organizations will be invaluable as we continue to execute our growth strategies and create long-term value for our shareholders.”

Scott Dahnke, Williams-Sonoma, Inc.’s Board Chair, added “Lynn’s experience leading the New York Stock Exchange and understanding of public companies will bring an important perspective to our Board as we continue to support the company’s long-term growth. We look forward to the insight and experience she will bring to Williams-Sonoma, Inc.”

“Williams-Sonoma, Inc. has built one of the most admired portfolios of brands in retail and has set the standard in digital innovation, design, and customer engagement,” said Martin. “I’m proud to join the Board and look forward to working with Laura, the leadership team, and my fellow directors to drive its continued growth and long-term success.”

Prior to her current role, Martin served as President of Fixed Income & Data Services at ICE and President of ICE Data Services. She has also held leadership positions including Chief Operating Officer of ICE Clear U.S., Chief Executive Officer of NYSE Liffe U.S., and Chief Executive Officer of New York Portfolio Clearing. Martin began her career at IBM in its Global Services organization.

ABOUT WILLIAMS-SONOMA, INC.

Williams-Sonoma, Inc. (NYSE: WSM), a Fortune 500 and S&P 500 company, is the world’s largest digital-first, design-led and sustainable home retailer. The company’s brands — Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark & Graham, GreenRow, and Dormify — represent distinct merchandise strategies that are marketed through e-commerce, direct-mail catalogs, retail stores, and business-to-business. These brands collectively support The Key Rewards, the company's loyalty and credit card program that offers members exclusive benefits. The company operates in the U.S., Puerto Rico, Canada, Australia, and the United Kingdom, and has unaffiliated franchisees that operate stores in Mexico, South Korea, India, and the Philippines.

WSM-IR

More News From Williams-Sonoma, Inc.

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Williams-Sonoma (WSM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this seller of cookware and home furnishings have returned +6.3% over the past month versus the Zacks S&P 500 composite's +1.4% change. The Zacks Retail - Home Furnishings industry, to which Williams-Sonoma belongs, has lost 9.8% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Williams-Sonoma is expected to post earnings of $2.16 per share, indicating a change of +10.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.5% over the last 30 days.

The consensus earnings estimate of $9.51 for the current fiscal year indicates a year-over-year change of +7.6%. This estimate has changed +0.3% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $10.49 indicates a change of +10.3% from what Williams-Sonoma is expected to report a year ago. Over the past month, the estimate has changed +0.5%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Williams-Sonoma.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Williams-Sonoma, the consensus sales estimate for the current quarter of $1.98 billion indicates a year-over-year change of +5.4%. For the current and next fiscal years, $8.23 billion and $8.62 billion estimates indicate +5.5% and +4.8% changes, respectively.

Last Reported Results and Surprise HistoryWilliams-Sonoma reported revenues of $1.96 billion in the last reported quarter, representing a year-over-year change of +6.7%. EPS of $2.1 for the same period compares with $2 a year ago.

Compared to the Zacks Consensus Estimate of $1.91 billion, the reported revenues represent a surprise of +2.45%. The EPS surprise was +2.44%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Williams-Sonoma is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Williams-Sonoma. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

A month has gone by since the last earnings report for Williams-Sonoma (WSM - Free Report) . Shares have lost about 4.1% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Williams-Sonoma due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Williams-Sonoma Q2 Earnings and Revenue BeatWilliams-Sonoma posted second-quarter fiscal 2026 adjusted earnings of $2.10 per share, up 5% year over year and above the Zacks Consensus Estimate of $2.05 by 2.4%. Net revenues rose 6.7% to $1.96 billion and beat the consensus mark of $1.91 billion by 2.5%.

Comparable brand revenues increased 6.2%, with every major brand posting positive growth. Broad-based brand gains and supply-chain efficiencies supported the quarter, while tariff costs weighed on merchandise margins.

However, WSM shares lost about 5% following the earnings release, likely reflecting investor concerns about profitability. Non-GAAP gross margin and operating margin contracted year over year, as lower merchandise margins, primarily due to tariff-related costs, pressured results. Investor sentiment may also have been tempered by the company’s outlook, which assumes that current tariffs will remain in place and oil prices will stay elevated for the remainder of fiscal 2026, potentially sustaining cost pressures.

