With a market cap of $25.7 billion, Williams-Sonoma, Inc. (WSM) is an omni-channel specialty retailer offering a wide range of high-quality home products, including cookware, furniture, décor, lighting, and personalized gifts. It operates multiple well-known brands such as Williams Sonoma, Pottery Barn, West Elm, and Rejuvenation through e-commerce platforms, catalogs, and retail stores.
The San Francisco, California-based company is set to announce its Q2 2026 results soon. Ahead of this event, analysts expect Williams-Sonoma to report an adjusted EPS of $2.03, a 1.5% rise from $2 in the year-ago quarter. It has exceeded Wall Street's earnings estimates in the last four quarters.
For fiscal 2026, analysts predict the seller of cookware and home furnishings to post an adjusted EPS of $9.39, up 6.2% from $8.84 in fiscal 2025. Moreover, adjusted EPS is anticipated to grow 9.2% year-over-year to $10.25 in fiscal 2027.
Shares of Williams-Sonoma have returned 22.5% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 16.6% gain and the State Street Consumer Discretionary Select Sector SPDR ETF's (XLY) 2.1% decrease over the period.
Shares of Williams-Sonoma rose 6.5% on May 21 after the company reported better-than-expected Q1 2026 revenue increasing 4.3% year-over-year to $1.81 billion and adjusted EPS came in at $1.93. The company also posted 12.8% growth in net income to $231.4 million and 4.8% comparable brand revenue growth, with all brands delivering year-over-year sales improvements.
Although management warned that higher fuel costs and tariffs could pressure margins and guided fiscal 2026 revenue to $8.02 billion - $8.33 billion with an operating margin of 17.5% - 18.1%, investors focused on the strong earnings beat and solid underlying operating performance.
Analysts' consensus view on WSM stock is cautiously optimistic, with an overall "Moderate Buy" rating. Among 20 analysts covering the stock, eight recommend "Strong Buy," one suggests "Moderate Buy," and 11 indicate “Hold.” As of writing, it is trading above the average analyst price target of $219.68.
