Williams-Sonoma Inc (NYSE:WSM) announced its 2026 revenue growth guidance ahead of expectations, while the earnings call gave confidence in the company's merchandise initiatives continuing to drive growth in the year, according to Telsey Advisory Group analyst Cristina Fernández.

The Williams-Sonoma Analyst: Fernández maintained an Outperform rating and price target of $220.

The Williams-Sonoma Thesis: The company guided to 2026 revenue growth and comparable brand sales growth of 2.7%-6.7% and 2%-6%, versus consensus estimates of 3.6% and 3.3%, respectively.

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However, Williams-Sonoma's guidance does not reflect any improvement in the housing market.

Fernández, in her research note, stated that growth drivers in 2026 include:

  • Improved stores experiences
  • Launch of the Dormify brand at PB Teen and West Elm Office
  • More exclusives and collaborations across brands
  • B2B (business-to-business) growth

The guidance reflects ongoing tariffs and assumes the current Section 122 tariffs will continue for the rest of the year, although this is slated to expire in July, she further said.

WSM Price Action: Shares of Williams-Sonoma had declined by 1.09% to $182.09 at the time of publication on Thursday.

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