WSM's Brand Gains Support Revenue GrowthPottery Barn remained the largest revenue contributor, generating $770.8 million in the quarter. Comparable brand revenues for Pottery Barn increased 5.1% from the year-ago period compared with 1.1% growth in the prior-year quarter.

West Elm delivered $496.3 million of revenues, with comps up 6.4% compared with 3.3% a year ago. Williams Sonoma, including Williams Sonoma Home, generated $268.8 million and posted 7.6% comparable growth compared with 5.1%. Pottery Barn Kids and Teen recorded $297.4 million in revenues, while comps rose 3.5%. The Other category contributed $126.4 million.

Williams-Sonoma Sees Adjusted Margin PressureNon-GAAP gross profit totaled $891.6 million, with gross margin of 45.5%, down 160 basis points (bps) year over year. Lower merchandise margins reduced the rate by 230 bps, primarily because of tariff costs. Supply-chain efficiencies contributed 30 basis points of benefit, while occupancy leverage added 40 bps. Non-GAAP selling, general and administrative expenses were $553.2 million, up 3.1% year over year. The SG&A rate fell 100 bps to 28.2%, helped by 120 basis points of leverage in employment expense. Higher general and advertising expenses added 10 bps each.

WSM's Profitability Reflects Tariff AdjustmentsNon-GAAP operating income was $338.5 million, up from $328.06 million a year ago. The adjusted operating margin was 17.3%, down 60 bps from 17.9% in the prior-year quarter as gross-margin pressure offset expense leverage.

On a GAAP basis, operating income was $448.8 million and operating margin reached 22.9%. During the quarter, WSM recognized $167.8 million of tariff refund income as a reduction to cost of goods sold, partly offset by $47.5 million of vendor concessions and a $10 million employee recognition cost. The company excluded these items from non-GAAP results. It also excluded $6.3 million of interest income tied to the tariff refund.

Williams-Sonoma Strengthens Cash GenerationCash and cash equivalents were $1.03 billion at Aug. 2, 2026, compared with $985.8 million a year earlier. Merchandise inventories were $1.45 billion, up 1% year over year, net of $29.3 million of deferred tariff refund income recorded as a reduction of inventory. The deferred amount is expected to be recognized as a reduction to cost of goods sold in the fiscal third quarter.

For the first 26 weeks of fiscal 2026, net cash provided by operating activities totaled $695.9 million, up from $401.7 million in the year-ago period. WSM repurchased $287.8 million of common stock and paid $175.4 million in dividends over the same period. Purchases of property and equipment were $116.4 million.

WSM Raises Fiscal 2026 OutlookWilliams-Sonoma raised its fiscal 2026 guidance after strong year-to-date performance. The company now expects annual net revenues to increase 4.7% to 7.2%, with comparable brand revenue growth of 4% to 6.5%. Non-GAAP operating margin is projected to be between 17.8% and 18.2%. The outlook assumes currently imposed tariffs remain in place for fiscal 2026, including Section 232 tariffs and existing and newly announced Section 301 tariffs. It also assumes oil prices stay elevated for the rest of the year and no benefit from tariff refunds or related interest.

WSM expects annual interest income of approximately $25 million and an effective tax rate of approximately 26% on a non-GAAP basis. Its long-term targets remain mid-to-high single-digit annual net revenue growth and an operating margin in the mid-to-high teens.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.

VGM ScoresAt this time, Williams-Sonoma has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Williams-Sonoma has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Williams-Sonoma, Inc. (NYSE: WSM) announced today that its Board of Directors has declared a quarterly cash dividend of $0.76 per share of common stock. Each stockholder of record as of the close of business on October 16, 2026 will be paid the cash dividend on November 20, 2026.

ABOUT WILLIAMS-SONOMA, INC.

Williams-Sonoma, Inc. is the world’s largest digital-first, design-led and sustainable home retailer. The company’s brands — Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham, GreenRow, and Dormify — represent distinct merchandise strategies that are marketed through e-commerce, direct-mail catalogs, retail stores, and business-to-business. These brands collectively support The Key Rewards, our loyalty and credit card program that offers members exclusive benefits. We operate in the U.S., Puerto Rico, Canada, Australia and the United Kingdom, and have unaffiliated franchisees that operate stores in Mexico, South Korea, India and the Philippines.

