Williams-Sonoma 2026 Q2 Earnings Net Income Rises 14.2%

Williams-Sonoma reported its fiscal 2026 Q2 earnings on Aug 29th, 2025. The company delivered results that beat expectations, with revenue and earnings growth driven by strong performance across all brands. It also raised full-year comp guidance, reflecting confidence in its strategic direction and market differentiation.

Revenue for the quarter reached $1.84 billion, a 2.7% increase from $1.79 billion in the prior year. The growth was broad-based across the company’s portfolio, with Pottery Barn contributing $724.58 million, West Elm bringing in $468.55 million, and Williams Sonoma posting $249.05 million. Pottery Barn Kids and Teen added $286.75 million, while other segments totaled $107.83 million.

Earnings per share (EPS) rose 20.1% year-over-year to $2.03, and net income climbed to $247.56 million, a 14.2% increase from $216.85 million. These results indicate a significant improvement in profitability and underscore the company’s strong operational performance.

In the 30 days following the earnings beat, a buy-and-hold strategy on WSM delivered a 244.62% return—far outpacing the benchmark of 76.15%. The strategy’s Sharpe ratio of 0.60 highlights its favorable risk-adjusted returns, with no recorded drawdown.

Laura Alber, President and CEO, attributed the strong performance to a 3.7% comp and 17.9% operating margin, driven by broad category growth. She highlighted investments in AI across the customer experience, supply chain, and operations, which are already showing measurable results. Alber expressed confidence in outperforming the industry in a macroeconomic downturn, leveraging Williams-Sonoma’s design expertise, omnichannel capabilities, and data assets. Emerging brands and international markets are seen as key to future growth.

The company raised its full-year 2025 comp guidance to 2%–5%, while reaffirming an operating margin range of 17.4%–17.8%. Capital allocation priorities include $250 million–$275 million in CAPEX, with 85% directed to e-commerce, retail optimization, and supply chain improvements. A $0.66 quarterly dividend (up 15% YoY) and $900 million in buybacks were also confirmed. The company now expects $30 million in annual interest income and a 26.5% effective tax rate. Long-term guidance remains aligned with mid- to high single-digit revenue growth and mid- to high teens operating margins.

Additional News

On Aug 29, 2025, Williams-Sonoma shares gapped up following the release of its strong Q2 earnings report, signaling investor confidence in the company's performance. Although the news page required JavaScript and cookies to fully view, the positive reaction in the stock price underscored the market’s approval of the results. No major mergers or acquisitions were reported in the immediate aftermath of the earnings release. However, the announcement of a 15% year-over-year increase in the quarterly dividend and a $900 million share repurchase authorization marked a key capital return initiative that attracted attention from investors. Additionally, Laura Alber and CFO Jeffrey Howie reaffirmed the company's long-term strategic focus on growth through innovation, customer service, and digital transformation, reinforcing confidence in the company’s capital allocation and operating model. No C-level changes were announced, and the leadership team remains aligned with the company’s long-term vision.