Williams-Sonoma, Inc.

Williams-Sonoma, Inc. (WSM) Market Cap

Williams-Sonoma, Inc. has a market capitalization of —.

No quote data available.

CEO: Laura J. Alber

Sector: Consumer Cyclical

Industry: Specialty Retail

IPO Date: 1983-07-07

Website: https://www.williams-sonomainc.com

Williams-Sonoma, Inc. (WSM) - Company Information

Market Cap: -|Sector: Consumer Cyclical

Company Profile

Williams-Sonoma, Inc. operates as an omni-channel specialty retailer of various products for home. It offers cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams Sonoma Home brand, as well as home furnishings and decorative accessories under the Williams Sonoma lifestyle brand; and furniture, bedding, lighting, rugs, table essentials, and decorative accessories under the Pottery Barn brand. The company also provides home decor products under the West Elm brand; kids accessories under the Pottery Barn Kids brand; and an organic bedding to multi-purpose furniture under the Pottery Barn Teen brand. In addition, it offers made-to-order lighting, hardware, furniture, and home decors inspired by history under the Rejuvenation brand; and women's and men's accessories, travel, entertaining and bar, home décor, and seasonal items under the Mark and Graham brand, as well as operates a 3-D imaging and augmented reality platform for the home furnishings and décor industry. The company markets its products through e-commerce websites, direct-mail catalogs, and retail stores. It operates 544 stores comprising 502 stores in 41states, Washington, D.C., and Puerto Rico; 20 stores in Canada; 19 stores in Australia; 3 stores in the United Kingdom; and 139 franchised stores, as well as e-commerce websites in various countries in the Middle East, the Philippines, Mexico, South Korea, and India. Williams-Sonoma, Inc. was founded in 1956 and is headquartered in San Francisco, California.

Analyst Sentiment

62%
Buy

From 22 Active Polls

1Y Forecast: $205.29

▲ +0.0% Potential Upside

Consensus Target Metrics

Low Bound

$190

Median

$200

High Bound

$230

Average

$205

Price & Moving Averages

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🎯 Wall Street Analyst Intelligence Report

1-Year structural target targets, chart projections, and sentiment maps.

Average 1Y Target
$205.29
▲ +0.15% Upside
Low Target
$190.00
-7% Risk
Median Target
$200.00
-2% Mid
High Target
$230.00
12% Max

Consensus Trend Projection

Trailing closures vs. 12-month metrics map.

Analyst Vote Distribution

Aggregate institutional coverage sentiment weights.

Sentiment volume allocation data unavailable.

valuation & financial ratiosdetailed financials

Historical valuation matrix unavailable.

📘 Full Research Report

ℹ️

AI-Generated Research: This report is for informational purposes only.

📘 WILLIAMS SONOMA INC (WSM) — Investment Overview

🧩 Business Model Overview

Williams-Sonoma Inc. operates a specialty home retail platform that spans owned brands and multi-channel execution (stores and digital). The company designs and curates assortments across key categories—furniture, bedding, kitchenware, decor, and seasonal items—then monetizes those products through branded storefronts, e-commerce, and fulfillment operations.

A central element of the model is merchandising discipline: WSM combines a portfolio of distinctive brands with category expertise and supply-chain scale. This enables consistent product availability, tailored assortment by brand, and efficient distribution that supports both store replenishment and direct-to-consumer delivery.

💰 Revenue Streams & Monetisation Model

WSM’s revenue is predominantly transactional, generated by sales of owned-brand products and, to a lesser extent, partner brands where applicable. The business is not “subscription-like,” but monetization is supported by repeat purchasing behavior driven by home life events (weddings/households, remodels, seasonal refresh cycles) and by a deep catalog of replenishment-oriented goods (kitchen staples, bedding, lighting, and decor).

Margin structure typically reflects:

  • Gross margin leverage driven by product mix (owned brands vs. third-party assortments), pricing power, sourcing terms, and freight efficiency.
  • Operating leverage from distribution scale, marketing efficiency, and store productivity (traffic converted into sales at acceptable inventory turns).
  • Working-capital discipline as inventory management directly affects markdown exposure and cash generation.

🧠 Competitive Advantages & Market Positioning

WSM’s moat is best characterized as scale/distribution leverage combined with private-label (owned brand) resistance. In specialty home retail, differentiation often appears through product design, breadth of curated assortments, and brand-level merchandising—areas where WSM has built capabilities and procurement economics that are difficult to replicate quickly at comparable scale.