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Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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Q2 comparable brand revenue +6.2%
GAAP operating margin of 22.9%; non-GAAP operating margin of 17.3%
GAAP diluted EPS of $2.84; non-GAAP diluted EPS of $2.10
Raises full-year 2026 outlook

SAN FRANCISCO--(BUSINESS WIRE)--Williams-Sonoma, Inc. (NYSE: WSM) today announced operating results for the second quarter ended August 2, 2026 versus the second quarter ended August 3, 2025.

“We delivered a very strong second quarter. In Q2, our comp came in at 6.2%, with total revenue growth of 6.7%, and we drove an operating margin of 17.3% with earnings per share of $2.10. Every brand delivered again in the quarter, driven by strong execution across our brands, our channels, and our team,” said Laura Alber, President and Chief Executive Officer.

Alber concluded, “Our strategies continue to gain momentum, and our results reflect the power of our execution. We gained market share, continued to outperform the industry, and raised our annual outlook on both the top and bottom lines. We are delivering compounding results despite the housing market and other macroeconomic events, and we remain confident in our priorities and plans for the remainder of 2026 and beyond.”

SECOND QUARTER 2026 HIGHLIGHTS

Comparable brand revenue +6.2%. Gross margin of 51.6% on a GAAP basis, +450bps to LY driven by (i) IEEPA tariff refunds, net of tariff-related vendor concessions, of +610bps, (ii) occupancy leverage of +40bps, and (iii) supply chain efficiencies of +30bps, partially offset by (iv) lower merchandise margins of -230bps primarily driven by tariff costs. Occupancy costs of $208 million, +3.3% to LY. Gross margin of 45.5% on a non-GAAP basis, -160bps to LY driven by (i) lower merchandise margins of -230bps primarily driven by tariff costs, partially offset by (ii) supply chain efficiencies of +30bps, and (iii) occupancy leverage of +40bps. Occupancy costs of $208 million, +3.3% to LY. SG&A rate of 28.7% on a GAAP basis, -50bps to LY driven by (i) employment expense leverage, net of a one-time tariff-related employee recognition cost in the form of a discretionary 401(k) contribution, of -70bps, partially offset by (ii) higher general expenses of +10bps, and (iii) higher advertising expenses of +10bps. SG&A of $563 million, +5.0% to LY on a GAAP basis. SG&A rate of 28.2% on a non-GAAP basis, -100bps to LY driven by (i) employment expense leverage of -120bps, partially offset by (ii) higher general expenses of +10bps, and (iii) higher advertising expenses of +10bps. SG&A of $553 million, +3.1% to LY on a non-GAAP basis. Operating income of $449 million with an operating margin of 22.9% on a GAAP basis; or $338 million with an operating margin of 17.3% on a non-GAAP basis. +500bps to LY on a GAAP basis and -60bps to LY on a non-GAAP basis. GAAP diluted EPS of $2.84 per share, or $2.10 on a non-GAAP basis. +42.0% to LY on a GAAP basis and +5.0% to LY on a non-GAAP basis. Merchandise inventories +1.0% to the second quarter LY to $1.45 billion, net of $29.3 million of deferred tariff refund income recorded as a reduction of inventory. Maintained strong liquidity position of $1.0 billion in cash and $696 million in operating cash flow, inclusive of the collection of $200.2 million of tariff refunds and the related interest, enabling the company to deliver returns to stockholders of $90 million through dividends. TARIFF REFUND

During the second quarter of fiscal 2026, we recognized income from the refund of previously paid International Emergency Economic Powers Act (“IEEPA”) tariffs. During the quarter, we recorded (i) a reduction of cost of goods sold of $167.8 million related to refunds received for tariffs that have been previously expensed and (ii) related interest income of $6.3 million. This income was partially offset by (i) a provision of $47.5 million to reimburse certain merchandise vendors that previously provided tariff-related concessions and (ii) a one-time tariff-related employee recognition cost of $10.0 million, in the form of a discretionary 401(k) contribution to all eligible employees. As of August 2, 2026, we deferred $29.3 million of the tariff refund income as a reduction of merchandise inventories, which we anticipate recognizing as a reduction to cost of goods sold in the third quarter of fiscal 2026. Substantially all of our initial refund claim of $197.8 million has been collected as of August 2, 2026, with a remaining tariff refund receivable of $3.2 million. We have adjusted all of these tariff-related items as non-GAAP adjustments. See Exhibit 1 for our GAAP to non-GAAP reconciliation.

