Williams-Sonoma reported 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, while net revenues rose 6.7% to $1.96 billion, beating the consensus of $1.91 billion. Despite the beat, shares fell about 5% as non-GAAP gross margin contracted 160 basis points to 45.5%, pressured by tariff-related costs, and the company's outlook assumes current tariffs and elevated oil prices persist. Comparable brand revenues increased 6.2%, with Pottery Barn generating $770.8 million, West Elm $496.3 million, Williams Sonoma $268.8 million, and Pottery Barn Kids and Teen $297.4 million. The company raised its fiscal 2026 guidance, now expecting net revenue growth of 4.7% to 7.2% and non-GAAP operating margin between 17.8% and 18.2%.
Williams-Sonoma IncGross margin contracted 160 bps due to tariff-related costs, pressuring profitability despite earnings beat.
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