  • Scale/Distribution leverage: Multi-brand operations and distribution infrastructure support efficient replenishment and fulfillment economics versus smaller specialty retailers.
  • Private-label resistance: Owned brands reduce reliance on commodity-like third-party inventories and provide greater control over quality, design cadence, and pricing architecture.
  • Brand-anchored assortment depth: The brand portfolio creates “category homes” across kitchen, living, and bedding needs, encouraging repeat purchases within households.

Competitive benchmarking (industry peers):

  • Wayfair (online home furnishings): Competes heavily on digital selection and fulfillment. WSM’s advantage centers on owned-brand merchandising and store+digital execution with category-specific curation.
  • RH (high-end specialty): Competes on design-led premium positioning. WSM’s broader mid-to-premium portfolio diversifies demand drivers and reduces dependence on a single price tier.
  • Target and Costco (mass/warehouse retail): Compete on value and assortment breadth. WSM’s private-label and design-driven assortment aims to maintain differentiation away from pure price competition.

🚀 Multi-Year Growth Drivers

  • Share shift toward digital and omnichannel convenience: Online shopping penetration in home categories supports direct-to-consumer growth, while store networks remain useful for sampling and service-led buying.
  • Owned-brand mix expansion: Increasing the share of products where WSM controls design, sourcing, and pricing typically improves margin resilience.
  • Category growth inside the home ecosystem: Long-lived categories (kitchenware, bedding, lighting) benefit from household replenishment and higher-than-average engagement around remodels and seasonal refresh.
  • International and cross-border e-commerce potential: Brand-led digital commerce can extend addressable market without the same lease-driven cost structure as physical expansion.
  • Operational improvement cycles: Better inventory productivity, more efficient fulfillment, and tighter merchandising feedback loops can extend operating leverage through the cycle.

⚠ Risk Factors to Monitor

  • Inventory and markdown risk: Home categories are sensitive to demand shifts; misaligned assortment or excess inventory can pressure gross margins.
  • Promotional intensity and price competition: Mass retailers and large e-commerce platforms can force promotional behavior that compresses margins.
  • Freight and input cost volatility: Home products are logistics-sensitive; changes in transportation and sourcing costs can affect gross margin.
  • Consumer discretionary demand elasticity: Furniture and décor spending can downshift during macro stress.
  • Real estate and execution risk: Store footprint and lease obligations introduce fixed-cost leverage and execution complexity.

📊 Valuation & Market View

The market typically values specialty retail on EV/EBITDA and P/S, with narrative emphasis on sustainable gross margin, inventory health, and operating leverage. For this business model, the “multiple” tends to expand or contract based on:

  • Gross margin durability (owned-brand mix, pricing discipline, freight and sourcing terms).
  • Inventory turns and markdown rate (working capital conversion quality).
  • Sales leverage from store productivity and digital conversion efficiency.
  • Expense discipline (fulfillment cost per order, controllable marketing spend efficiency).

Given the transactional nature of revenue, valuation often responds to evidence that merchandising and inventory management can sustain profitability through a full demand cycle.

🔍 Investment Takeaway

WSM offers a durable specialty retail thesis anchored in owned-brand merchandising and scale-driven distribution economics. The investment case rests on sustaining gross margin and inventory productivity while expanding the owned-brand and omnichannel mix—reducing exposure to pure price competition and supporting resilient operating leverage over a multi-year horizon.


⚠ AI-generated — informational only. Validate using filings before investing.

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📊 AI Financial Analysis

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Earnings Data: Q Ending 2026-05-03

"WSM reported Q1 2026 revenue of $1.805B and net income of $231M, with diluted EPS of $1.93. On a QoQ basis, revenue fell to $1.805B from $2.357B in Q4 2025 (-23.4%), while net income declined to $231M from $368M (-37.1%). YoY comparisons show revenue rose from $1.730B in Q1 2025 to $1.805B (+4.5%), and net income increased from $231M to $231M (+0.04%)—i.e., earnings were essentially flat despite top-line growth. Profitability was mixed: net margin weakened to 12.8% in Q1 2026 from 13.4% in Q1 2025 (down ~0.5pp) and also from 15.6% in Q4 2025 (down ~2.8pp). Cash flow remains solid: operating cash flow was $156M and free cash flow was $99M in the quarter, supported by operating cash conversion even as working capital was a headwind (change in working capital: -$145M). Shareholder returns are strong given market momentum—WSM’s 1-year price change is +44.4%—along with continued capital returns: the company paid $86M in dividends and repurchased $381M of common stock in the quarter. Balance sheet resilience is moderate: equity was $1.87B and net debt increased to ~$842M from ~$437M in Q4 2025, reflecting higher leverage."