OUTLOOK

We are raising our fiscal 2026 guidance to reflect our year-to-date strong performance. In fiscal 2026, we now expect annual net revenues in the range of +4.7% to +7.2%, with comps in the range of +4.0% to +6.5%; and an operating margin, on a non-GAAP basis, between 17.8% to 18.2%. Our guidance assumes (i) all tariffs currently in place will remain for fiscal 2026, including the Section 232 tariffs, the existing Section 301 tariffs, the new Section 301 tariffs announced on July 23rd, and the latest tariffs between Canada and the United States, (ii) oil prices will remain elevated for the remainder of the year, and (iii) no benefit from tariff refunds or related interest. For fiscal 2026, we expect annual interest income of approximately $25 million and an effective tax rate of approximately 26%, both on a non-GAAP basis. Over the long term, we continue to expect mid-to-high single-digit annual net revenue growth with an operating margin in the mid-to-high teens. CONFERENCE CALL AND WEBCAST INFORMATION

Williams-Sonoma, Inc. will host a live conference call today, August 26, 2026, at 7:00 A.M. (PT). The call will be open to the general public via live webcast and can be accessed at http://ir.williams-sonomainc.com/events. A replay of the webcast will be available at http://ir.williams-sonomainc.com/events.

SEC REGULATION G — NON-GAAP INFORMATION

This press release and our accompanying earnings call include non-GAAP financial measures. Exhibit 1 provides reconciliations of these non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). We have not provided a reconciliation of non-GAAP measures to the most directly comparable GAAP measures on a forward-looking basis as we cannot do so without unreasonable efforts due to the potential variability and limited visibility of excluded items; these excluded items may include exit costs, reduction-in-force initiatives, impairment, early termination charges and other non-recurring or non-operational income or expenses. For the same reasons, we are unable to address the probable significance of any such excluded items. We believe that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of current period performance on a comparable basis with prior periods. 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. In addition, certain other items may be excluded from non-GAAP financial measures when the company believes this provides greater clarity to management and investors. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for or superior to the GAAP financial measures presented in this press release and our financial statements and other publicly filed reports. Such non-GAAP measures may not be comparable to similarly titled measures used by other companies.

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 are proven incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include, among other things, statements in the quotes of our President and Chief Executive Officer, our fiscal year 2026 outlook and long-term financial targets, and statements regarding our industry trends and business strategies.

The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include: our ability to provide products that are designed and built for durability and longevity at competitive prices; changes in and the related impact of U.S. (federal, state and local) and international tax laws, trade policies and regulations; our ability to mitigate current and future tariffs; factors, including but not limited to general economic conditions, inflationary pressures, consumer disposable income, rising fuel prices, recession and fears of recession, unemployment, war and fears of war, adverse weather, availability of consumer credit, conditions in the housing market, elevated interest rates, and consumer confidence in current and future economic conditions that can affect consumer spending; the plans, strategies, initiatives and objectives of management for future operations; our ability to execute strategic priorities and growth initiatives; our beliefs about our competitive advantages and areas of potential future growth in the market; the impact of periods of decreased home purchases; our ability to anticipate consumer preferences and buying trends; factors, including but not limited to fuel costs, labor disputes, union organizing activity, geopolitical instability, and acts of terrorism and war, that can affect the global supply chain; effective inventory management; timely and effective sourcing and delivery of merchandise from our suppliers; our ability to respond to the growing use of and to adopt new technologies, including artificial intelligence; our belief in the reasonableness of the steps taken by us and our suppliers to protect the security and confidentiality of the information we collect; multi-channel and multi-brand complexities; our brands, products, retail and related initiatives, including our ability to introduce new products, product lines, brands and brand extensions, and bring in new customers; challenges associated with our global presence and expansion efforts; our ability to control employment, advertising, occupancy, and other operating costs; payment of dividends; our ability to drive long-term sustainable returns; our capital allocation strategy in fiscal 2026; our planned use of cash in fiscal 2026; projections of earnings, revenues, growth and other financial items; and other risks and uncertainties described more fully in our public announcements, reports to stockholders 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, 2026 and all subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. We have not filed our Form 10-Q for the quarter ended August 2, 2026. As a result, all financial results described here should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates that are identified prior to the time we file the Form 10-Q. 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, INC.

