Williams-Sonoma IncWSM
▲ PositiveCapitalrelevance
Raises full-year outlook and reports strong Q2 results.
Impact on stocks 1
Consumer Discretionary
Williams-Sonoma IncWilliams-Sonoma reported accelerating second-quarter fiscal 2026 sales growth and raised its full-year revenue and operating-margin outlook, citing market-share gains in a flat home furnishings industry. Comparable brand revenue rose 6.2%, accelerating from 4.8% in the first quarter, while net revenue increased 6.7% to $1.96 billion, with every brand posting positive comparable sales and B2B revenue growing 14.5%. Gross margin fell 160 basis points to 45.5% due to tariffs, but the company received $200 million in tariff refunds, resulting in a net $117 million benefit to GAAP pretax results. Management expects tariff pressure to moderate in the second half. The company now expects comparable revenue growth of 4% to 6.5%, total revenue growth of 4.7% to 7.2%, and an operating margin of 17.8% to 18.2%. CEO Laura Alber highlighted strong performance across brands, with Pottery Barn comparable sales up 5.1%, Williams Sonoma up 7.6%, West Elm up 6.4%, and Pottery Barn kids up 3.5%. The company also noted that its AI shopping assistant Olive saw engagement rise 700% and revenue associated with it increase 620%.
Williams-Sonoma IncRaises full-year outlook and reports strong Q2 results.