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Investors with an interest in Retail - Home Furnishings stocks have likely encountered both Alliance Laundry Holdings (ALH) and Williams-Sonoma (WSM). But which of these two stocks is more attractive to value investors?

SAN FRANCISCO--(BUSINESS WIRE)--Mark & Graham, a portfolio brand of Williams-Sonoma, Inc. (NYSE: WSM), the world's largest digital-first, design-led and sustainable home retailer, announced today an exclusive collaboration with New York City Ballet that celebrates the wonder, artistry, and timeless holiday tradition of George Balanchine's The Nutcracker®. The New York City Ballet for Mark & Graham collection translates the magic of the beloved production into a whimsical assortment of p.

Williams-Sonoma (WSM - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this seller of cookware and home furnishings have returned +9.8%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Retail - Home Furnishings industry, which Williams-Sonoma falls in, has gained 2.8%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather 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 $2.16 per share for the current quarter, representing a year-over-year change of +10.2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

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 remained unchanged.

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 remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Williams-Sonoma is rated Zacks Rank #3 (Hold).

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

12 Month EPS

Projected Revenue GrowthWhile 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.

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

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.

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.

Williams-Sonoma, Inc. (NYSE: WSM - Get Free Report) Director Anne Finucane sold 794 shares of the company's stock in a transaction on Friday, October 16th. The stock was sold at an average price of $252.14, for a total value of $200,199.16. Following the sale, the director directly owned 9,404 shares in the company, valued at $2,371,124.56.

Williams-Sonoma, Inc. (NYSE:WSM – Get Free Report) reached a new 52-week high during mid-day trading on Friday. The stock traded as high as $255.33 and last traded at $253.2960, with a volume of 117,113 shares traded. The stock had previously closed at $252.03.

Wall Street Analysts Forecast Growth WSM has been the subject of a number of recent analyst reports. The Goldman Sachs Group reiterated a “buy” rating and issued a $261.00 price target (up from $230.00) on shares of Williams-Sonoma in a research note on Tuesday, August 11th. Guggenheim reissued a “neutral” rating on shares of Williams-Sonoma in a research report on Thursday, August 27th. Credit Suisse Group set a $261.00 price objective on shares of Williams-Sonoma in a research note on Monday, August 24th. Argus upped their target price on shares of Williams-Sonoma from $230.00 to $250.00 and gave the company a “buy” rating in a report on Wednesday, September 2nd. Finally, Seaport Research Partners reaffirmed a “buy” rating on shares of Williams-Sonoma in a report on Friday, August 14th. Ten equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $245.56.

Get Our Latest Research Report on WSM

Williams-Sonoma Trading Down 0.9% The company has a 50 day moving average price of $234.08 and a 200 day moving average price of $216.94. The company has a market capitalization of $29.43 billion, a P/E ratio of 25.58, a P/E/G ratio of 2.71 and a beta of 1.48. Williams-Sonoma (NYSE:WSM – Get Free Report) last posted its earnings results on Wednesday, August 26th. The specialty retailer reported $2.10 earnings per share for the quarter, topping analysts’ consensus estimates of $2.08 by $0.02. Williams-Sonoma had a return on equity of 53.48% and a net margin of 14.73%. The business had revenue of $1.96 billion for the quarter, compared to analyst estimates of $1.93 billion. During the same period in the previous year, the firm earned $2.00 EPS. The firm’s revenue was up 6.7% compared to the same quarter last year. As a group, sell-side analysts forecast that Williams-Sonoma, Inc. will post 9.51 EPS for the current fiscal year.

Williams-Sonoma Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 20th. Shareholders of record on Friday, October 16th will be given a dividend of $0.76 per share. This represents a $3.04 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Friday, October 16th. Williams-Sonoma’s payout ratio is 31.12%.

Insider Activity at Williams-Sonoma In other Williams-Sonoma news, CEO Laura Alber sold 35,000 shares of the company’s stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $221.20, for a total value of $7,742,000.00. Following the transaction, the chief executive officer directly owned 853,524 shares in the company, valued at $188,799,508.80. The trade was a 3.94% 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 hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Karalyn Yearout sold 1,000 shares of the stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $250.00, for a total transaction of $250,000.00. Following the completion of the transaction, the executive vice president directly owned 20,717 shares in the company, valued at $5,179,250. The trade was a 4.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 40,883 shares of company stock valued at $9,117,518 in the last ninety days. Company insiders own 1.10% of the company’s stock.

