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 of 4.6%. Operating margin, excluding tariff refunds, came in at 17.3%, beating both the firm’s 16.4% estimate and the consensus 17.0%.
The home furnishings retailer’s business-to-business segment expanded 14.5% year-over-year, with two-year stacked sales growth accelerating by approximately 170 basis points. Performance was described as broad-based across all four banners, supporting the firm’s ranking at the top of Gordon Haskett’s home vertical.
Gordon Haskett maintained its Buy rating on Williams-Sonoma and set a price target of $260, based on roughly 24 times its fiscal 2027 earnings per share estimate of $10.75. Following the results, Telsey and Jefferies raised their price targets on the stock.
For fiscal 2026, Williams-Sonoma raised its same-store sales guidance to a range of 4.0% to 6.5%, up from the prior 2.0% to 6.0%. Operating margin guidance was also lifted to 17.8% to 18.2%, from 17.5% to 18.1% previously. Gordon Haskett expects fiscal 2027 earnings per share growth of 10% to 15%, driven by accelerating new unit growth to 1.0% to 3.0% and the lapping of embedded tariff pressures.
Analysts cited Williams-Sonoma’s exposure to middle-to-upper income customers, a diversified brand portfolio, a growing B2B segment, and a promotion-light strategy as key factors underpinning its top ranking in the home vertical.
