Track market-moving stories before they get noisy

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.

Over the past month, shares of this seller of cookware and home furnishings have returned -7.7%, compared to the Zacks S&P 500 composite's -2% change. During this period, the Zacks Retail - Home Furnishings industry, which Williams-Sonoma falls in, has lost 11.9%. The key question now is: What could be the stock's future direction?

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 +1.1% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $9.51 points to a change of +7.6% from the prior year. Over the last 30 days, this estimate has changed +1.3%.

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 +2.4%.

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 $1.99 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.

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

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it 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.

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The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling shares, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.

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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.

WSM-IR

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.

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.â

Williams-Sonoma (WSM - Free Report) came out with quarterly earnings of $2.1 per share, beating the Zacks Consensus Estimate of $2.05 per share. This compares to earnings of $2 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +2.44%. A quarter ago, it was expected that this seller of cookware and home furnishings would post earnings of $1.8 per share when it actually produced earnings of $1.93, delivering a surprise of +7.22%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Williams-Sonoma, which belongs to the Zacks Retail - Home Furnishings industry, posted revenues of $1.96 billion for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 2.45%. This compares to year-ago revenues of $1.84 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Williams-Sonoma shares have added about 31.4% since the beginning of the year versus the S&P 500's gain of 12.2%.

What's Next for Williams-Sonoma?While Williams-Sonoma has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Williams-Sonoma was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.14 on $1.95 billion in revenues for the coming quarter and $9.38 on $8.15 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Home Furnishings is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Lovesac (LOVE - Free Report) , another stock in the same industry, has yet to report results for the quarter ended July 2026.

This company is expected to post quarterly loss of $0.39 per share in its upcoming report, which represents a year-over-year change of +13.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Lovesac's revenues are expected to be $163.39 million, up 1.8% from the year-ago quarter.

Key Takeaways Williams-Sonoma beat fiscal Q2 estimates, with adjusted EPS up 5% and net revenues up 6.7%.Tariff costs cut non-GAAP gross margin by 160 bps and adjusted operating margin by 60 bps.Williams-Sonoma raised 2026 revenue growth guidance to 4.7%-7.2%, with margin at 17.8%-18.2%. Williams-Sonoma, Inc. (WSM - Free Report) 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. Our model predicted consolidated comps growth of 4% for the fiscal second quarter.

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. Our model predicted a 180-bps year-over-year decline in the gross margin to 45.3% for the fiscal second quarter.

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 employment expense leverage. Higher general and advertising expenses each added 10 bps.

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. We anticipated the adjusted operating income to drop 3.9% year over year and the operating margin to contract 140 bps to 16.5% for the fiscal second quarter.

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 $10.00 million employee recognition cost. The company excluded these items from non-GAAP results. It also excluded $6.4 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 1.0% 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 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 4.0% 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.

WSM Stock’s Zacks Rank & Peer ReleasesWilliams-Sonoma currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Home Depot, Inc. (HD - Free Report) has delivered solid second-quarter fiscal 2026 results, with the top and bottom lines surpassing the Zacks Consensus Estimate. Adjusted earnings were $4.92 per share, up 5.1% year over year from $4.68. The figure topped the Zacks Consensus Estimate of $4.71.

Home Depot reaffirmed its fiscal 2026 outlook, calling for total sales growth of 2.5-4.5% and comps growth of flat to 2%. The company anticipates earnings per share to be flat to up 4% from $14.23 in the year-ago quarter. Meanwhile, adjusted earnings per share are also projected to be flat to up 4% from the $14.69 reported in the year-ago quarter.

Lowe’s Companies, Inc. (LOW - Free Report) reported second-quarter fiscal 2026 adjusted earnings of $4.40 per share, up 1.6% year over year, surpassing the Zacks Consensus Estimate of $4.22. Revenues rose 8.3% to $25,956 million but missed the consensus estimate of $26,135 million.

Lowe’s expects fiscal 2026 total sales of $92 billion compared with its prior range of $92-$94 billion. Comparable sales are projected to be flat, versus the previous expectation of flat to up 2%. The revision reflects first-half operating results and current demand trends.

Wayfair (W - Free Report) reported second-quarter 2026 earnings of 95 cents per share, which beat the Zacks Consensus Estimate of 94 cents. Net revenues for the second quarter of 2026 rose 7.5% year over year to $3.52 billion, surpassing the Zacks Consensus Estimate of $3.47 billion by 1.41%.

For the third quarter of 2026, Wayfair expects revenues to grow in the high single digits year over year. Adjusted EBITDA margin is guided in the 6% to 7% range for the third quarter.