Institutional Inflows and Outflows Institutional investors and hedge funds have recently bought and sold shares of the stock. Brown Lisle Cummings Inc. lifted its position in Williams-Sonoma by 11.1% during the first quarter. Brown Lisle Cummings Inc. now owns 622 shares of the specialty retailer’s stock worth $113,000 after acquiring an additional 62 shares during the last quarter. Mediolanum International Funds Ltd grew its position in shares of Williams-Sonoma by 0.6% in the first quarter. Mediolanum International Funds Ltd now owns 11,262 shares of the specialty retailer’s stock valued at $1,992,000 after purchasing an additional 67 shares during the last quarter. Parallel Advisors LLC grew its position in shares of Williams-Sonoma by 2.2% in the first quarter. Parallel Advisors LLC now owns 3,203 shares of the specialty retailer’s stock valued at $584,000 after purchasing an additional 70 shares during the last quarter. GAMMA Investing LLC grew its position in shares of Williams-Sonoma by 1.8% in the second quarter. GAMMA Investing LLC now owns 3,972 shares of the specialty retailer’s stock valued at $926,000 after purchasing an additional 71 shares during the last quarter. Finally, Eastern Bank increased its stake in shares of Williams-Sonoma by 10.6% during the third quarter. Eastern Bank now owns 752 shares of the specialty retailer’s stock worth $171,000 after purchasing an additional 72 shares during the period. Institutional investors and hedge funds own 99.29% of the company’s stock.

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Williams-Sonoma, Inc is an omnichannel specialty retailer focused on home furnishings, décor, kitchenware and related lifestyle products. The company operates a portfolio of brands that includes Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home and Mark & Graham.

Its products include cookware, cutlery, appliances, tabletop goods, furniture, bedding, bath products, lighting, rugs, textiles, decorative accessories, gifts and personalized items.

Further Reading Five stocks we like better than Williams-Sonoma Rocket Lab’s Neutron Delay Leaves Wall Street Bullish But Raises the Stakes for 2027 ManpowerGroup Stock Sinks on Q3 Results, But Fundamentals Stay Solid Does the AI Selloff Put Alphabet’s Breakout in Doubt? Bank Earnings Are Mixed—These 2 ETFs Offer Very Different Paths to a Recovery Receive News & Ratings for Williams-Sonoma Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Williams-Sonoma and related companies with MarketBeat.com's FREE daily email newsletter.

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The Exclusive Collection Pairs Elevated Materials and Fashion-Inspired Details with Pieces Designed for Everyday Living

SAN FRANCISCO--(BUSINESS WIRE)--Pottery Barn, a portfolio brand of Williams-Sonoma, Inc. (NYSE: WSM), the world’s largest digital-first, design-led, and sustainable home retailer, announced today a new collaboration with New York City-based interior designer, social media influencer, and entrepreneur Ashley Stark. Drawing on generations of industry expertise, the renowned tastemaker collaborated with Pottery Barn to bring her rich design heritage and signature aesthetic to an assortment rooted in effortless elegance and timeless craftsmanship.

Inspired by Stark’s distinctive mix of rich materiality and statement pieces, the new Ashley Stark for Pottery Barn collection features refined silhouettes, tactile fabrics, and mixed-material finishes that come together in elevated pieces designed for everyday living. Across upholstery, occasional furniture, lighting, entertaining, barware, and decorative accents, the assortment of more than 50 pieces reflects a shared commitment to quality craftsmanship, enduring design, and spaces that feel beautiful, functional, and true to Stark’s fashion-forward approach to interiors.

“Ashley is a trusted tastemaker whose approach to design is shaped by both her family’s design legacy and her own distinctive eye for beautifully layered interiors,” said Jennifer Kellor, President of Pottery Barn. “This collaboration reflects our shared belief that great design is built on quality, thoughtful details, and pieces that become part of the way people live and entertain.”

Emphasizing texture and materials, the collection layers polished marble, warm brass, dark wood, and rich chenille. Thoughtful elements, like chain-link accents as well as ruffled, tufted, and ruched detailing, add dimension throughout the collection.

“Home is the center of your life, and I think it should be beautiful,” said Ashley Stark. “My collection with Pottery Barn is a pure reflection of my aesthetic, with sophisticated neutrals, lots of great textures, and truly the best materials. Partnering with Pottery Barn has been an absolute dream.”

The Ashley Stark for Pottery Barn collection is now available to shop exclusively at potterybarn.com. Follow along on social media for styling tips and inspiration @potterybarn and @ashleytstark.