Williams-Sonoma, Inc. is the world’s largest digital-first, design-led and sustainable home retailer. The company’s brands — Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham, GreenRow, and Dormify — represent distinct merchandise strategies that are marketed through e-commerce, direct-mail catalogs, retail stores, and business-to-business. These brands collectively support The Key Rewards, our loyalty and credit card program that offers members exclusive benefits. We operate in the U.S., Puerto Rico, Canada, Australia and the United Kingdom, and have unaffiliated franchisees that operate stores in Mexico, South Korea, India and the Philippines.

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Condensed Consolidated Statements of Earnings (unaudited)

  For the Thirteen Weeks Ended

For the Twenty-six Weeks Ended

August 2, 2026

August 3, 2025

August 2, 2026

August 3, 2025

(In thousands, except per share amounts)

$

% of Net

revenues

$

% of Net

revenues

$

% of Net

revenues

$

% of Net

revenues

Net revenues

$

1,959,757

100.0

%

$

1,836,760

100.0

%

$

3,765,213

100.0

%

$

3,566,873

100.0

%

Cost of goods sold

947,809

48.4

972,137

52.9

1,959,839

52.1

1,936,441

54.3

Gross profit

1,011,948

51.6

864,623

47.1

1,805,374

47.9

1,630,432

45.7

Selling, general and administrative expenses

563,153

28.7

536,564

29.2

1,064,891

28.3

1,011,660

28.4

Operating income

448,795

22.9

328,059

17.9

740,483

19.7

618,772

17.3

Interest income, net

12,412

0.6

9,080

0.5

19,319

0.5

18,613

0.5

Earnings before income taxes

461,207

23.5

337,139

18.4

759,802

20.2

637,385

17.9

Income taxes

123,098

6.3

89,577

4.9

190,331

5.1

158,560

4.4

Net earnings

$

338,109

17.3

%

$

247,562

13.5

%

$

569,471

15.1

%

$

478,825

13.4

%

Earnings per share (EPS):

Basic

$

2.87

$

2.03

$

4.82

$

3.91

Diluted

$

2.84

$

2.00

$

4.77

$

3.86

Shares used in calculation of EPS:

Basic

117,765

122,121

118,075

122,614

Diluted

118,892

123,595

119,375

124,163

2nd Quarter Net Revenues and Comparable Brand Revenue Growth 1

Net revenues

Comparable brand revenue

growth

(In thousands, except percentages)

Q2 26

Q2 25

Q2 26

Q2 25

Pottery Barn

$

770,808

$

724,579

5.1

%

1.1

%

West Elm

496,251

468,550

6.4

3.3

Williams Sonoma 2

268,828

249,053

7.6

5.1

Pottery Barn Kids and Teen

297,438

286,749

3.5

5.3

Other 3

126,432

107,829

N/A

N/A

Total 4

$

1,959,757

$

1,836,760

6.2

%

3.7

%

1 See the Company’s 10-K for the definition of comparable brand revenue, which is calculated on a 13-week basis, and includes business-to-business revenues.

2 Includes Williams Sonoma Home net revenues.

3 Primarily consists of net revenues from Rejuvenation, Mark and Graham, our international franchise operations, GreenRow and Dormify.

4 Total comparable brand revenue growth includes Rejuvenation, Mark and Graham, and GreenRow.

  Condensed Consolidated Balance Sheets (unaudited)

  As of

(In thousands, except per share amounts)

