Williams-Sonoma IncWSM
▲ PositiveCapitalTariffrelevance
Raises FY2026 guidance and reports strong Q2 results with EPS up 5%.
Impact on stocks 1
Consumer Discretionary
Williams-Sonoma IncWilliams-Sonoma raised its full-year guidance after reporting strong second-quarter results, with comparable brand revenue growth accelerating to 6.2% from 4.8% in Q1 and total revenue up 6.7% to $1.96 billion. The company now expects comparable brand revenue growth of 4% to 6.5% and an operating margin of 17.8% to 18.2% for fiscal 2026. Diluted EPS rose 5% to $2.10, while gross margin declined 160 basis points to 45.5% due to tariff impacts, which also pressured merchandise margins down 230 basis points. All brands posted positive comps, including Pottery Barn at 5.1%, Williams-Sonoma at 7.6%, West Elm at 6.4%, and children's businesses at 3.5%, with B2B growing 14.5% on record demand. The company received $200 million in IEPA tariff refunds, recognizing $174 million into income, and paid $90 million in dividends, a 15% increase year-over-year.
Williams-Sonoma IncRaises FY2026 guidance and reports strong Q2 results with EPS up 5%.