The strong Q1 beat (+4.8% comp, EPS 7.2% above consensus) with reaffirmed guidance suggests the company is executing well despite tariff headwinds and a contracting gross margin. The accelerated comp from 3.4% to 4.8% is the key positive. Monitor for consumer spending trends in home furnishings and tariff flow-through in H2, as guidance assumes no tariff refunds.
Price Chart
Executive Summary
Williams-Sonoma reported Q1 FY2026 results with net revenue of $1.805B (up 4.4% YoY) and diluted EPS of $1.93 (up 4.3% YoY), accelerating comparable brand revenue growth to +4.8% vs +3.4% a year ago. The company reiterated its full-year FY2026 guidance for revenue growth of +2.7% to +6.7% and operating margin of 17.5% to 18.1%. Operating margin contracted 60bps YoY to 16.2%.
Key Financial Metrics
Key Facts
- Q1 FY2026 comparable brand revenue grew +4.8% YoY, accelerating from +3.4% in the prior year quarter
- Diluted EPS of $1.93 beat consensus estimate of $1.80 by 7.2%
- Net revenue of $1.805B was in line with consensus estimate of $1.80B
- Every brand delivered a positive comp in Q1: Pottery Barn +1.0%, West Elm +8.5%, Williams Sonoma +5.0%, Pottery Barn Kids & Teen +4.5%
- Q1 operating margin contracted 60bps YoY to 16.2%, driven by 30bps gross margin compression and 30bps SGA deleverage
- Company reiterated FY2026 guidance for annual net revenue growth of +2.7% to +6.7%, comps of +2.0% to +6.0%, and operating margin of 17.5% to 18.1%
- Operating cash flow of $156M; deployed $288M in share repurchases and $85M in dividends during Q1
- Cash balance declined to $652M from $1.02B at year-end due to $288M in buybacks and $94M in tax withholdings
Financial Impact
Revenue $1.805B (consensus $1.80B), Diluted EPS $1.93 (consensus $1.80 — beat by $0.13 or +7.2%), Operating income $292M, Operating margin 16.2% (down 60bps YoY)
Risk Factors
- Gross margin compressed 30bps YoY to 44.0% with lower merchandise margins of -100bps partially offset by supply chain efficiencies
- Tariff costs front-loaded in H1 with incremental tariff cost of ~$60M; no refunds assumed in guidance
- Cash & equivalents declined by $368M to $652M due to aggressive buybacks ($288M) and other financing uses
- Reiterated guidance provides no upside surprise catalyst; stock may have limited near-term upside from current levels
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000719955-26-000126 |
| Document: wsm-20260521.htm | 0000719955-26-000126 |
| Document: 0000719955-26-000126-index-headers.html | 0000719955-26-000126 |
| Document: 0000719955-26-000126-index.html | 0000719955-26-000126 |
| Document: 0000719955-26-000126.txt | 0000719955-26-000126 |
| 8-K Data (Synthetic) | 0000719955-26-000126 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 26, 2026 5w ago | 8-K | $237.43 $228.66 | ▼ −3.69% | ▼ −3.92% | $232.30 (−2.16%) |
Jun 11, 2026 16w ago | Institutional Cluster | $218.74 $219.77 | ▲ +0.47% | ▼ −1.42% | $232.30 (+6.20%) |
May 21, 2026 19w ago | 8-K | $190.57 $226.92 | ▲ +19.07% | ▲ +18.53% | $232.30 (+21.89%) |
May 6, 2026 21w ago | DEFA14A | $186.18 $207.11 | ▲ +11.24% | ▲ +8.46% | $232.30 (+24.77%) |
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