Williams-Sonoma, Inc. (WSM) Q2 2027 Earnings Call August 26, 2026 10:00 AM EDT

Company Participants

Jeremy Brooks - Senior VP, Chief Accounting Officer & Head of IR
Laura Alber - President, CEO & Director
Jeff Howie - Executive VP & CFO
Sameer Hassan - Chief Technology & Digital Officer

Conference Call Participants

Katharine McShane - Goldman Sachs Group, Inc., Research Division
Peter Keith - Piper Sandler & Co., Research Division
Christopher Nardone - BofA Securities, Research Division
Michael Lasser - UBS Investment Bank, Research Division
Charles Grom - Gordon Haskett Research Advisors
Jonathan Matuszewski - Jefferies LLC, Research Division
Cristina Fernandez - Telsey Advisory Group LLC
Steven Zaccone - Citigroup Inc., Research Division
Maksim Rakhlenko - TD Cowen, Research Division

Presentation

Operator

Welcome to the Williams-Sonoma, Inc. Second Quarter Fiscal 2026 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Jeremy Brooks, Chief Accounting Officer and Head of Investor Relations. Please go ahead.

Jeremy Brooks
Senior VP, Chief Accounting Officer & Head of IR

Good morning, and thank you for joining our second quarter earnings call. Before we get started, I'd like to remind you that during this call, we will make forward-looking statements with respect to future events and financial performance, including our updated annual guidance for fiscal '26 and our long-term outlook. We believe these statements reflect our best estimates. However, we cannot make any assurances that these statements will materialize, and actual results may differ significantly from our expectations. The company undertakes no obligation to publicly update or revise any of these statements to reflect events or circumstances that may arise after today's call.

Additionally, we will refer to our Q2 results on a non-GAAP basis, which excludes the recognition of income from tariff refunds and other tariff-related adjustments. The amounts and detail of these adjustments, along with a reconciliation of our GAAP to

Williams-Sonoma, Inc. (NYSE:WSM) on Wednesday reported better-than-expected second-quarter 2026 results and raised its full-year outlook.

Net revenue rose 6.7% year over year to $1.96 billion, beating the $1.93 billion estimate. Adjusted diluted earnings increased 5% to $2.10 per share, topping the $2.08 estimate. GAAP diluted earnings jumped 42% to $2.84 per share.

Williams-Sonoma raised its fiscal 2026 comparable revenue growth forecast to 4% to 6.5%. It now expects net revenue to grow 4.7% to 7.2%. The company lifted its sales forecast to $8.17 billion to $8.37 billion from $8.02 billion to $8.33 billion. The midpoint is above the $8.18 billion analyst estimate.

“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.

Williams-Sonoma shares fell 1.5% to trade at $233.45 on Thursday.

These analysts made changes to their price targets on Williams-Sonoma following earnings announcement.

Keybanc analyst Bradley B. Thomas maintained the stock with an Overweight rating and raised the price target from $250 to $270. Evercore ISI Group analyst Oliver Wintermantel maintained the stock with an In-Line rating and raised the price target from $240 to $245. Morgan Stanley analyst Simeon Gutman maintained the stock with an Equal-Weight rating and raised the price target from $210 to $240. Trending

Considering buying WSM stock? Here’s what analysts think:

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Wall Street analysts expect Williams-Sonoma (WSM - Free Report) to post quarterly earnings of $2.05 per share in its upcoming report, which indicates a year-over-year increase of 2.5%. Revenues are expected to be $1.91 billion, up 4.1% from the year-ago quarter.

The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

In light of this perspective, let's dive into the average estimates of certain Williams-Sonoma metrics that are commonly tracked and forecasted by Wall Street analysts.

Analysts' assessment points toward 'Comparable store sales - Total - YoY change' reaching 4.2%. The estimate compares to the year-ago value of 3.7%.

The consensus estimate for 'Comparable store sales - West Elm - YoY change - WSM' stands at 5.9%. The estimate compares to the year-ago value of 3.3%.

Analysts expect 'Comparable store sales - Pottery Barn Kids and Teen - YoY change' to come in at 4.6%. Compared to the current estimate, the company reported 5.3% in the same quarter of the previous year.

The collective assessment of analysts points to an estimated 'Comparable store sales - Williams-Sonoma - YoY change' of 5.4%. Compared to the current estimate, the company reported 5.1% in the same quarter of the previous year.

According to the collective judgment of analysts, 'Number of stores - Total' should come in at 508 . The estimate is in contrast to the year-ago figure of 509 .

The combined assessment of analysts suggests that 'Number of stores - Pottery Barn Kids' will likely reach 44 . The estimate is in contrast to the year-ago figure of 44 .

Analysts predict that the 'Number of stores - Pottery Barn' will reach 181 . The estimate is in contrast to the year-ago figure of 181 .

Based on the collective assessment of analysts, 'Number of stores - West Elm' should arrive at 117 . The estimate compares to the year-ago value of 119 .