August 2,
2026

February 1,
2026

August 3,
2025

Assets

Current assets

Cash and cash equivalents

$

1,028,936

$

1,019,801

$

985,823

Accounts receivable, net

146,219

126,821

115,509

Merchandise inventories, net

1,447,423

1,462,849

1,433,605

Prepaid expenses

105,583

80,053

100,622

Other current assets

18,385

23,663

19,961

Total current assets

2,746,546

2,713,187

2,655,520

Property and equipment, net

1,121,677

1,095,158

1,029,526

Operating lease right-of-use assets

1,322,644

1,270,272

1,221,792

Deferred income taxes, net

74,433

99,161

95,797

Goodwill

77,369

77,398

77,374

Other long-term assets, net

163,637

156,736

148,359

Total assets

$

5,506,306

$

5,411,912

$

5,228,368

Liabilities and stockholders' equity

Current liabilities

Accounts payable

$

703,822

$

637,985

$

601,661

Accrued expenses

207,857

314,588

202,914

Gift card and other deferred revenue

618,926

602,940

578,192

Income taxes payable

62,098

78,943

74,329

Operating lease liabilities

217,032

221,356

222,572

Other current liabilities

88,843

98,318

86,641

Total current liabilities

1,898,578

1,954,130

1,766,309

Long-term operating lease liabilities

1,310,914

1,235,549

1,171,675

Other long-term liabilities

155,900

139,674

140,688

Total liabilities

3,365,392

3,329,353

3,078,672

Stockholders' equity

Preferred stock: $0.01 par value; 7,500 shares authorized, none issued

—

—

—

Common stock: $0.01 par value; 253,125 shares authorized; 117,779, 118,770, and 121,790 shares issued and outstanding at August 2, 2026, February 1, 2026 and August 3, 2025, respectively

1,178

1,188

1,219

Additional paid-in capital

543,931

587,433

544,244

Retained earnings

1,611,605

1,509,129

1,622,191

Accumulated other comprehensive loss

(14,142

)

(13,176

)

(15,943

)

Treasury stock, at cost

(1,658

)

(2,015

)

(2,015

)

Total stockholders' equity

2,140,914

2,082,559

2,149,696

Total liabilities and stockholders' equity

$

5,506,306

$

5,411,912

$

5,228,368

Retail Store Data
(unaudited)

Beginning of quarter
May 3, 2026

End of quarter
August 2, 2026

As of
August 3, 2025

Openings

Closings

Pottery Barn

180

2

(1

)

181

181

Williams Sonoma

153

—

—

153

154

West Elm

116

1

—

117

119

Pottery Barn Kids

43

—

—

43

44

Rejuvenation

13

—

—

13

11

GreenRow

1

—

—

1

—

Total

506

3

(1

)

508

509

  Condensed Consolidated Statements of Cash Flows (unaudited)

  For the Twenty-six Weeks Ended

(In thousands)

August 2, 2026

August 3, 2025

Cash flows from operating activities:

Net earnings

$

569,471

$

478,825

Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:

Depreciation and amortization

112,683

113,165

Loss on disposal/impairment of assets

1,108

3,599

Non-cash lease expense

127,380

121,936

Deferred income taxes

12,884

14,658

Tax benefit related to stock-based awards

11,650

11,423

Stock-based compensation expense

61,530

46,974

Other

(898

)

(1,275

)

Changes in:

Accounts receivable

(19,495

)

2,411

Merchandise inventories

15,000

(98,562

)

Prepaid expenses and other assets

(27,704

)

(37,959

)

Accounts payable

49,314

(48,962

)

Accrued expenses and other liabilities

(89,166

)

(78,142

)

Gift card and other deferred revenue

16,197

(7,069

)

Operating lease liabilities

(127,247

)

(125,977

)

Income taxes payable

(16,845

)

6,633

Net cash provided by operating activities

695,862

401,678

Cash flows from investing activities:

Purchases of property and equipment

(116,434

)

(110,293

)

Other

62

(1,195

)

Net cash used in investing activities

(116,372

)

(111,488

)

Cash flows from financing activities:

Repurchases of common stock

(287,805

)

(289,108

)

Payment of dividends

(175,444

)

(155,994

)

Tax withholdings related to stock-based awards

(99,095

)

(67,903

)

Debt issuance costs

—

(1,187

)

Other

(7,658

)

(6,941

)

Net cash used in financing activities

(570,002

)

(521,133

)

Effect of exchange rates on cash and cash equivalents

(353

)

3,789

Net increase (decrease) in cash and cash equivalents

9,135

(227,154

)

Cash and cash equivalents at beginning of period

1,019,801

1,212,977

Cash and cash equivalents at end of period

$

1,028,936

$

985,823

  Exhibit 1

2nd Quarter GAAP to Non-GAAP Reconciliation
(unaudited)

For the Thirteen Weeks Ended

For the Twenty-six Weeks Ended

August 2, 2026

August 3, 2025

August 2, 2026

August 3, 2025

(In thousands, except per share data)

$

% of Net

revenues

$

% of Net

revenues

$

% of Net revenues

$

% of Net revenues

Gross profit

$

1,011,948

51.6

%

$

864,623

47.1

%

$

1,805,374

47.9

%

$

1,630,432

45.7

%

Tariff refund income1

(167,778

)

—

(167,778

)

