Williams-Sonoma Inc. is poised to report second-quarter earnings on Wednesday before the market opens, with analysts forecasting a 3% year-over-year increase in earnings per share to $2.06. Revenue is projected to rise 4.35% to $1.92 billion, up from $1.81 billion in the same period last year, when the company beat earnings expectations by 6.63%.
The San Francisco-based home furnishings retailer has seen its stock price trade at $237.77, near its 52-week high of $254.89, as analysts have raised price targets in recent weeks. The mean target among analysts stands at $231.80, with BofA Securities lifting its forecast to $261 on Monday. Several firms, including Baird, RBC Capital, Goldman Sachs, and Telsey Advisory Group, have also increased their targets this month, with some adopting forward earnings multiples of 25x.
Comparable sales growth is expected to range between 4% and 5%, supported by strong performance at West Elm, which has benefited from designer collaborations with Pierce & Ward and Emma Chamberlain. The Williams-Sonoma brand remains steady, while Pottery Barn Kids is seeing seasonal strength ahead of the back-to-school period.
Tariff costs are anticipated to peak in the second quarter, a concern that Williams-Sonoma has addressed by filing for $198 million in tariff refunds—equivalent to more than $1 per share. Management has not included these refunds in its guidance, leaving analysts to assess the net impact on profitability. The company's market valuation stands at $28 billion.
