Williams-Sonoma Inc. has been named the top pick in Gordon Haskett’s home vertical rankings following its second-quarter results, which exceeded expectations across key metrics. The retailer’s same-store sales growth of 6.2% surpassed both the firm’s estimate of 3.6% and the consensus forecast of 4.6%, while operating margins reached 17.3% excluding tariff refunds, outperforming estimates of 16.4% and the 17.0% consensus.
Revenue for the quarter totaled $1.96 billion, above projections, with earnings per share of $2.10 also exceeding expectations. The business-to-business segment grew 14.5% year-over-year, and all four banners contributed to the broad-based outperformance, with the two-year sales stack improving by approximately 170 basis points.
Gordon Haskett maintained a Buy rating on Williams-Sonoma with a price target of $260, based on roughly 24 times the firm’s fiscal 2027 earnings per share estimate of $10.75. The analyst firm also raised its guidance for the current fiscal year, lifting same-store sales growth expectations to a range of 4.0% to 6.5% from 2.0% to 6.0% previously, and increasing operating margin guidance to 17.8% to 18.2% from 17.5% to 18.1%.
The positive outlook is supported by the company’s exposure to middle-to-upper income customers, a strong brand portfolio, and healthy trends in emerging concepts such as Rejuvenation. Gordon Haskett projects 10% to 15% EPS growth in fiscal 2027, driven by accelerating new unit growth of 1.0% to 3.0% and the lapping of embedded tariff pressures.
Following the results, Telsey and Jefferies raised their price targets on Williams-Sonoma stock, reflecting the broader analyst sentiment toward the company’s performance.