The consensus among analysts is that 'Number of stores - Williams-Sonoma' will reach 153 . Compared to the present estimate, the company reported 154 in the same quarter last year.

The average prediction of analysts places 'Number of stores - Rejuvenation' at 14 . Compared to the current estimate, the company reported 11 in the same quarter of the previous year.

View all Key Company Metrics for Williams-Sonoma here>>>

Over the past month, shares of Williams-Sonoma have returned +7.8% versus the Zacks S&P 500 composite's +2.8% change. Currently, WSM carries a Zacks Rank #2 (Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

powered by

Toll Brothers (TOL)

Buy TOL. The Treasury is pushing down 10–30Y yields, which directly lowers mortgage rates and boosts homebuyer affordability. TOL has the highest 60-day correlation to TLT (0.71), so it should be the cleanest “rates-to-housing” winner if yield relief lasts long enough to hit order cycles. Q3 was slightly ahead on EPS/revenue but flat on guidance—meaning the next catalyst is whether lower rates translate into stronger deliveries/orders.

Key Risk: Mortgage rates stop falling (or fall too late), so buyer demand doesn’t improve before the next order cycle.

Williams-Sonoma (WSM)

Buy WSM. It’s the second-highest TLT-correlated name (0.64) and benefits from lower long yields through both existing-home turnover and cheaper financing for big-ticket remodels and furniture. The timing matters: earnings on Aug 26 is the first chance to confirm that rate relief is showing up in demand and order volumes, not just in bond prices.

Key Risk: WSM reports that demand is still weak because consumers aren’t responding to lower rates (or credit conditions don’t actually loosen for shoppers).

US Treasury Department announced on August 19 that it will at least double its liquidity-support buybacks for 10-year to 30-year debt – a surprise mid-cycle move from Secretary Scott Bessent weeks after publishing the quarter’s schedule.

The intervention landed as outstanding public debt crossed $40 trillion for the first time.

Long yields responded immediately: the 30-year fell from 5.26% to 5.18% after touching a 2007-era high near 5.3%, while the 10-year eased from 4.68% to 4.63%.

Bessent’s announcement resulted in a rebound in US stocks, as represented by the benchmark S&P 500 index as well.

Here are three names that have the highest 60-day correlation to the iShares 20+ Year Treasury Bond ETF (TLT).

Toll Brothers leads the homebuilder cohort with the highest 0.71 60-day correlation to TLT. Long yields feed directly into mortgage rates – which govern affordability and buyer demand.

TOL also reported its fiscal Q3 results on Wednesday, featuring $2.97 per share of earnings (EPS) on $2.65 billion in revenue ahead of the consensus estimates set at $2.93 a share and $2.61 billion, respectively.

Q4 delivery guidance of 3,450 to 3,550 homes came in just under the Street’s 3,508 estimate, which is why the stock ended about flat.

The next test is whether Wednesday’s yield relief holds long enough to move mortgage rates before its next order cycle.

Williams-Sonoma, a San Francisco-headquartered retailer of kitchenware and home furnishings, also shows marked sensitivity to long-bond swings, with its 60-day correlation to TLT at 0.64.

The exposure runs through two channels: existing-home turnover – which drives demand for new furnishings and typically tracks mortgage rates – and direct financing on big-ticket purchases like furniture and kitchen remodels, where lower long yields translate into cheaper credit for shoppers.

Falling yields ease both constraints simultaneously.

Williams-Sonoma reports quarterly results on August 26, a week after Wednesday’s announcement – which would likely offer more colour on whether the rate move is reaching order volumes yet.

Alaska Air has its 60-day correlation to TLT at about 0.60 currently, indicating yields tend to affect its stock price rather significantly.

The correlation runs through balance-sheet mechanics: airlines carry heavy debt and aircraft-lease obligations – borrowing costs move with long yields, while tighter financial conditions often cool discretionary leisure demand.

However, Alaska Air Group Inc’s setup is complicated by company-specific strain: a Q2 2026 adjusted loss driven by elevated fuel costs, plus hurricane disruption to Hawaii operations in mid-August, now folded in through the Hawaiian Airlines integration.

Therefore, whether Wednesday’s yield relief moves the ALK stock price will likely hinge less on the correlation to TLT than on how quickly fuel costs and storm recovery clear the air carrier’s balance sheet.

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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SAN FRANCISCO--(BUSINESS WIRE)--Williams-Sonoma, Inc. (NYSE: WSM) announced today that it will release its second quarter results on Wednesday, August 26th, 2026 before the market opens. Following the release via the wire services, the Company will host a conference call beginning at 10:00 AM Eastern Time, which can be accessed at http://ir.williams-sonomainc.com/events. Following the call, a replay of the webcast will be available at http://ir.williams-sonomainc.com/events beginning at 12:00 PM Eastern Time on Wednesday, August 26th, 2026.

