WSMWilliams SonomaQ1 FY2026Earnings Analysis

SolidFundamentals score6 / 10

How is this scored?

Base score5
No high-severity risk factors+1

Total6 / 10

Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.

Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →

AI Takeaway

WSM delivered 4.4% revenue growth to $1.805B and 4.3% diluted EPS growth to $1.93 in Q1 FY2026, but tariff-driven gross-margin pressure and heavier capital returns reduced cash balances and equity. Source: 10-Q Item 2 MD&A, pp.14-17.

Revenue

$1.81B

+4.35% YoY

EPS (Diluted)

$1.93

+4.32% YoY

Gross Margin

43.9%

-0.3 pts YoY

Operating Income

$291.69M

+0.34% YoY

Filed May 22, 2026 · Analysis updated Jul 24, 2026 · Source: SEC EDGAR 10-Q filing

Next WSM earnings expected Aug 25, 2026

Revenue Growth, Margins & Profitability

Source: SEC XBRL

Williams Sonoma (WSM) reported Q1 FY2026 revenue of $1.81B, up 4.4% year over year. Operating margin was 16.2%, down 0.6 points from 16.8% a year earlier. Operating cash flow was $156.32M, up 31.4% year over year. WSM's fiscal Q1 FY2026 corresponds to calendar Q2 2026.

WSM vs Analyst Expectations

Last 4 quarters: 4 beats

Quarter	Actual EPS (USD)	Consensus (USD)	Result
Jun 2026	1.93	1.83	Beat +5.7%
Mar 2026	3.04	2.92	Beat +3.9%
Dec 2025	1.96	1.89	Beat +3.9%
Sep 2025	2.00	1.82	Beat +9.7%

WSM Q1 FY2026 Management Discussion Highlights

Compiled by AI from 10-Q Item 2 of this filing

Comparable sales growth drove revenue increase

Net revenues rose $75.3M, or 4.4%, to $1.805B, driven by $78.6M of company comparable-brand revenue growth (4.8%), partly offset by a $3.3M decline in non-comparable revenue from lower franchise revenue and retail-store closures. Comparable revenue grew 4.8% in e-commerce and 4.7% in retail.

Source: 10-Q Item 2 MD&A

Growth was broad-based across core brands

West Elm posted 8.5% comparable-brand revenue growth, Williams Sonoma grew 5.0%, Pottery Barn Kids and Teen grew 4.5%, and Pottery Barn grew 1.0%; emerging brands Rejuvenation, Mark and Graham, and GreenRow generated double-digit growth on a combined basis.

Source: 10-Q Item 2 MD&A

Tariffs compressed merchandise margins

Gross margin declined 30 basis points to 44.0%, as a 100-basis-point decline in merchandise margins from tariff flow-through into cost of goods sold was partly offset by 50 basis points of supply-chain efficiencies and 20 basis points of occupancy-cost leverage.

Source: 10-Q Item 2 MD&A

Operating-cost investments limited operating-income growth

SG&A increased $26.6M, or 5.6%, to 27.8% of revenue from 27.5%, primarily due to higher employment expense associated with talent investments and higher performance-based incentive compensation. Consequently, operating income increased only $1.0M, or 0.3%, to $291.7M.

Source: 10-Q Item 2 MD&A; 10-Q Income Statement (XBRL)

Liquidity remained substantial despite elevated shareholder returns

The company ended Q1 FY2026 with $651.6M of cash and no revolving-credit borrowings, generated $156.3M of operating cash flow, spent $57.7M on capital expenditures, and returned $373.4M through share repurchases and dividends. It also filed for $197.8M of IEEPA tariff refunds, but did not record a receivable because collection was uncertain.

Source: 10-Q Item 2 MD&A

WSM Q1 FY2026 Risk Factors

Compiled by AI from this SEC filing · 0 high, 3 medium, 1 low

Cash balance declined amid large capital returns

medium

Cash and cash equivalents were $651.6M, down 37.8% year over year from $1.047B. Financing cash outflow was $467.0M, including $287.8M of share repurchases, which reduces the cash cushion available for operations and other needs.

