Williams-Sonoma Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.64%.
Did WSM Beat Earnings? Q2 2026 Results
Williams-Sonoma delivered a convincing second quarter of fiscal 2025, posting diluted EPS of $2.00 against a consensus estimate of $1.81, a beat of 10.49%, while net revenue climbed 2.7% year over year to $1.84 billion, edging past the $1.83 billion Wall Street had anticipated. The standout driver was a broad-based comparable brand recovery, with all four brands posting positive comps for the first time in recent quarters, led by Pottery Barn Kids and Teen at 5.3% and Williams Sonoma at 5.1%, a sharp contrast to the negative comps most brands reported a year ago. Gross margin expanded 220 basis points to 47.1%, reflecting stronger merchandise margins and supply chain efficiencies that helped lift operating margin to 17.9%. <a href="https://247wallst.com/investing/2025/08/27/stock-market-live-august-27-sp-500-voo-flat-as-investors-await-nvidia-news/">Against a cautious market backdrop</a>, management raised its fiscal 2025 comparable revenue guidance to a range of +2.0% to +5.0%, while reiterating operating margin guidance of 17.4% to 17.8%, noting that incremental tariff costs on imports from China, India, and Vietnam remain a meaningful headwind to revenue flow-through.
- Positive comps in both furniture and non-furniture categories
- Strong performance across retail and e-commerce channels
- All brands running positive comparable brand revenue growth
- Higher merchandise margins expanding +190bps
- Supply chain efficiencies contributing +30bps to gross margin
- Lower advertising and general expenses reducing SG&A rate
“We are proud to deliver strong results in the second quarter of 2025, driving a comp of +3.7% with all brands again running positive comps. Additionally, we exceeded profitability estimates with an operating margin of 17.9% and earnings per share of $2.00 with earnings growth of nearly +20%. This growing outperformance was driven by positive comps in both furniture and non-furniture, and strong performance in our retail and ecommerce channels; and has allowed us to raise our guidance on the top-line and reiterate our guidance on the bottom-line, despite continued macroeconomic uncertainty and the tariff environment.”
Williams Sonoma CEO, on the earnings call
Forward Guidance & Outlook
Williams-Sonoma raised its fiscal 2025 net revenue guidance, now expecting annual net revenues in the range of +0.5% to +3.5% (inclusive of the 53rd-week impact from fiscal 2024), with comparable revenue in the range of +2.0% to +5.0%. Operating margin guidance was reiterated at 17.4% to 17.8% (with the 53rd week contributing 20bps in fiscal 2024). The company expects incremental tariff costs to pressure flow-through from higher revenues, including additional tariffs on China (30%), India (50%), Vietnam (20%), rest of world average (18%), and steel/aluminum/copper (50%). For fiscal 2025, annual interest income is expected to be approximately $30 million with an effective tax rate of approximately 26.5%. Over the long term, the company targets mid-to-high single-digit annual net revenue growth with mid-to-high teens operating margins.
WSM YoY Financials
WSM Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.