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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Williams-Sonoma (WSM - Free Report) closed the most recent trading day at $245.15, moving -2.17% from the previous trading session. This change lagged the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.54%.

The stock of seller of cookware and home furnishings has risen by 13.73% in the past month, leading the Retail-Wholesale sector's gain of 5.63% and the S&P 500's gain of 2.13%.

Investors will be eagerly watching for the performance of Williams-Sonoma in its upcoming earnings disclosure. On that day, Williams-Sonoma is projected to report earnings of $2.05 per share, which would represent year-over-year growth of 2.5%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.91 billion, indicating a 4.14% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.38 per share and a revenue of $8.15 billion, representing changes of +6.11% and +4.34%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Williams-Sonoma. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.1% fall in the Zacks Consensus EPS estimate. Williams-Sonoma is currently a Zacks Rank #3 (Hold).

In terms of valuation, Williams-Sonoma is presently being traded at a Forward P/E ratio of 26.71. This expresses a premium compared to the average Forward P/E of 21.61 of its industry.

It's also important to note that WSM currently trades at a PEG ratio of 2.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Retail - Home Furnishings stocks are, on average, holding a PEG ratio of 2.11 based on yesterday's closing prices.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 215, this industry ranks in the bottom 13% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Williams-Sonoma (WSM - Free Report) , which belongs to the Zacks Retail - Home Furnishings industry.

This seller of cookware and home furnishings has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 6.21%.

For the last reported quarter, Williams-Sonoma came out with earnings of $1.93 per share versus the Zacks Consensus Estimate of $1.8 per share, representing a surprise of 7.22%. For the previous quarter, the company was expected to post earnings of $2.89 per share and it actually produced earnings of $3.04 per share, delivering a surprise of 5.19%.

Price and EPS Surprise

For Williams-Sonoma, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Williams-Sonoma currently has an Earnings ESP of +3.38%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner.

Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Posted by Defense World Staff on Jul 30th, 2026

Williams-Sonoma, Inc. (NYSE:WSM – Get Free Report) has been given an average rating of “Moderate Buy” by the eighteen ratings firms that are currently covering the stock, MarketBeat reports. Nine investment analysts have rated the stock with a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $215.4706.

A number of research analysts have weighed in on WSM shares. Citigroup decreased their price objective on Williams-Sonoma from $208.00 to $200.00 and set a “neutral” rating on the stock in a report on Tuesday, May 12th. Argus set a $230.00 target price on shares of Williams-Sonoma in a report on Friday, May 29th. Piper Sandler started coverage on shares of Williams-Sonoma in a research report on Monday. They issued an “overweight” rating and a $253.00 target price for the company. The Goldman Sachs Group raised shares of Williams-Sonoma from a “neutral” rating to a “buy” rating and raised their price target for the stock from $185.00 to $218.00 in a research note on Monday, April 13th. Finally, Wells Fargo & Company set a $190.00 price target on shares of Williams-Sonoma and gave the stock an “equal weight” rating in a research report on Friday, May 22nd.

Read Our Latest Analysis on Williams-Sonoma

Williams-Sonoma Trading Down 1.0% NYSE:WSM opened at $233.92 on Monday. The stock has a 50 day moving average of $219.46 and a two-hundred day moving average of $203.54. Williams-Sonoma has a 12 month low of $165.51 and a 12 month high of $244.65. The firm has a market cap of $27.54 billion, a P/E ratio of 26.19, a price-to-earnings-growth ratio of 2.59 and a beta of 1.49.

Williams-Sonoma (NYSE:WSM – Get Free Report) last released its earnings results on Thursday, May 21st. The specialty retailer reported $1.93 earnings per share for the quarter, beating the consensus estimate of $1.80 by $0.13. Williams-Sonoma had a return on equity of 53.29% and a net margin of 13.81%.The business had revenue of $1.81 billion for the quarter, compared to the consensus estimate of $1.80 billion. During the same quarter last year, the business posted $1.85 earnings per share. The business’s quarterly revenue was up 4.4% compared to the same quarter last year. On average, research analysts forecast that Williams-Sonoma will post 9.38 earnings per share for the current year.

Williams-Sonoma Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Friday, August 21st. Shareholders of record on Friday, July 17th will be paid a $0.76 dividend. This represents a $3.04 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend is Friday, July 17th. Williams-Sonoma’s dividend payout ratio (DPR) is 34.04%.

Insider Buying and Selling In other news, CEO Laura Alber sold 20,000 shares of the company’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $172.61, for a total value of $3,452,200.00. Following the completion of the sale, the chief executive officer directly owned 938,524 shares in the company, valued at $161,998,627.64. This represents a 2.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Karalyn Yearout sold 1,112 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were 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. This represents a 4.87% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 36,634 shares of company stock worth $6,812,283 over the last three months. Corporate insiders own 1.10% of the company’s stock.

