Williams-Sonoma Outperforms RH on Margins, but RH's Growth Outlook May Make It the Better Buy

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Summary · why it matters

Williams-Sonoma has outperformed RH in converting revenue to profit amid a tough home-goods market, but analysts see stronger earnings growth ahead for RH. Williams-Sonoma posted a net income margin of about 13% for the quarter ended May 3, 2026, while RH reported an EBIT margin of roughly 4% for the quarter ended May 2, 2026. Williams-Sonoma's comparable store sales grew 4.8% year over year last quarter, and its quarterly revenue has ranged from $1.7 billion to $2.5 billion over the past two years, compared with RH's range of $800.3 million to $899.2 million. RH expects full-year revenue growth of 4.5% to 8% and an adjusted EBITDA margin in the mid-teens, and analysts forecast annualized earnings growth of about 16% over the next two years versus 7% for Williams-Sonoma. Both stocks trade at a forward price-to-earnings multiple of about 24, but RH's higher projected growth and international expansion could make it the better buy.

Impact on stocks 2

Consumer Discretionary± Mixed · 2 stocks
RH
RH
▲ PositiveDemandrelevance

Analysts see stronger earnings growth ahead for RH, with projected annualized earnings growth of 16% vs 7% for Williams-Sonoma, and RH expects full-year revenue growth of 4.5% to 8%.

Williams-Sonoma Inc
WSM
▼ NegativeCapitalrelevance

Williams-Sonoma has lower projected earnings growth (7% vs 16% for RH) and is considered less attractive on growth outlook, despite higher current margins.