Williams-Sonoma Q1 Earnings Call Highlights

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Thu, May 21, 2026 astatine 11:11 AM CDT 8 min read

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Williams-Sonoma bushed Q1 expectations with nett gross of $1.81 billion, comparable marque gross maturation of 4.8%, and diluted EPS of $1.93, portion posting an operating borderline of 16.2% contempt tariff and substance outgo pressures.
Brand show was broadly strong, led by West Elm (+8.5%), Pottery Barn Kids and Teens (+4.5%), Williams Sonoma (+5%), and affirmative results crossed the remainder of the portfolio, including double-digit maturation successful B2B and emerging brands.
Management reaffirmed full-year guidance for fiscal 2026, but highlighted uncertainty astir tariffs, involvement rates, and housing; the institution expects tariff impacts to beryllium heaviest successful the archetypal fractional of the year, with Q2 apt the peak.

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Williams-Sonoma (NYSE:WSM) reported stronger first-quarter fiscal 2026 income and earnings, with absorption pointing to broad-based gains crossed its marque portfolio, improving show successful some furnishings and non-furniture categories and continued benefits from proviso concatenation efficiencies.

President and Chief Executive Officer Laura Alber said the institution “is disconnected to a beardown start” aft posting comparable marque gross maturation of 4.8% successful the quarter. She said each marque delivered a affirmative comparable result, with spot crossed retail and direct-to-consumer channels.

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Chief Financial Officer Jeff Howie said first-quarter nett gross was $1.81 billion. E-commerce comparable income roseate 4.8%, portion retail comparable income accrued 4.7%. Howie said some one-year and two-year comparable income accelerated from the 4th quarter, and some furnishings and non-furniture categories posted affirmative comps.

Operating income was $292 million, with an operating borderline of 16.2%. Diluted net per stock were $1.93, up 4% from $1.85 a twelvemonth earlier. Alber said the institution delivered the borderline “even portion absorbing tariffs and higher substance costs.”

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Gross borderline was 44%, down astir 30 ground points from the anterior year. Howie said merchandise margins declined 100 ground points, chiefly due to the fact that higher tariffs flowed done the company’s weighted mean outgo of goods sold. Full-price selling was fundamentally level twelvemonth implicit year.

Howie said water freight costs were pressured by higher lipid prices, but the institution partially offset those headwinds done proviso concatenation efficiencies and occupancy leverage. Supply concatenation efficiencies, including a little shrink accrual, provided astir 50 ground points of gross borderline payment successful the quarter. Occupancy costs leveraged astir 20 ground points arsenic income maturation much than offset a 3% summation successful occupancy dollars.

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