Hedge Funds Weigh In On Williams-Sonoma Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC lifted its holdings in Williams-Sonoma by 22.4% in the fourth quarter. Brighton Jones LLC now owns 6,742 shares of the specialty retailer’s stock valued at $1,248,000 after acquiring an additional 1,236 shares during the last quarter. Bison Wealth LLC acquired a new stake in Williams-Sonoma during the fourth quarter worth $227,000. Woodline Partners LP purchased a new stake in Williams-Sonoma in the first quarter valued at $1,644,000. Guggenheim Capital LLC raised its position in Williams-Sonoma by 9.0% in the second quarter. Guggenheim Capital LLC now owns 4,153 shares of the specialty retailer’s stock valued at $678,000 after purchasing an additional 342 shares during the period. Finally, Brown Advisory Inc. lifted its stake in shares of Williams-Sonoma by 5.9% in the 2nd quarter. Brown Advisory Inc. now owns 4,631 shares of the specialty retailer’s stock valued at $757,000 after purchasing an additional 260 shares during the last quarter. Institutional investors and hedge funds own 99.29% of the company’s stock.

Williams-Sonoma Company Profile (Get 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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Alamar Capital Management LLC bought a new stake in Williams-Sonoma, Inc. (NYSE:WSM – Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 6,325 shares of the specialty retailer’s stock, valued at approximately $1,153,000.

A number of other large investors have also added to or reduced their stakes in the company. State Street Corp grew its stake in shares of Williams-Sonoma by 2.5% during the third quarter. State Street Corp now owns 6,139,477 shares of the specialty retailer’s stock valued at $1,199,961,000 after acquiring an additional 147,780 shares in the last quarter. First Trust Advisors LP lifted its stake in shares of Williams-Sonoma by 9.2% in the first quarter. First Trust Advisors LP now owns 2,664,580 shares of the specialty retailer’s stock worth $485,833,000 after acquiring an additional 224,128 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in shares of Williams-Sonoma by 7.3% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,919,466 shares of the specialty retailer’s stock worth $342,797,000 after acquiring an additional 130,940 shares in the last quarter. Norges Bank purchased a new position in Williams-Sonoma in the fourth quarter valued at about $316,920,000. Finally, Invesco Ltd. boosted its holdings in Williams-Sonoma by 5.5% in the fourth quarter. Invesco Ltd. now owns 1,661,365 shares of the specialty retailer’s stock valued at $296,703,000 after purchasing an additional 86,807 shares during the last quarter. 99.29% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In WSM has been the topic of several analyst reports. Argus set a $230.00 price objective on Williams-Sonoma in a report on Friday, May 29th. KeyCorp increased their target price on Williams-Sonoma from $230.00 to $250.00 and gave the company an “overweight” rating in a research note on Tuesday, July 7th. Barclays set a $190.00 price target on shares of Williams-Sonoma and gave the stock an “equal weight” rating in a research report on Friday, May 22nd. Evercore set a $200.00 price target on shares of Williams-Sonoma in a research note on Tuesday, April 14th. Finally, The Goldman Sachs Group raised shares of Williams-Sonoma from a “neutral” rating to a “buy” rating and upped their price target for the company from $185.00 to $218.00 in a report on Monday, April 13th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $213.12.

View Our Latest Stock Report on WSM

Williams-Sonoma Trading Up 0.6% Shares of NYSE WSM opened at $222.35 on Thursday. The company has a market capitalization of $26.18 billion, a price-to-earnings ratio of 24.90, a price-to-earnings-growth ratio of 2.42 and a beta of 1.49. Williams-Sonoma, Inc. has a twelve month low of $165.51 and a twelve month high of $244.65. The business has a 50 day simple moving average of $213.74 and a 200-day simple moving average of $202.24.

Williams-Sonoma (NYSE:WSM – Get Free Report) last released its quarterly earnings data on Thursday, May 21st. The specialty retailer reported $1.93 EPS for the quarter, topping analysts’ consensus estimates of $1.80 by $0.13. Williams-Sonoma had a net margin of 13.81% and a return on equity of 53.29%. The firm had revenue of $1.81 billion during the quarter, compared to the consensus estimate of $1.80 billion. During the same quarter in the previous year, the company posted $1.85 earnings per share. The firm’s revenue was up 4.4% on a year-over-year basis. As a group, equities analysts predict that Williams-Sonoma, Inc. will post 9.39 earnings per share for the current year.

Williams-Sonoma Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Friday, August 21st. Shareholders of record on Friday, July 17th will be paid a $0.76 dividend. This represents a $3.04 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date is Friday, July 17th. Williams-Sonoma’s payout ratio is presently 34.04%.