Revenue Growth

Neutral

QoQ revenue decreased from $2.357B (Q4 2025) to $1.805B (Q1 2026) (-23.4%), reflecting seasonality. YoY revenue grew modestly from $1.730B (Q1 2025) to $1.805B (+4.5%).

Profitability

Fair

Net income was essentially flat YoY ($231.3M vs $231.3M, +0.04%), while net margin contracted to 12.8% from 13.4% in Q1 2025 (down ~0.5pp) and from 15.6% in Q4 2025 (down ~2.8pp).

Cash Flow Quality

Positive

Q1 2026 operating cash flow was $156M and free cash flow $99M. Working capital was a drag (-$145M change in working capital), but cash generation remained positive; dividends and buybacks were funded without a cash-flow collapse.

Leverage & Balance Sheet

Neutral

Equity was $1.87B. Net debt rose to ~$842M from ~$437M QoQ, indicating increasing leverage versus last quarter, though liquidity (cash $652M) remains meaningful.

Shareholder Returns

Strong

Total shareholder return is bolstered by strong momentum: 1y_change +44.4% (>20%). Capital returns also active in the quarter (dividends paid $86M; buybacks $381M).

Analyst Sentiment & Valuation

Positive

With price at $198.69 and consensus target $199, valuation appears roughly in line with consensus. (High recent momentum supports sentiment, but valuation upside looks limited near term.)

Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.

RevenueEarningsP/E RatioSharesDebtMargin %

Fundamentals Overview

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WSM delivered a strong Q1 2026 with +4.8% comp growth and EPS of $1.93, while operating margin reached 16.2% and beat expectations despite tariffs and higher fuel costs. The margin story was a mix of ~-30 bps gross margin and ~-100 bps merchandise-margin pressure from tariff-driven COGS, partially offset by ~+50 bps supply-chain efficiency (lower shrink accrual) and ~+20 bps occupancy leverage. SG&A rose ~30 bps as employment deleveraged, though advertising leveraged. Guidance was reiterated rather than raised: FY26 comps +2% to +6% (midpoint ~4%) and operating margin 17.5% to 18.1% (midpoint ~17.8%). Management emphasized a front-half-weighted tariff impact that moderates later, with no tariff-refund benefit assumed. Investor focus in Q&A centered on consumer behavior, whether demand is promotionally/artificial, and supply chain KPIs supporting service-led execution.

AI IconGrowth Catalysts

  • Broad-based positive comps: companywide comp +4.8% with every brand positive
  • West Elm comp +8.5% driven by newness, better in-stock availability, and product/channel improvements
  • Williams Sonoma comp +5.0% driven by kitchen acceleration and proprietary/market-exclusive design products
  • Pottery Barn comp +1.0% improvement tied to heritage aesthetic in marketing/product and improved value
  • Pottery Barn Kids comp +4.5% supported by collaborations/licensing (Love Shack Fancy, Christopher Loves Julia) and registry/dorm momentum
  • B2B record quarter +13.7% with trade +9% and contract +22%
  • Supply chain efficiency initiatives reducing returns/replacements and improving timely delivery to support net revenue momentum

Business Development

  • Partnership/collaboration: Love Shack Fancy (Pottery Barn Kids); Christopher Loves Julia (Pottery Barn Kids)
  • Collaboration: Emma Chamberlain collection (West Elm)
  • Spokesperson/partnership: Kelly Wearstler for Williams Sonoma exclusive rental offering
  • Product collaboration: Stanley Tucci pizza oven with Green Pan (Williams Sonoma)
  • Food collaboration: Oakville Grocery (Napa Valley) with Williams Sonoma
  • B2B marquee projects/customers: Delano Miami; Bernardus Resort and Spa; AMLI; Greystar
  • B2B sports/entertainment: Capital One Arena Live Nation Philadelphia; upcoming work with the US Open
  • Industry recognition: Hospitality Design Expo “best in show” award (for B2B) to start Q2
  • New brand launch: Dormify launched as the 10th brand for Pottery Barn Kids