ABOUT POTTERY BARN:

Pottery Barn, a member of the Williams-Sonoma, Inc. (NYSE: WSM) portfolio of brands, is a premier specialty retailer for casual, comfortable and stylish home furnishings. The brand is dedicated to beautiful ideas for real life, quality products that are crafted to last, sustainability, and service. Key product categories include furniture, bedding, bath, rugs, window treatments, tabletop, lighting, and decorative accessories. Nearly all Pottery Barn products are designed in-house and are exclusive to its catalogs, stores and website. Pottery Barn is also part of The Key Rewards, a free-to-join loyalty program that offers members exclusive benefits across the Williams-Sonoma family of brands, the world’s largest digital-first, design-led and sustainable home retailer. The company is headquartered in San Francisco, California.

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 ASHLEY STARK

Ashley Stark is a design influencer, creative director of STARK, and the stylish namesake behind Ashley Stark Home. At an early age, she fell in love with the legendary carpet and textile company founded by her grandparents, which led her to a life immersed in design, honing her eye, sharpening her sense of quality, and developing her inimitable style. Raised in New York City, Ashley has always felt that design is in her blood. Ashley laid a strong foundation with her first love: rugs. She leaned into her irreverent design style and deep knowledge of craftsmanship to turn out a versatile, works-anywhere collection that is as unique as she is. It’s a collection that skillfully juxtaposes unexpected touches with classic elements that feel right in any setting, from a chic coastal retreat to an urban aerie or mountain town escape—and it couldn’t have come from anyone but Ashley. Then she applied her eye and curated a mix of fabulous goods to go with the rugs—tabletop, lighting, decorative objects, wallcoverings—all the vitals for making a room uniquely yours.

WSM-PR

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In the latest trading session, Williams-Sonoma (WSM - Free Report) closed at $241.78, marking a +1.16% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.6%. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 0.64%.

The seller of cookware and home furnishings's shares have seen an increase of 6.82% over the last month, surpassing the Retail-Wholesale sector's loss of 1.58% and the S&P 500's gain of 1.34%.

The investment community will be closely monitoring the performance of Williams-Sonoma in its forthcoming earnings report. The company is expected to report EPS of $2.16, up 10.2% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.98 billion, up 5.39% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.51 per share and a revenue of $8.23 billion, signifying shifts of +7.58% and +5.46%, respectively, from the last year.

Any recent changes to analyst estimates for Williams-Sonoma should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.25% increase. Williams-Sonoma is currently a Zacks Rank #3 (Hold).

From a valuation perspective, Williams-Sonoma is currently exchanging hands at a Forward P/E ratio of 25.14. This indicates a premium in contrast to its industry's Forward P/E of 16.57.

Also, we should mention that WSM has a PEG ratio of 2.59. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Home Furnishings was holding an average PEG ratio of 1.48 at yesterday's closing price.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 109, putting it in the top 45% 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.

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

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

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

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

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

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

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

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

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

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

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

12 Month EPS

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

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

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

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

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

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

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

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

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

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

Investors looking for stocks in the Retail - Home Furnishings sector might want to consider either Alliance Laundry Holdings (ALH) or Williams-Sonoma (WSM). But which of these two stocks offers value investors a better bang for their buck right now?

Renowned Antiques Dealer Shane Brown Designs Exclusive Collection of Heritage-Inspired Home Furnishings

SAN FRANCISCO--(BUSINESS WIRE)--Pottery Barn, a portfolio brand of Williams-Sonoma, Inc. (NYSE: WSM), the world’s largest digital-first, design-led, and sustainable home retailer, announced today an exclusive collaboration with Big Daddy’s Antiques, the popular antique dealer and design destination known for its curated mix of vintage furniture, architectural salvage, found objects, and one-of-a-kind pieces. For more than thirty years, Big Daddy’s Antiques has been a destination for designers, collectors, and tastemakers seeking distinctive antiques, custom furniture, and garden décor. The new Big Daddy’s Antiques for Pottery Barn collection brings the spirit of discovery and the beauty of storied design into a thoughtfully crafted assortment for the home.

Inspired by Big Daddy’s Antiques' signature ability to source pieces with history, scale, and soul, the new home furnishings collection features furniture, lighting, decorative accessories, and entertaining pieces designed to feel collected over time. Each piece reflects Pottery Barn’s commitment to quality, craftsmanship, and timeless design while capturing the warmth, patina, and individuality that have made Big Daddy’s Antiques a beloved resource for years.

“Our customers are looking for pieces that make their homes feel personal, layered, and distinctly their own,” said Jennifer Kellor, President, Pottery Barn. “Shane Brown has spent decades cultivating an extraordinary point of view rooted in history, craftsmanship, and authenticity. Together, we have created a collection that translates Shane's signature design perspective into pieces that feel collected over time.”

