Williams-Sonoma, Inc. (WSM) Earnings
Williams-Sonoma, Inc. is expected to report next earnings on November 18, 2026 (in NaN days), with a consensus EPS estimate of $2.15. WSM has beaten EPS estimates in 11 of its last 12 reported quarters (average surprise +19.1% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 26, 2026 | $2.08 | $2.10 | +1.0% | $2.0B | +1.9% |
| May 21, 2026 | $1.81 | $1.93 | +6.6% | $1.8B | +0.6% |
| Mar 18, 2026 | $1.84 | $3.04 | +64.9% | $2.4B | +28.3% |
| Nov 19, 2025 | $1.89 | $1.96 | +4.0% | $1.9B | +0.9% |
| Aug 27, 2025 | $1.81 | $2.00 | +10.4% | $1.8B | +0.5% |
| May 22, 2025 | $1.77 | $1.85 | +4.3% | $1.7B | +3.8% |
| Mar 19, 2025 | $2.94 | $3.28 | +11.5% | $2.5B | +4.9% |
| Nov 20, 2024 | $1.77 | $1.96 | +11.0% | $1.8B | +1.3% |
| Aug 22, 2024 | $1.60 | $1.74 | +8.7% | $1.8B | -0.8% |
| May 22, 2024 | $2.71 | $2.04 | -24.7% | $1.7B | +0.7% |
| Mar 13, 2024 | $2.53 | $2.72 | +7.6% | $2.3B | +2.1% |
| Nov 16, 2023 | $1.67 | $1.83 | +9.5% | $1.9B | -16.5% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 26, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- **Strategic Execution**: Broad-based growth across all brands, channels (DTC +6.5%, Retail +5.5%), and categories (furniture and non-furniture). The company gained market share in a flat industry without relying on discounting. - **Product Innovation & Collaborations**: Success driven by high-quality newness, exclusive collaborations (e.g., Emma Chamberlain at West Elm, Hill House Home at Williams Sonoma), and compelling storytelling. Collaborations act as traffic drivers and acquisition tools, particularly for younger demographics. - **Technology & AI Integration**: Launch of 'Otto' for Pottery Barn family and expansion of 'Oliver' for Williams Sonoma. These AI-powered assistants drive engagement (up 700% for Oliver) and conversion (3x higher rate for users). Personalization now generates ~9x the revenue of an average visit. - **Supply Chain & Logistics**: Mitigated rising fuel and supply chain costs through efficiency gains (offsetting ~70 bps of margin pressure). Shrink accrual benefits from last year continue to support margins. - **Customer Experience**: Enhanced digital discovery, improved photography using AI, and strengthened in-store design services. Focus on full-price selling remains a key differentiator. - **Financial Discipline**: Maintained profitability despite peak tariff impacts. Operating margin reached 17.3% with EPS of $2.10.
Guidance
- **Raised Annual Outlook**: Management raised guidance for both top and bottom lines for Fiscal 2026. - **Revenue Growth**: Comparable brand revenue growth is now expected to be 4% to 6.5% (previously 2% to 6%). Total net revenue growth is projected at 4.7% to 7.2%. - **Operating Margin**: Expected operating margin is raised to 17.8% to 18.2% (previously lower range). - **Capital Expenditures**: Unchanged at approximately $275 million for the year. - **Store Count**: Year-end store count expected to be essentially flat; 1% to 3% annual growth anticipated starting in Fiscal 2027. - **Dividends & Buybacks**: Quarterly dividend maintained at $0.76 per share (15% YoY increase); continued opportunistic share repurchases against $1.1 billion authorization. - **Long-Term Outlook**: Reiterated mid-to-high single-digit revenue growth and operating margins in the mid-to-high teens.
Segment performance
Total revenue was $1.96 billion, up 6.7% year-over-year. Comparable brand revenue accelerated to 6.2%. Performance by segment: - Pottery Barn: Comp of 5.1%, showing significant improvement and acceleration. - Williams Sonoma: Comp of 7.6%, driven by strong assortment across categories and price points. - West Elm: Comp of 6.4%, fueled by double-digit comp growth in new furniture and non-furniture introductions. - Children’s Business (Pottery Barn Kids): Comp of 3.5%, supported by product innovation and collaborations. - Emerging Brands: Delivered double-digit comps. Rejuvenation saw record levels in cabinet hardware, bath, and lighting. Mark & Graham and GreenRow also posted double-digit growth. - B2B: Grew 14.5% with record-breaking demand, driven by strength in both contract (up 20%) and trade (up 12%) segments.
Risks & headwinds
- **Macroeconomic Volatility**: Ongoing uncertainty regarding interest rates, stagnant housing market, and broader economic conditions. - **Tariff Impact**: Q2 represented the peak of tariff-related cost pressures on gross margin; while mitigated by refunds, future tariff policies remain a variable. - **Oil Prices**: Rising fuel prices continue to exert pressure on transportation and supplier costs, embedded in current guidance. - **Inventory Management**: Need to carefully manage inventory levels to chase best-sellers while maintaining quality and avoiding excess stock.
Analyst Q&A
Q: Kate McShane (Goldman Sachs) asked about the pipeline of innovation and collaborations for H2, specifically regarding holiday offerings compared to last year. /
A: Laura Alber emphasized that every brand is continuously improving product quality and pricing vs. competitors. She noted significant opportunities to improve in specific categories where performance lagged. Exciting collaborations are scheduled for each season, leveraging long-standing partners who consistently outperform. Newness drives core product lift, creating a "layer cake" effect where trends build over years rather than fading like fashion.
Q: Peter Benedict (Baird) sought details on the acceleration at Pottery Barn, particularly in DTC. /
A: Alber attributed the improvement to enhanced product discovery, storytelling, and photographic layers (including AI-enhanced imagery). Furniture category improvements were driven by authentic materials and quirky decor. New store openings and remodels are performing well. Collaborations like Kravitz Design are generating significant social buzz and sales. The brand is returning to its heritage aesthetic while modernizing the digital experience.
Q: An analyst (Baird) requested the puts and takes behind the raised operating margin guidance. /
A: Jeffrey Howie explained that Q2 was the peak tariff impact, which will moderate in H2 as prior-year tariffs lapse. However, higher oil/fuel costs are embedded in guidance, partially offsetting tariff benefits. A shrink benefit from last year will lapse in Q3/Q4. Crucially, the raise is purely operational, excluding any one-time IEPA refund benefits.
Q: Michael Lasser (UBS) asked if gross margin degradation is expected in H2 and how margins might expand in FY27. /
A: Alber stated there is significant runway for margin expansion via supply chain efficiencies, AI in service, and improved inventory accuracy. Reducing promotional selling has already helped. For H2, Howie noted the midpoint of the raised guide is slightly above last year's back-half margin, implying stability despite tariff normalization and fuel costs.
Q: Max Rakhlenko (TD Cowen) asked about B2B growth targets, specifically the path to $2 billion in revenue and breakdown between contract and trade. /
A: Howie confirmed B2B grew 14.5% overall, with Contract up 20% and Trade up 12%. Contract accounts for 36% of B2B revenue but is the primary focus. The team sees a clear path to $2 billion over the next several years by capturing share in the fragmented $80 billion market across sectors like hotels, multifamily, and education.