AI IconFinancial Highlights

  • Net revenues: $1.81B with +4.8% comp growth
  • Operating margin: 16.2%, ahead of expectations
  • EPS: $1.93 vs $1.85 prior year (+~4%)
  • Gross margin: 44.0%, down ~30 bps YoY; merchandise margins down ~100 bps
  • Tariffs: higher weighted-average COGS from tariffs pressured merchandise margins (~100 bps decline)
  • Offsetting bps benefits: supply chain efficiencies (lower shrink accrual) delivered ~+50 bps gross margin benefit; occupancy cost leverage ~+20 bps
  • SG&A: 27.8% of revenues, up ~30 bps YoY; employment expense deleveraged ~30 bps; advertising leveraged ~10 bps; general expenses deleveraged ~10 bps (timing)
  • Inventory: $1.46B (+9% YoY) including ~$60M embedded incremental tariff costs; ex-tariff would be in line with top-line growth
  • Guidance includes: no benefit from tariff refunds (uncertain timing); tariffs assumed to remain in effect for FY26 with impact front-half weighted

AI IconCapital Funding

  • Returned to investors: $373M in Q1 via share repurchases and dividends
  • Share repurchases: $288M, ~1.4% of shares outstanding
  • Dividends: $85M, +15% YoY; quarterly dividend $0.76/share (15% increase YoY) maintained
  • Q1 capex: $58M
  • Full-year capex guidance: ~$275M; ~95% allocated to ecommerce, retail, and supply chain
  • Remaining buyback authorization: ~$1.1B under current authorizations
  • Balance sheet / runway referenced indirectly via “fortress balance sheet” (no new debt figures provided)

AI IconStrategy & Ops

  • Extended AI further into the customer journey; scaled personalization and optimized shopping/checkout experience
  • Automation investment to improve customer care and strengthen product discovery; advanced design tools
  • Supply chain focus: timely delivery, low returns/replacements, and continued shrink reduction to offset tariffs/fuel
  • Customer care differentiation targets: “perfect order on time, damage free every time” with explicit KPIs
  • Retail footprint: year-end store count expected essentially flat in FY26; FY27 onward expected 1% to 3% annual store count growth
  • West Elm store expansion plan: 5 West Elm openings planned in 2026

AI IconMarket Outlook

  • FY26 guidance reiterated (not raised): net revenue comps +2% to +6% (midpoint ~4%); total net revenue growth +2.7% to +6.7%
  • FY26 operating margin guidance: 17.5% to 18.1% (midpoint ~17.8%)
  • Interest income (full year): ~$25M
  • Effective tax rate (full year): ~25.5%
  • Tariff modeling: impact assumed front-half weighted and moderating in back half; tariffs assumed all currently in place remain for balance of FY26; Section 122 assumed replaced around July at similar rate

AI IconRisks & Headwinds

  • Tariffs: merchandise margin pressure (MM decline ~100 bps YoY) and continued uncertainty; management does not plan for tariff refunds benefit
  • Fuel/oil: higher fuel and transportation costs (ocean freight pressure and domestic shipping cost pressure) though partially mitigated by scale and supply chain efficiencies
  • External uncertainty: geopolitics/war, trade policy/tariffs, and interest rates; management explicitly not building a meaningful housing recovery into guidance
  • Tariff policy changes could require guidance updates (timing and ultimate tariff levels uncertain)

Q&A: Analyst Interest

  • Topic: Consumer demand and potential price actions under persistent inflation—Management’s detailed response: Management said they cannot speak for other reports but believe the consumer is responding to products and strategies across channels/brands, evidenced by broad-based furniture-to-small-items strength and non-promotionally driven events. For persistent inflation, they said it is too early to comment on price increases, emphasizing differentiation beyond price and continued investment in “best value.”
  • Topic: Tariff cadence, merchandise margin trough/peak timing, and guidance assumptions—Management’s detailed response: Management stated Q1 merchandise-margin declined about 100 bps but was a little better than Q4 and slightly better than expected. They reiterated that tariffs are heavily front-weighted and then moderate across the back half due to weighted-average cost accounting flow. They also said Q2 lacks the easier timing comparisons present in Q1, making Q2 likely the peak impact period.
  • Topic: Underlying demand curve, West Elm/Pottery Barn drivers, and supply chain KPI visibility—Management’s detailed response: On underlying demand, management pushed back on a tax-refund-only view, citing broad-based, non-promotionally led strength, “very, very strong Easter,” and confidence from improved stock/newness. They described West Elm positioning as sustainable and Pottery Barn improvements as early-stage. On supply chain, management highlighted KPIs: perfect order on time and damage-free, plus customer satisfaction validation via post-delivery signoff and photo capture.

Sentiment: POSITIVE

Note: This summary was synthesized by AI from the WSM Q1 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.

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© 2026 Stock Market Info — Williams-Sonoma, Inc. (WSM) Financial Profile