Source: 10-Q Balance Sheet and Cash Flow Statement (XBRL)

Leverage relative to equity increased

medium

Total liabilities increased 6.5% year over year to $3.190B while stockholders' equity declined 13.5% to $1.870B. Reported debt-to-equity was 1.71x, indicating a higher liability burden relative to the company’s equity base.

Source: 10-Q Balance Sheet (XBRL)

Margin pressure from rising costs

medium

Cost of revenue increased 4.9%, faster than revenue growth of 4.4%, causing gross margin to decline to 43.9% from 44.3%. Operating margin also declined to 16.2% from 16.8%, showing that cost growth constrained profit conversion.

Source: 10-Q Income Statement (XBRL)

Current liquidity is adequate but lower than the prior year

low

The current ratio was 1.33x, meaning current assets exceeded current liabilities, but current assets declined 9.7% year over year while current liabilities rose 2.4%. This leaves less short-term balance-sheet flexibility than a year earlier, although the ratio remains above 1.0x.

Source: 10-Q Balance Sheet (XBRL)

WSM Financial Charts & Detailed Metrics

Revenue & Net Income Trend

Margin Trend

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Key Metrics

Income Statement

Metric	Current	Previous	YoY Change
Revenue $B	1.81 $B	1.73 $B	+4.35%
Cost of Revenue $B	1.01 $B	0.96 $B	+4.95%
Gross Profit $M	793.43 $M	765.81 $M	+3.61%
Operating Income $M	291.69 $M	290.71 $M	+0.34%
Net Income $M	231.36 $M	231.26 $M	+0.04%
EPS (Basic) $	1.95 $	1.88 $	+3.72%
EPS (Diluted) $	1.93 $	1.85 $	+4.32%
SG&A Expense $M	501.74 $M	475.10 $M	+5.61%

Balance Sheet

Metric	Current	Previous	YoY Change
Total Assets $B	5.06 $B	5.16 $B	-1.90%
Current Assets $B	2.35 $B	2.60 $B	-9.69%
Total Liabilities $B	3.19 $B	3.00 $B	+6.47%
Current Liabilities $B	1.76 $B	1.72 $B	+2.38%
Stockholders' Equity $B	1.87 $B	2.16 $B	-13.49%
Cash & Equivalents $B	0.65 $B	1.05 $B	-37.78%

Cash Flow

Metric	Current	Previous	YoY Change
Operating Cash Flow $M	156.32 $M	118.95 $M	+31.42%
Investing Cash Flow $M	-57.68 $M	-58.23 $M	+0.95%
Financing Cash Flow $M	-466.98 $M	-230.00 $M	-103.04%
Share Buybacks $M	287.81 $M	89.97 $M	+219.89%
D&A $M	56.12 $M	56.40 $M	-0.51%

Key Ratios

Metric	Current	Previous	YoY Change
Gross Margin	43.9%	44.3%	-0.3 pts
Operating Margin	16.2%	16.8%	-0.6 pts
Net Margin	12.8%	—	—
ROE	12.4%	—	—
ROA	4.6%	—	—
Current Ratio	1.33	—	—
Debt to Equity	1.71	—	—

WSM Q1 FY2026 Earnings FAQ

Answers draw on this SEC filing and the data on this page

How did Williams-Sonoma (WSM) revenue grow in Q1 FY2026?

Revenue increased 4.4% year over year to $1.805B in Q1 FY2026. The increase was driven by 4.8% company comparable-brand revenue growth, with comparable e-commerce revenue up 4.8% and comparable retail revenue up 4.7%. Source: 10-Q Item 2 MD&A, pp.14-15.

What were the key takeaways from WSM Q1 FY2026 earnings?

