Aug. 26 at 12:08 PM
$WSM | WILLIAMS-SONOMA, INC. Q2 2026 EARNINGS HIGHLIGHTS
◆ EPS:
$2.10 vs.
$2.08 est. ✅
◆ Revenue:
$1.96B vs.
$1.93B est. ✅
◆ Net Income:
$338.1M (+36.6% YoY)
◆ Operating Income:
$448.8M (+36.8% YoY)
◆ Operating Expenses:
$563.2M (+4.9% YoY)
◆ H1 Operating Cash Flow:
$695.9M (+73.3% YoY)
Segment Performance:
◆ Pottery Barn:
$770.8M (+6.5% YoY)
◆ West Elm:
$496.3M (+5.9% YoY)
◆ Pottery Barn Kids & Teen:
$297.4M (+3.7% YoY)
◆ Williams Sonoma:
$268.8M (+7.9% YoY)
Key Metrics:
◆ IEEPA tariff refunds of
$167.8M reduced COGS in Q2 2026, boosting GAAP gross margin by +610bps versus prior year.
◆ Non-GAAP gross margin fell 160bps to 45.5% as tariff costs drove lower merchandise margins of -230bps.
◆ Merchandise inventories rose 1.0% YoY to
$1.45B, net of
$29.3M deferred tariff refund income reducing inventory.
Forward Guidance:
◆ FY2026 net revenue growth raised to +4.7% to +7.2% (was lower); comps in range of +4.0% to +6.5%
◆ FY2026 non-GAAP operating margin raised to 17.8% to 18.2%
◆ FY2026 annual interest income expected at approximately
$25M (non-GAAP basis)
◆ FY2026 effective tax rate expected at approximately 26% (non-GAAP basis)
