Williams-Sonoma reported second-quarter fiscal 2026 revenue of $1.96 billion and adjusted earnings per share of $2.10, beating expectations as same-store sales grew 6.2%, outpacing both its own forecast of 3.6% and the market consensus of 4.6%. The company’s operating margin, excluding tariff reimbursements, reached 17.3%, ahead of the brokerage’s estimate of 16.4% and the consensus of 17.0%. Over the two-year cumulative period, same-store sales accelerated by approximately 170 basis points across all four banners.
Gordon Haskett maintained its Buy rating and named Williams-Sonoma the top pick in the domestic sector, citing exposure to middle- to high-income consumers, a diversified business-to-business segment, and momentum in emerging brands such as Rejuvenation. The firm set a price target of $260, based on roughly 24 times its fiscal 2027 EPS estimate of $10.75.
The retailer’s business-to-business segment grew 14.5% year-over-year, contributing to a broader trend of resilient demand in the home goods market. Williams-Sonoma also raised its full-year 2026 guidance, lifting same-store sales growth to a range of 4.0% to 6.5% from 2.0% to 6.0% previously, and increasing its operating margin outlook to 17.8%–18.2% from 17.5%–18.1%.
Looking ahead to 2027, the company expects new unit growth to accelerate to 1.0%–3.0%, with projected EPS growth of 10% to 15% as it absorbs embedded tariff pressures. The stock closed at $234.74 on August 25, down 1.27%, and was at $234.53 in pre-market trading on August 26.
Following the results, both Telsey and Jefferies raised their price targets on Williams-Sonoma, citing consistent sales growth and margin performance as key drivers of the upgrades.