Drawing inspiration from antiques markets, architectural salvage yards, and vintage stores with historical craftsmanship, the collection reinterprets antique silhouettes for today's home. The assortment includes a dining table, dining chairs, buffet, console, coffee table, dresser, nightstand, leather-upholstered bed and coordinating bench, alongside vintage-inspired lighting with milk glass details, an aged brass wine bucket, cheese serving pieces, gilt picture frames, and sculptural stone decorative objects. Rich wood finishes, natural textures, and layered materials evoke the warmth, character, and authenticity of a home thoughtfully collected over time.

“My work often begins with discovery — finding a piece in a European market and considering the history it carries, and the stories reflected in every detail,” said Shane Brown, founder and CEO of Big Daddy’s Antiques. “Working with Pottery Barn offered an opportunity to bring that same appreciation for heritage, craftsmanship, and character into more homes.”

The Big Daddy’s Antiques for Pottery Barn collection is available online and in select stores. For more information, please visit potterybarn.com and follow along on social @potterybarn and @bigdaddysantiques.

ABOUT POTTERY BARN

Pottery Barn is a portfolio brand of Williams-Sonoma, Inc. (NYSE: WSM), the world’s largest digital-first, design-led, and sustainable home retailer. The brand offers expertly crafted furniture, bedding, lighting, rugs, window treatments, tabletop, decorative accessories and outdoor collections that help customers create homes designed for the way they live. Pottery Barn products are available online and at company-operated stores throughout North America and internationally through global franchise partners. For more information, visit www.potterybarn.com.

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 BIG DADDY’S ANTIQUES

Founded by Shane Brown, Big Daddy's Antiques has spent more than three decades sourcing exceptional antiques, architectural elements, custom furniture and garden décor from around the world. Known for its distinctive California aesthetic and loyal following among leading designers, collectors and celebrity clientele, Big Daddy's Antiques is celebrated for creating interiors that layer history, craftsmanship and character into timeless, livable spaces. In 2026, Big Daddy's relocated from Los Angeles to Carpinteria, CA, alongside the launch of The Well Gardens, Brown's expanded lifestyle destination anchored by his indoor-outdoor home and garden concept, The Well.

WSM-PR

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Williams-Sonoma is outperforming the home furnishing industry and broader market. The company is increasingly able to sell products with minimal discounting, grow business-to-business sales and integrate AI to grow its market share.

Williams-Sonoma, Inc. (NYSE:WSM – Get Free Report) CFO Jeffrey Howie sold 3,045 shares of Williams-Sonoma stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $220.61, for a total transaction of $671,757.45. Following the transaction, the chief financial officer directly owned 34,138 shares of the company’s stock, valued at $7,531,184.18. This represents a 8.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

NYSE:WSM opened at $224.08 on Friday. The firm has a market cap of $26.39 billion, a PE ratio of 22.94, a price-to-earnings-growth ratio of 2.43 and a beta of 1.47. Williams-Sonoma, Inc. has a 12 month low of $165.51 and a 12 month high of $254.89. The company’s 50-day moving average price is $232.18 and its two-hundred day moving average price is $209.84.

Williams-Sonoma (NYSE:WSM – Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The specialty retailer reported $2.10 earnings per share for the quarter, topping the consensus estimate of $2.08 by $0.02. The company had revenue of $1.96 billion during the quarter, compared to analyst estimates of $1.93 billion. Williams-Sonoma had a net margin of 14.73% and a return on equity of 53.48%. The company’s revenue was up 6.7% on a year-over-year basis. During the same quarter last year, the business posted $2.00 earnings per share. On average, research analysts expect that Williams-Sonoma, Inc. will post 9.51 EPS for the current fiscal year.

Williams-Sonoma Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 20th. Shareholders of record on Friday, October 16th will be given a $0.76 dividend. The ex-dividend date is Friday, October 16th. This represents a $3.04 annualized dividend and a yield of 1.4%. Williams-Sonoma’s payout ratio is presently 31.12%. Key Williams-Sonoma News Here are the key news stories impacting Williams-Sonoma this week:

