EarningsQ2 2026 Earnings Report
MX:WSM Q2 2026 EPS Results
Actual EPS$38.14
Consensus EPS$37.72
Beat/MissBeat by +$0.42
One Year Ago EPS$36.32
MX:WSM Q2 2026 Revenue Results
Actual Revenue$35.59B
Expected Revenue$35.00B
Beat/MissBeat by +$594.82M
YoY Revenue Growth+6.70%
Earnings Announcement Details
QuarterQ2 2026
Date08/26/2026
TimeBefore Open
Conference CallWednesday, August 26, 2026
MX:WSM Upcoming Earnings
Williams-Sonoma's next earnings date is estimated for November 12, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:WSM Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed broad operational momentum: top-line acceleration, market share gains, strong channel execution, double-digit growth in B2B and emerging brands, improved inventory discipline, and meaningful early AI-driven ecommerce results. Management raised full-year operational guidance (non-GAAP) and demonstrated the ability to grow operating income and EPS through peak tariff pressure. Key near-term challenges include tariff-driven merchandise margin pressure (Q2 peak but lingering), higher fuel/transportation costs, a Q4 anniversary of prior-year shrink benefits that will offset some gains, and general macro/tariff uncertainty. The sizable one-time tariff refunds improved GAAP results but are excluded from non-GAAP guidance, so underlying operational strength is a primary driver of the positive outlook.Company Guidance
Top-line Acceleration and Market Share Gains
Q2 comparable brand revenue (comp) accelerated to 6.2% and total net revenues were $1.96 billion, up 6.7% year-over-year. Management noted the home-furnishings industry was essentially flat in Q2, indicating the growth represented market share gains.
Strong Channel Performance
Ecommerce comp grew 6.5% and retail comp grew 5.5% in Q2, with broad-based strength across both furniture and non-furniture categories.
Profitability and EPS Growth
Operating income was $338 million (up ~3% YoY) with an operating margin of 17.3%. Diluted EPS was $2.10, up 5% year-over-year.
Raised Full-Year Guidance
Company raised fiscal 2026 guidance to comparable brand revenue growth of 4.0%–6.5%, total net revenue growth of 4.7%–7.2%, and operating margin of 17.8%–18.2% (both ends of ranges were raised). Guidance is non-GAAP and excludes tariff refund benefits.
Tariff Refund Receipt and Balance Sheet Impact
Received $200 million in tariff refunds (including interest). Recognized $174 million in Q2 GAAP income ($168M reduction to COGS and $6M interest). After $47M reimbursed to vendors and $10M to employees' 401(k), the net GAAP pretax benefit to Q2 was approximately $117M. An additional $29M refund reduction remains on inventory to flow through gross margin as inventory sells in Q3.
Business-to-Business and Emerging Brands Momentum
B2B grew 14.5% in Q2 with record demand; within B2B, contract grew ~20% and trade grew ~12%. Emerging brands delivered double-digit comps: Rejuvenation (double-digit comp and record categories), Mark and Graham (double-digit growth), and GreenRow (double-digit growth).
Inventory Discipline and Capital Returns
Merchandise inventories were $1.45 billion, up only 1% YoY versus revenue up 6.7%, indicating disciplined inventory management. Company invested $58M in capex in the quarter, paid $90M in dividends (a 15% increase YoY), repurchased $288M YTD, and has ~$1.1B remaining share repurchase authorization.
Technology and AI Driving Engagement
AI-powered assistants (Oliver and newly launched Otto) and personalization showed strong early results: Oliver engagement up ~700% year-to-date with revenue up ~620% for engaged users; personalized site visits now generate roughly 9x the revenue of an average visit (up from ~2x last year).
MX:WSM Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed