Williams-Sonoma (WSM) Q2 2026 Earnings
GAAP EPS of $2.84 includes net tariff refund income: $167.8M IEEPA tariff refund (reduction to COGS), partially offset by $47.5M vendor concession reimbursements, $10.0M one-time employee 401(k) contribution, and $6.3M tariff refund interest income. These items added a net $0.74 per diluted share to GAAP EPS.
How Did WSM Stock React to Q2 2026 Earnings?
S&P 500 over the same 30 days: −0.06%.
Did WSM Beat Earnings? Q2 2026 Results
Yes. Williams-Sonoma reported Q2 2026 earnings of $2.10 a share on Aug 26, 2026, beating the $2.06 consensus estimate by 2.0%. Revenue was $2.0B against a $1.9B estimate.
Williams-Sonoma posted a clean beat across the board in its fiscal second quarter of 2026, with adjusted diluted EPS of $2.10 edging past the $2.06 consensus estimate by roughly 2% and total net revenues of $1.96 billion coming in ahead of the $1.93 billion Wall Street expected, up 6.7% year-over-year. The headline results were driven by broad-based brand momentum, with comparable brand revenue rising 6.2% as all five segments contributed positively; West Elm grew comps 6.4%, the Williams-Sonoma nameplate climbed 7.6%, and the flagship Pottery Barn brand added 5.1% on $770.81 million in revenue. Notably, a $167.80 million IEEPA tariff refund boosted GAAP EPS to $2.84 but was excluded from adjusted figures, which instead reflected 230 basis points of tariff-driven merchandise margin compression that weighed on the 17.3% non-GAAP operating margin. Institutional investors have taken notice, with multiple new positions initiated around the print. Management raised its full-year 2026 outlook, now targeting net revenue growth of 4.7% to 7.2% and a non-GAAP operating margin of 17.8% to 18.2%, with guidance conservatively assuming all current tariffs remain in place and no further refund benefit.
- Comparable brand revenue growth of 6.2% across all brands
- Strong execution across brands and channels
- Employment expense leverage of 120 basis points on non-GAAP basis
- Supply chain efficiencies contributing 30 basis points to gross margin
- Occupancy leverage of 40 basis points
- Market share gains outperforming the industry
“We delivered a very strong second quarter. In Q2, our comp came in at 6.2%, with total revenue growth of 6.7%, and we drove an operating margin of 17.3% with earnings per share of $2.10. Every brand delivered again in the quarter, driven by strong execution across our brands, our channels, and our team.”
Williams-Sonoma CEO, on the earnings call
What Is Williams-Sonoma's Outlook?
Williams-Sonoma raised its fiscal 2026 guidance. The company now expects annual net revenue growth of +4.7% to +7.2%, with comparable brand revenue growth of +4.0% to +6.5%, and non-GAAP operating margin between 17.8% and 18.2%. Guidance assumes all current tariffs remain in place (including Section 232, existing and new Section 301, and Canada-US tariffs), elevated oil prices for the remainder of the year, and no benefit from tariff refunds or related interest. Annual non-GAAP interest income is expected at approximately $25 million with an effective tax rate of approximately 26%. Over the long term, the company expects mid-to-high single-digit annual net revenue growth with an operating margin in the mid-to-high teens.
WSM YoY Financials
| Metric | Q2 2026 | Q2 2025 | Year over year |
|---|---|---|---|
| Revenue | $2.0B | $1.8B | +6.7% |
| Gross Profit | $1.0B | $864.6M | +17.0% |
| Operating Income | $448.8M | $328.1M | +36.8% |
| Net Income | $338.1M | $247.6M | +36.6% |
WSM Revenue by Segment
When Does Williams-Sonoma Report Next?
Figures from SEC filings and company reports. Not investment advice.