Insider Activity at Williams-Sonoma In other news, CEO Laura Alber sold 20,000 shares of the company’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $172.61, for a total transaction of $3,452,200.00. Following the completion of the transaction, the chief executive officer directly owned 938,524 shares of the company’s stock, valued at approximately $161,998,627.64. This represents a 2.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Karalyn Yearout sold 1,112 shares of the stock in a transaction that occurred 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 sale, the executive vice president owned 21,717 shares in the company, valued at $4,962,117.33. The trade was a 4.87% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 36,634 shares of company stock valued at $6,812,283 over the last ninety days. Corporate insiders own 1.10% of the company’s stock.

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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Williams-Sonoma (WSM - Free Report) closed at $223.34 in the latest trading session, marking a -2.22% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.19%. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 0.05%.

Coming into today, shares of the seller of cookware and home furnishings had gained 0.66% in the past month. In that same time, the Retail-Wholesale sector gained 2.41%, while the S&P 500 gained 0.55%.

Market participants will be closely following the financial results of Williams-Sonoma in its upcoming release. In that report, analysts expect Williams-Sonoma to post earnings of $2.03 per share. This would mark year-over-year growth of 1.5%. At the same time, our most recent consensus estimate is projecting a revenue of $1.91 billion, reflecting a 4.16% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.39 per share and a revenue of $8.15 billion, indicating changes of +6.22% and +4.4%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Williams-Sonoma. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.08% decrease. Williams-Sonoma is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Williams-Sonoma currently has a Forward P/E ratio of 24.32. This indicates a premium in contrast to its industry's Forward P/E of 22.57.

It's also important to note that WSM currently trades at a PEG ratio of 2.5. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Home Furnishings industry had an average PEG ratio of 1.93 as trading concluded yesterday.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 171, finds itself in the bottom 31% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Top retail brands have struggled to grow revenue amid inflation and soft consumer spending over the past few years. This has particularly weighed on growth in home goods and furnishings. Despite these headwinds, shares of Williams-Sonoma (WSM +1.57%) have outperformed RH (RH +5.14%).

Here’s a look at how these retail companies compare on revenue performance, and which could be the better bet beyond 2026.

Williams-Sonoma: Navigating Seasonal Revenue CyclesWilliams-Sonoma functions as a specialized, multi-channel retailer offering a diverse array of home products. While managing a product recall and launching a new brand for dorm rooms, the company reported an approximately 13% net income margin for the quarter ended May 3, 2026.

RH: Maintaining Flat Revenue TrendsRH operates as a retailer specializing in home furnishings through its retail galleries, catalogs, and online platforms. While opening new international gallery locations in Milan and London, it reported an EBIT margin of approximately 4% for the quarter ended May 2, 2026.

Why Revenue Matters for Retail InvestorsRevenue is the most fundamental measure of a company’s performance. Investors can easily track it over time to measure a business’s overall scale and demand, which can be very helpful when comparing it with others in the same industry.

Quarterly Revenue for Williams-Sonoma and RHQuarter (Period End)Williams-Sonoma RevenueRH RevenueQ3 2024$1.8 billion (period ended July 2024)$829.7 million (period ended Aug. 2024)Q4 2024$1.8 billion (period ended Oct. 2024)$811.7 million (period ended Nov. 2024)Q1 2025 (Jan. 2025)$2.5 billion$812.4 millionQ2 2025$1.7 billion (period ended May 2025)$814.0 million (period ended May 2025)Q3 2025$1.8 billion (period ended Aug. 2025)$899.2 million (period ended Aug. 2025)Q4 2025$1.9 billion (period ended Nov. 2025)$883.8 million (period ended Nov. 2025)Q1 2026$2.4 billion (period ended Feb. 2026)$842.6 million (period ended Jan. 2026)Q2 2026$1.8 billion (period ended May 2026)$800.3 million (period ended May 2026)Data source: Company filings. Data as of July 13, 2026.

Foolish TakeMacroeconomic headwinds, including higher prices and interest rates, have weighed on both companies’ revenue growth. However, Williams-Sonoma has managed to convert a higher percentage of its revenue into net income, boosting its share price. RH hasn’t fared as well on the margin front, which has tanked its stock price.

A near-term catalyst for Williams-Sonoma is near-term market share gains and continued momentum in comparable store sales growth. Comp sales, which measure performance excluding new stores, grew 4.8% year over year last quarter. This looks particularly strong in an overall weak market for home goods.

RH hasn’t been able to maintain its margins, but it has a history of earning above-average retail margins in a healthy home furnishings market. This is noteworthy given management’s forward guidance. It now expects full-year revenue to grow 4.5% to 8%, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin reaching the mid-teens.

