Key Stats for Williams-Sonoma Stock
- Current Price: $193 (May 22, 2026)
- Q1 FY2026 Revenue: $1.8B, +4.4% YoY
- Q1 FY2026 Adjusted EPS: $1.93, +4.3% YoY
- FY2026 Revenue Guidance (comp growth): 2% to 6%, total revenue growth 2.7% to 6.7%
- FY2026 Operating Margin Guidance: 17.5% to 18.1%
- TIKR Model Price Target: $249
- Implied Upside: ~29%
WSM Stock Beats on Every Brand While Tariffs Start Squeezing the Margin Line
Williams-Sonoma, Inc. (WSM) posted Q1 FY2026 revenue of $1.8B and adjusted EPS of $1.93, topping the prior year’s $1.85 and beating Street estimates of $1.80, following its Q1 2027 earnings release.
Comparable brand revenue grew 4.8% in the quarter, accelerating from Q4 on both a one-year and two-year basis.
Every brand in the portfolio delivered a positive comp — the first time management explicitly confirmed that outcome in several quarters.
West Elm led the portfolio with an 8.5% comp, powered by furniture newness, the Emma Chamberlain collaboration, and continued retail strength.
The Williams-Sonoma brand held its ground with a 5% comp on top of a 7.3% comp from the same period last year, while Pottery Barn Kids delivered a 4.5% comp and Pottery Barn returned to positive territory with a 1% comp.
Laura Alber, President and CEO, stated on the Q1 earnings call that “every brand delivered a positive comp in Q1 and we also saw strength in both our retail and DTC channels with improvements across the customer journey.”
B2B reached a record quarter with 13.7% growth — trade up 9% and contracts up 22% — with Jeff Howie, CFO, noting the division is targeting a path to $2B.
Q1 operating income came in at $292M at a 16.2% operating margin, which management described as ahead of expectations even while absorbing higher tariff costs flowing through weighted average cost of goods and higher ocean freight and domestic fuel expenses.
Gross margin landed at 44%, down approximately 30 basis points versus last year, with merchandise margins declining 100 basis points from tariff cost flow-through — partly offset by 50 basis points of supply chain efficiency gains and 20 basis points of occupancy leverage.
The company returned $373M to shareholders in Q1 through $288M in buybacks and $85M in dividends, with the dividend representing a 15% increase year-over-year and fiscal 2026 marking the 17th consecutive year of increased payouts.
Management reiterated full-year FY2026 guidance of 2% to 6% comp brand revenue growth and operating margin in the range of 17.5% to 18.1%, declining to raise guidance despite the Q1 beat, citing early-year uncertainty around tariffs, geopolitics, oil prices, and the housing market.
TIKR’s $249 Target on Williams-Sonoma Stock Prices In Steady Execution, Not a Housing Recovery
TIKR’s mid-case valuation model prices Williams-Sonoma stock at $249, implying approximately 29% total return from the current price of $193 over approximately 5 years at an annualized rate of 5.6% per year.
The mid-case assumes a revenue CAGR of 4%, a net income margin of 14%, and EPS CAGR of 5.2%, with P/E multiple compression of 2.7% annually embedded in the model.
That compression is the friction point: Williams-Sonoma stock reaches the target through earnings growth alone, not through re-rating, which means a housing recovery that expands the multiple would make the $249 target look conservative.
The Q1 beat narrows the debate on Williams-Sonoma stock to one question: whether the 17.5% to 18.1% operating margin guidance holds as tariff pressure peaks in Q2.
The TIKR mid-case prices Williams-Sonoma stock at $295 at full realization, with a 5.0% IRR, supported by management’s reiterated guidance and the expectation that tariff headwinds moderate in the back half as cost flows through weighted average accounting.
The high case at $356 and 7.3% IRR requires revenue growth at the top end of the guided range and a net income margin of 14.7%, conditions that would likely need a housing market recovery management is explicitly not building into its numbers.
The low case at $236 and 2.4% IRR reflects a scenario where tariff pressure lingers, top-line comps settle at the low end of the 2% to 6% guidance band, and B2B momentum stalls after its record Q1.
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