Positive Sentiment: Rejuvenation, Williams-Sonoma’s lighting and home-furnishings brand, opened a new store in Dallas—its second Texas location. The expansion increases the brand’s physical retail presence and could support longer-term sales and customer awareness. Rejuvenation Opens New Store in Dallas Positive Sentiment: Williams-Sonoma declared a quarterly dividend of $0.76 per share, payable November 20 to shareholders of record October 16. The unchanged payout equates to $3.04 annually and a yield of roughly 1.4%, reinforcing shareholder returns and signaling continued cash-flow confidence. Williams-Sonoma Quarterly Dividend Neutral Sentiment: A recent investor-focused article has put the Williams-Sonoma story on the radar, potentially increasing attention around the stock. However, the headline alone does not identify a new earnings, guidance, or strategic catalyst. What Put the Williams-Sonoma Story on the Radar? Negative Sentiment: CEO Laura Alber sold 35,000 shares worth approximately $7.74 million, while CFO Jeffrey Howie sold 3,045 shares worth about $672,000. The sales reduce their individual holdings and can pressure sentiment, although both transactions were made under pre-arranged Rule 10b5-1 plans and do not necessarily indicate deteriorating operating expectations. CEO Insider Sale Filing Analyst Ratings Changes Several brokerages have recently commented on WSM. Bank of America restated a “buy” rating and set a $261.00 target price (up from $250.00) on shares of Williams-Sonoma in a report on Monday, August 24th. Piper Sandler began coverage on shares of Williams-Sonoma in a research report on Monday, July 27th. They set an “overweight” rating and a $253.00 price target on the stock. Citigroup increased their price objective on shares of Williams-Sonoma from $248.00 to $252.00 and gave the stock a “neutral” rating in a report on Thursday, August 27th. KeyCorp restated an “overweight” rating and issued a $270.00 price objective (up from $250.00) on shares of Williams-Sonoma in a research report on Thursday, August 27th. Finally, Wells Fargo & Company boosted their target price on shares of Williams-Sonoma from $190.00 to $240.00 and gave the stock an “equal weight” rating in a research note on Tuesday, August 11th. Ten analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $245.56.

Check Out Our Latest Stock Report on WSM

Institutional Trading of Williams-Sonoma Institutional investors and hedge funds have recently modified their holdings of the stock. IMG Wealth Management Inc. acquired a new stake in shares of Williams-Sonoma in the 2nd quarter valued at approximately $31,000. Meeder Asset Management Inc. acquired a new position in Williams-Sonoma during the second quarter valued at approximately $35,000. Ballast Advisors LLC bought a new stake in Williams-Sonoma in the first quarter valued at approximately $30,000. MidFirst Bank bought a new stake in Williams-Sonoma in the fourth quarter valued at approximately $30,000. Finally, Millstone Evans Group LLC raised its holdings in Williams-Sonoma by 229.4% in the first quarter. Millstone Evans Group LLC now owns 168 shares of the specialty retailer’s stock worth $31,000 after purchasing an additional 117 shares during the period. 99.29% of the stock is owned by institutional investors.

Williams-Sonoma Company Profile (Get Free Report)

Williams-Sonoma, Inc is a specialty retailer focused on high-quality home furnishings, housewares and lifestyle products. The company sells furniture, bedding, bath goods, lighting, rugs, window treatments, home décor, kitchen equipment, cookware, tabletop products, outdoor furnishings and related accessories through e-commerce platforms, catalogs and retail stores.

The company operates a portfolio of brands that includes Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Mark & Graham and Rejuvenation.

Further Reading Five stocks we like better than Williams-Sonoma Lennar’s Earnings Miss May Be Sending a Bigger Warning About U.S. Housing Priced for a Pullback or More Gains? These 3 Stocks Are Testing the Limits These 3 Agentic AI Stocks Have More Than Hype Behind Their Growth Stories Not Just Banks: 3 Trading Stocks to Watch After the Fed Rate Hike

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PORTLAND, Ore.--(BUSINESS WIRE)--Rejuvenation, a portfolio brand of Williams-Sonoma, Inc. (NYSE: WSM), the world's largest digital-first, design-led and sustainable home retailer, announced today, the opening of the brand's new retail store in Dallas, Texas. Located in Inwood Village, the new 7,000-square-foot space will showcase Rejuvenation's signature assortment of lighting, hardware, bath collections, furniture, textiles, mirrors, and one-of-a-kind vintage finds. The new Rejuvenation Dallas.

SAN FRANCISCO--(BUSINESS WIRE)--Williams-Sonoma, Inc. (NYSE: WSM) announced today that its Board of Directors has declared a quarterly cash dividend of $0.76 per share of common stock. Each stockholder of record as of the close of business on October 16, 2026 will be paid the cash dividend on November 20, 2026. ABOUT WILLIAMS-SONOMA, INC. Williams-Sonoma, Inc. is the world's largest digital-first, design-led and sustainable home retailer. The company's brands — Williams Sonoma, Pottery Barn, Po.

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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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 >>>> .

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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.