Williams-Sonoma Inc. reported adjusted earnings per share of $2.10 for the second quarter, exceeding the consensus estimate of $2.06, while revenue totaled $1.96 billion against expectations of $1.92 billion.
Net revenue grew 6.7% year-over-year, with comparable brand revenue up 6.2%. The company’s adjusted operating margin narrowed to 17.3% from 18.0% a year earlier, reflecting a 60-basis-point decline driven primarily by lower merchandise margins due to tariff costs, partially offset by supply chain efficiencies and occupancy leverage.
GAAP operating margin reached 22.9%, supported by $167.8 million in refunds from previously paid International Emergency Economic Powers Act tariffs, which were excluded from adjusted results.
Shares of Williams-Sonoma fell 4.6% in premarket trading following the release.
For the full fiscal year, the company raised its net revenue growth guidance to a range of 4.7% to 7.2%, with a midpoint of 5.95%, and projected comparable sales growth of 4.0% to 6.5%. Adjusted operating margin is now expected to land between 17.8% and 18.2%.
Management’s guidance assumes current tariffs, including Section 232 and Section 301 measures, as well as U.S.-Canada tariffs, will remain in place through fiscal 2026. Elevated oil prices are also expected to persist through year-end.
Laura Alber, president and chief executive officer, said the company delivered a strong quarter, citing a 6.2% comp increase, 6.7% total revenue growth, and an operating margin of 17.3% with earnings per share of $2.10.