Both stocks are trading at a similar forward price-to-earnings multiple of about 24. However, analysts expect RH to post earnings growth of approximately 16% annualized over the next two years, compared to just 7% for Williams-Sonoma. This could make RH stock the better buy right now.

RH will need to execute. It needs to meet guidance in revenue growth and margins. Long term, RH’s international expansion efforts might be the catalyst that narrows its revenue gap with Williams-Sonoma, potentially leading to superior returns for shareholders.

Pottery Barn Teen, a portfolio brand of Williams-Sonoma, Inc. (NYSE: WSM), the world's largest digital-first, design-led and sustainable home retailer, announc

Williams-Sonoma (WSM - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this seller of cookware and home furnishings have returned +4.4%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Retail - Home Furnishings industry, which Williams-Sonoma falls in, has gained 9.4%. The key question now is: What could be the stock's future direction?

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 EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

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.

Williams-Sonoma is expected to post earnings of $2.03 per share for the current quarter, representing a year-over-year change of +1.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.

For the current fiscal year, the consensus earnings estimate of $9.39 points to a change of +6.2% from the prior year. Over the last 30 days, this estimate has changed +0.6%.

For the next fiscal year, the consensus earnings estimate of $10.25 indicates a change of +9.1% from what Williams-Sonoma is expected to report a year ago. Over the past month, the estimate has changed +0.7%.

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

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Williams-Sonoma, the consensus sales estimate for the current quarter of $1.91 billion indicates a year-over-year change of +4.2%. For the current and next fiscal years, $8.15 billion and $8.51 billion estimates indicate +4.4% and +4.4% changes, respectively.

Last Reported Results and Surprise HistoryWilliams-Sonoma reported revenues of $1.81 billion in the last reported quarter, representing a year-over-year change of +4.4%. EPS of $1.93 for the same period compares with $1.85 a year ago.

Compared to the Zacks Consensus Estimate of $1.8 billion, the reported revenues represent a surprise of +0.05%. The EPS surprise was +7.22%.

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.

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

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.

Bottom LineThe 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.

Williams-Sonoma (WSM - Free Report) ended the recent trading session at $223.83, demonstrating a -1.63% change from the preceding day's closing price. This change lagged the S&P 500's 0.72% gain on the day. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.12%.

Prior to today's trading, shares of the seller of cookware and home furnishings had gained 11% outpaced the Retail-Wholesale sector's loss of 0.64% and the S&P 500's loss of 0.9%.

The investment community will be paying close attention to the earnings performance of Williams-Sonoma in its upcoming release. On that day, Williams-Sonoma is projected to report earnings of $2.03 per share, which would represent year-over-year growth of 1.5%. In the meantime, our current consensus estimate forecasts the revenue to be $1.91 billion, indicating a 4.16% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.39 per share and revenue of $8.15 billion, indicating changes of +6.22% and +4.4%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Williams-Sonoma. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.61% rise in the Zacks Consensus EPS estimate. Right now, Williams-Sonoma possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Williams-Sonoma has a Forward P/E ratio of 24.23 right now. This valuation marks a premium compared to its industry average Forward P/E of 23.84.

We can also see that WSM currently has a PEG ratio of 2.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Retail - Home Furnishings industry held an average PEG ratio of 1.98.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 209, positioning it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Williams Sonoma, portfolio brand of Williams-Sonoma, Inc. (NYSE: WSM), the world's largest digital-first, design-led and sustainable home retailer, announced t

Pottery Barn Kids, portfolio brand of Williams-Sonoma, Inc. (NYSE: WSM), the world's largest digital-first, design-led and sustainable home retailer, announced

Williams-Sonoma (WSM - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this seller of cookware and home furnishings have returned +14%, compared to the Zacks S&P 500 composite's -1.3% change. During this period, the Zacks Retail - Home Furnishings industry, which Williams-Sonoma falls in, has gained 3.4%. The key question now is: What could be the stock's future direction?

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 EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Williams-Sonoma is expected to post earnings of $2.03 per share, indicating a change of +1.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.5% over the last 30 days.

The consensus earnings estimate of $9.49 for the current fiscal year indicates a year-over-year change of +7.4%. This estimate has changed +2.2% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $10.22 indicates a change of +7.7% from what Williams-Sonoma is expected to report a year ago. Over the past month, the estimate has changed +0.6%.

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 $1.91 billion indicates a year-over-year change of +4.2%. For the current and next fiscal years, $8.15 billion and $8.51 billion estimates indicate +4.4% and +4.4% changes, respectively.

Last Reported Results and Surprise HistoryWilliams-Sonoma reported revenues of $1.81 billion in the last reported quarter, representing a year-over-year change of +4.4%. EPS of $1.93 for the same period compares with $1.85 a year ago.

Compared to the Zacks Consensus Estimate of $1.8 billion, the reported revenues represent a surprise of +0.05%. The EPS surprise was +7.22%.

