Williams-Sonoma, Inc. (NYSE:WSM) reported first-quarter fiscal 2026 results on Thursday, posting revenue and earnings above Wall Street estimates as comparable brand revenue rose 4.8%.

The home furnishings retailer reported net revenues of $1.805 billion, up 4.4% from $1.730 billion a year earlier, topping analyst estimates of $1.793 billion.

Diluted GAAP EPS rose 4.3% to $1.93, beating estimates of $1.82. The stock traded higher following the results.

Williams-Sonoma Margin Performance And Profitability

Net earnings were $231.4 million, compared with $231.3 million a year earlier.

Operating income totaled $291.7 million, while operating margin narrowed to 16.2% from 16.8%.

Gross margin declined 30 basis points to 44.0%, driven by lower merchandise margins, partially offset by supply chain efficiencies and occupancy leverage.

“We are off to a strong start in 2026. In Q1, our comp came in at 4.8%, and we delivered an operating margin of 16.2% with earnings per share of $1.93. Every brand delivered a positive comp in the quarter, driven by the strength of our portfolio, our channels, and our teams,” said Laura Alber, President and Chief Executive Officer.

“We continue to outperform on both the top and bottom lines. We are delivering compounding results year-after-year despite the cyclical swings of the housing market and other macroeconomic events,” Alber added.

Brand Performance Drives Revenue Growth

West Elm led growth with comparable brand revenue up 8.5% and revenue rising to $471.2 million from $437.1 million a year earlier.

Pottery Barn revenue increased to $708.4 million with comparable brand revenue growth of 1.0%, while Williams Sonoma revenue rose to $271.5 million with comparable brand revenue growth of 5.0%.

Pottery Barn Kids and Teen revenue increased to $240.1 million with comparable brand revenue growth of 4.5%.

Cash Flow, Inventory And Shareholder Returns

Merchandise inventories increased 9.0% year over year to $1.46 billion, including about $60 million in incremental tariff costs.

The company generated $156.3 million in operating cash flow and ended the quarter with $651.6 million in cash and cash equivalents.

WSM returned $373 million to stockholders through share repurchases and dividends.

Fiscal 2026 Outlook Remains Unchanged

Williams-Sonoma reiterated fiscal 2026 guidance for annual net revenue growth of 2.7% to 6.7%, implying sales of $8.017 billion to $8.330 billion, compared with analyst estimates of $8.139 billion.

The company also maintained guidance for comparable brand revenue growth of 2.0% to 6.0% and an operating margin of 17.5% to 18.1%.

The outlook assumes elevated oil prices and current tariff rates remaining in place throughout fiscal 2026.

Williams-Sonoma Price Action

WSM Price Action: Williams-Sonoma shares were up 5.96% at $190.99 at the time of publication on Thursday, according to Benzinga Pro data.

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