Williams-Sonoma reported fiscal second-quarter revenue of $1.96 billion, topping expectations, while earnings per share reached $2.10, also exceeding forecasts. Same-store sales rose 6.2%, outpacing Gordon Haskett’s estimate of 3.6% and the consensus forecast of 4.6%. Operating margin, excluding tariff refunds, came in at 17.3%, beating both the firm’s 16.4% estimate and the 17.0% consensus.
The home retailer’s business-to-business segment grew 14.5% year-over-year in the quarter, while two-year stacked sales growth accelerated by approximately 170 basis points. Analysts noted the outperformance was broad-based across all four banners, supporting the company’s position at the top of Gordon Haskett’s home vertical rankings.
Gordon Haskett maintained a Buy rating on Williams-Sonoma with a $260 price target, based on roughly 24 times its fiscal 2027 earnings per share estimate of $10.75. Both Telsey and Jefferies raised their price targets following the earnings release. The firm also raised its fiscal 2026 same-store sales guidance to a range of 4.0%–6.5%, up from 2.0%–6.0%, and lifted operating margin guidance to 17.8%–18.2% from 17.5%–18.1%.
For fiscal 2027, Williams-Sonoma expects new unit growth to accelerate to 1.0%–3.0%, with earnings per share projected to rise 10%–15% as tariff-related pressures lap. Analysts cited the company’s exposure to middle-to-upper income customers, a diversified brand portfolio, and healthy trends in emerging concepts such as Rejuvenation as key supports for its outlook.