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

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

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

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.

Bottom LineThe 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.

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New Collection Celebrates the Popular Fashion House’s Signature Prints and Patterns for Stylish Tabletop and Home Furnishing Collections

SAN FRANCISCO--(BUSINESS WIRE)--Williams Sonoma and Williams Sonoma Home, portfolio brands of Williams-Sonoma, Inc. (NYSE: WSM), the world’s largest digital-first, design-led and sustainable home retailer, announced today a new collaboration with Hill House Home, the fashion and lifestyle brand founded by Nell Diamond. The new collaborations for both Williams Sonoma and Williams Sonoma Home reimagine Hill House’s beloved feminine and romantic aesthetic through thoughtfully curated assortments of dinnerware, kitchen textiles, bedding, entertaining essentials, furniture and decorative accents for the home. Featuring romantic florals, soft color palettes, heirloom-inspired details, and elevated craftsmanship, the collection blends Hill House’s signature charm and iconic prints and patterns with Williams Sonoma and Williams Sonoma Home’s heritage of quality and design.

Created for gathering, hosting, and everyday rituals alike, the new collections provide customers with elevated summer entertaining options designed to be utilized both indoors and outside the home. Each piece reflects an intentional balance of beauty and functionality, pairing heirloom-inspired style with elevated materials and thoughtful craftsmanship made to be used, loved, and shared season after season. Across the assortment, signature floral prints, botanical patterns, soft stripes and lattice patterns appear on items ranging from dinnerware and serveware pieces to Italian-woven percale bedding, embroidered linens and decorative accessories. The collection also features scalloped details, woven materials and vintage-inspired silhouettes designed to bring a garden-inspired aesthetic to everyday entertaining and living spaces.

“For Williams Sonoma and Williams Sonoma Home, we love collaborating with brands that have created a distinctive visual identity and finding new ways to translate that point of view into the home,” said Felix Cabullido, President of Williams Sonoma. “With Hill House, we were able to reinterpret the brand’s inspirational prints, romantic sensibility and attention to detail resulting in a collection that feels both aspirational and approachable.”

“Williams Sonoma is a brand I have admired and shopped for years, and one that so many of us associate with creating a warm, welcoming home,” said Hill House Founder & CEO, Nell Diamond. "I started Hill House as a home brand, so this collaboration feels incredibly meaningful and full circle to see our prints and aesthetic come to life on so many different home, tabletop, entertaining and furniture pieces. Together, we have created a collection that celebrates gathering, everyday rituals, and the idea that beautiful, thoughtfully designed pieces can make even the simplest moments feel special.”

To celebrate the launch of this new collaboration, Williams Sonoma, Williams Sonoma Home, and Hill House Home will host a special event on Wednesday, June 24, at 5:30PM inside the Williams Sonoma store at Columbus Circle in New York City. Customers are invited to experience the charming world of Hill House to sip signature drinks from Nell’s Coffee Bar while shopping the collection and enjoying a special meet-and-greet with Hill House founder, Nell Diamond.

For more information on the Hill House Home for Williams Sonoma and Williams Sonoma Home collaboration, please visit www.williams-sonoma.com/hillhouse.

ABOUT WILLIAMS SONOMA

Since its founding by Chuck Williams in 1956, the Williams Sonoma brand has been bringing people together around food. A member of Williams-Sonoma, Inc. (NYSE: WSM) portfolio of brands, Williams Sonoma is a leading specialty retailer of high-quality products for the kitchen and home, providing world-class service and an engaging customer experience. Products include cookware, cooks’ tools, cutlery, electrics, bakeware, food, tabletop and bar, outdoor, cookbooks, as well as furniture, lighting and decorative accessories. Each store offers cooking classes and tastings conducted by expert culinary staff. A comprehensive gift registry program for weddings and other special events is available in stores and online. On williams-sonoma.com, customers can find recipes, tips, and techniques that help them create delicious meals. Williams Sonoma is also part of The Key Rewards, a free-to-join loyalty program that offers members exclusive benefits across the Williams-Sonoma, Inc. family of brands.

Williams Sonoma can also be found on Facebook, Instagram, Pinterest and YouTube.

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.

ABOUT HILL HOUSE HOME

Hill House Home is a lifestyle brand reimagining everyday rituals through timeless design. Founded in 2016, the brand began with bedding and has since expanded into ready to wear, accessories, baby, and home. Known for its proprietary Nap Dress and romantic, heritage inspired aesthetic, Hill House Home blends comfort and polish in pieces designed to be worn and lived in for years. With an emphasis on thoughtful craftsmanship, quality fabrics, and accessible luxury, the brand creates items that feel both special and effortless, inviting customers to find beauty in the everyday.

WSM-PR

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