—

Tariff refund-related vendor concessions2

47,464

—

47,464

—

Non-GAAP gross profit

$

891,634

45.5

%

$

864,623

47.1

%

$

1,685,060

44.8

%

$

1,630,432

45.7

%

Selling, general and administrative expenses

$

563,153

28.7

%

$

536,564

29.2

%

$

1,064,891

28.3

%

$

1,011,660

28.4

%

Tariff refund-related employee recognition3

(10,000

)

—

(10,000

)

—

Non-GAAP selling, general and administrative expenses

$

553,153

28.2

%

$

536,564

29.2

%

$

1,054,891

28.0

%

$

1,011,660

28.4

%

Operating income

$

448,795

22.9

%

$

328,059

17.9

%

$

740,483

19.7

%

$

618,772

17.3

%

Tariff refund income1

(167,778

)

—

(167,778

)

—

Tariff refund-related vendor concessions2

47,464

—

47,464

—

Tariff refund-related employee recognition3

10,000

—

10,000

—

Non-GAAP operating income

$

338,481

17.3

%

$

328,059

17.9

%

$

630,169

16.7

%

$

618,772

17.3

%

Interest income, net

$

12,412

0.6

%

$

9,080

0.5

%

$

19,319

0.5

%

$

18,613

0.5

%

Interest income on tariff refund4

(6,346

)

—

(6,346

)

—

Non-GAAP interest income, net

$

6,066

0.3

%

$

9,080

0.5

%

$

12,973

0.3

%

$

18,613

0.5

%

Earnings before income taxes

$

461,207

23.5

%

$

337,139

18.4

%

$

759,802

20.2

%

$

637,385

17.9

%

Tariff refund income1

(167,778

)

—

(167,778

)

—

Tariff refund-related vendor concessions2

47,464

—

47,464

—

Tariff refund-related employee recognition3

10,000

—

10,000

—

Interest income on tariff refund4

(6,346

)

—

(6,346

)

—

Non-GAAP earnings before income taxes

$

344,547

17.6

%

$

337,139

18.4

%

$

643,142

17.1

%

$

637,385

17.9

%

$

Tax rate

$

Tax rate

$

Tax rate

$

Tax rate

Income taxes

$

123,098

26.7

%

$

89,577

26.6

%

$

190,331

25.1

%

$

158,560

24.9

%

Tariff refund income1

(41,428

)

—

(41,428

)

—

Tariff refund-related vendor concessions2

11,720

—

11,720

—

Tariff refund-related employee recognition3

2,469

—

2,469

—

Interest income on tariff refund4

(1,567

)

—

(1,567

)

—

Non-GAAP income taxes

$

94,292

27.4

%

$

89,577

26.6

%

$

161,525

25.1

%

$

158,560

24.9

%

Diluted EPS

$

2.84

$

2.00

$

4.77

$

3.86

Tariff refund income1

(1.06

)

—

(1.06

)

—

Tariff refund-related vendor concessions2

0.30

—

0.30

—

Tariff refund-related employee recognition3

0.06

—

0.06

—

Interest income on tariff refund4

(0.04

)

—

(0.04

)

—

Non-GAAP diluted EPS5

$

2.10

$

2.00

$

4.03

$

3.86

1 During Q2 2026, we recognized a reduction to cost of goods sold of $167.8 million related to a refund of IEEPA tariffs.

2 During Q2 2026, we recorded a provision of $47.5 million to reimburse certain merchandise vendors that previously provided tariff-related concessions.

3 During Q2 2026, we recorded a one-time tariff-related employee recognition cost of $10.0 million, in the form of a discretionary 401(k) contribution to all eligible employees.

4 During Q2 2026, we recognized interest income of $6.3 million related to interest received on IEEPA tariff refunds.

5 Per share amounts may not sum due to rounding to the nearest cent per diluted share.

SEC Regulation G – Non-GAAP Information

These tables include non-GAAP gross profit, gross margin, selling, general and administrative expense, operating income, operating margin, interest income, earnings before income taxes, income taxes, effective tax rate and diluted EPS. 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 actual results on a comparable basis with prior periods. 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 financial measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

More News From Williams-Sonoma, Inc.

Bell & Brown Wealth Advisors LLC bought a new stake in Williams-Sonoma, Inc. (NYSE:WSM – Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 28,894 shares of the specialty retailer’s stock, valued at approximately $6,735,000. Williams-Sonoma comprises about 2.0% of Bell & Brown Wealth Advisors LLC’s portfolio, making the stock its 14th biggest position.