WSM grew diluted EPS 4.3% to $1.93 and revenue 4.4% to $1.805B, but operating income rose only 0.3% to $291.7M. Tariff-related merchandise-cost pressure reduced gross margin by 30 basis points to 44.0%, while SG&A increased 5.6%. Source: 10-Q Item 2 MD&A, pp.14-16; 10-Q Income Statement (XBRL).

Why did Williams-Sonoma's gross margin decline in Q1 FY2026?

Gross margin decreased to 44.0% from 44.3%, primarily because tariffs flowing into cost of goods sold reduced merchandise margins by 100 basis points. Supply-chain efficiencies and occupancy-cost leverage partially offset that pressure by a combined 70 basis points. Source: 10-Q Item 2 MD&A, p.15.

What is WSM's financial health after Q1 FY2026?

WSM had $651.6M of cash, no outstanding borrowings under its revolving credit facility, and generated $156.3M of operating cash flow in Q1 FY2026. However, cash was down 37.8% year over year after $373.4M of dividends and share repurchases, and the current ratio was 1.33x. Source: 10-Q Item 2 MD&A, pp.14, 16-17; 10-Q Balance Sheet and Cash Flow Statement (XBRL).

Did Williams-Sonoma record tariff refunds in Q1 FY2026?

No. WSM filed for $197.8M of refunds for previously paid IEEPA tariffs, but did not record a receivable or a corresponding reduction in cost of goods sold or inventory as of May 3, 2026 because receipt remained uncertain. Source: 10-Q Item 2 MD&A, p.14.

When is the next WSM earnings date?

Williams Sonoma (WSM) is next expected to report earnings on Aug 25, 2026. The date comes from the analyst earnings calendar and can shift until the company confirms it.

Next WSM Earnings

WSM Q3 2026 Earnings Preview

Expected release date, analyst estimates & what to watch

More WSM Earnings Reports

WSM FY2025

WSM delivered modest FY2025 revenue growth of +1.2% to $7.81B, but net income declined 3.3% to $1.09B as higher costs and SG&A pressures compressed margins, while the company returned over $850M to shareholders via buybacks.

WSMWilliams SonomaQ1 FY2026

SolidFundamentals score6 / 10

How is this scored?

Base score5
No high-severity risk factors+1

Total6 / 10

Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.

Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →

AI Takeaway

Quarter

Actual EPS (USD)

Consensus (USD)

Result

Jun 2026

1.93

1.83

Beat +5.7%

Mar 2026

3.04

2.92

Beat +3.9%

Dec 2025

1.96

1.89

Beat +3.9%

Sep 2025

2.00

1.82

Beat +9.7%

Metric

Current

YoY Change

Revenue $B

1.81

+4.35%

Cost of Revenue $B

1.01

+4.95%

Gross Profit $M

793.43

+3.61%

Operating Income $M

291.69

+0.34%

Net Income $M

231.36

+0.04%

EPS (Basic) $

1.95

+3.72%

EPS (Diluted) $

1.93

+4.32%

SG&A Expense $M

501.74

+5.61%

Metric

Current

YoY Change

Total Assets $B

5.06

-1.90%

Current Assets $B

2.35

-9.69%

Total Liabilities $B

3.19

+6.47%

Current Liabilities $B

1.76

+2.38%

Stockholders' Equity $B

1.87

-13.49%

Cash & Equivalents $B

0.65

-37.78%

Metric

Current

YoY Change

Operating Cash Flow $M

156.32

+31.42%

Investing Cash Flow $M

-57.68

+0.95%

Financing Cash Flow $M

-466.98

-103.04%

Share Buybacks $M

287.81

+219.89%

D&A $M

56.12

-0.51%

Metric

Current

YoY Change

Gross Margin

43.9%

-0.3 pts

Operating Margin

16.2%

-0.6 pts

Net Margin

12.8%

—

ROE

12.4%

—

ROA

4.6%

—

Current Ratio

1.33

—

Debt to Equity

1.71

—