Several other hedge funds have also recently added to or reduced their stakes in the company. Strategic Advisory Partners LLC bought a new position in shares of Williams-Sonoma during the second quarter valued at approximately $272,000. Csenge Advisory Group bought a new stake in Williams-Sonoma in the second quarter valued at $407,000. Johnson Financial Group Inc. purchased a new position in Williams-Sonoma during the 2nd quarter valued at $151,000. Tocqueville Asset Management L.P. bought a new position in Williams-Sonoma in the 2nd quarter worth $19,046,000. Finally, Empirical Asset Management LLC bought a new position in Williams-Sonoma in the 2nd quarter worth $803,000. Institutional investors own 99.29% of the company’s stock.

Williams-Sonoma Price Performance Shares of NYSE WSM opened at $242.34 on Thursday. Williams-Sonoma, Inc. has a 1 year low of $165.51 and a 1 year high of $254.89. The stock has a market cap of $28.54 billion, a P/E ratio of 27.14, a price-to-earnings-growth ratio of 2.65 and a beta of 1.50. The firm has a 50-day moving average of $231.71 and a 200 day moving average of $207.33.

Williams-Sonoma (NYSE:WSM – Get Free Report) last announced its quarterly earnings data on Thursday, May 21st. The specialty retailer reported $1.93 earnings per share for the quarter, topping analysts’ consensus estimates of $1.80 by $0.13. The business had revenue of $1.81 billion for the quarter, compared to analysts’ expectations of $1.80 billion. Williams-Sonoma had a net margin of 13.81% and a return on equity of 53.29%. The business’s revenue was up 4.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.85 earnings per share. Research analysts expect that Williams-Sonoma, Inc. will post 9.38 earnings per share for the current fiscal year. Williams-Sonoma Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Friday, August 21st. Stockholders of record on Friday, July 17th will be given a $0.76 dividend. This represents a $3.04 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend is Friday, July 17th. Williams-Sonoma’s payout ratio is currently 34.04%.

Insider Transactions at Williams-Sonoma In other Williams-Sonoma news, CEO Laura Alber sold 15,000 shares of the stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $200.00, for a total transaction of $3,000,000.00. Following the sale, the chief executive officer directly owned 923,524 shares in the company, valued at approximately $184,704,800. This trade represents a 1.60% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Karalyn Yearout sold 1,112 shares of Williams-Sonoma stock in a transaction on Monday, June 15th. The stock was sold at an average price of $228.49, for a total value of $254,080.88. Following the completion of the sale, the executive vice president directly owned 21,717 shares of the company’s stock, valued at approximately $4,962,117.33. The trade was a 4.87% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 18,156 shares of company stock worth $3,738,699. 1.10% of the stock is currently owned by company insiders.

Analysts Set New Price Targets A number of equities research analysts have recently weighed in on the stock. Telsey Advisory Group lifted their target price on shares of Williams-Sonoma from $225.00 to $255.00 and gave the company an “outperform” rating in a research note on Thursday, August 13th. Bank of America assumed coverage on shares of Williams-Sonoma in a research note on Friday, June 12th. They issued a “buy” rating and a $250.00 price target for the company. Royal Bank Of Canada lifted their price objective on Williams-Sonoma from $192.00 to $260.00 and gave the company an “outperform” rating in a research report on Friday, August 14th. Argus set a $230.00 target price on Williams-Sonoma in a report on Friday, May 29th. Finally, Wells Fargo & Company increased their target price on Williams-Sonoma from $190.00 to $240.00 and gave the stock an “equal weight” rating in a research report on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $231.88.

Get Our Latest Analysis on Williams-Sonoma

Williams-Sonoma Profile (Free Report)

Williams‑Sonoma, Inc is a specialty retailer focused on the home and culinary markets, best known for premium cookware, kitchen tools and home furnishings. The company traces its roots to a single cookware store founded by Chuck Williams in 1956 in Sonoma, California, and has evolved into a multi‑brand home furnishings and housewares business. Its merchandise mix spans cookware and kitchen electrics, tabletop and food prep items, furniture, bedding, lighting and decorative accessories designed for both everyday use and higher‑end interiors.

The company operates a portfolio of consumer brands that target distinct segments of the home market.

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