Williams Sonoma Inc (NYSE:WSM) posted first-quarter 2026 revenue of $1.81 billion, up 4.4% year over year and slightly ahead of analyst estimates of $1.80 billion, as comparable sales growth across all four major brands signaled broad demand for premium home furnishings.
Net income was $231.4 million, flat compared to the prior-year period, while operating margin came in at 16.2%, down 60 basis points year over year due to higher selling, general and administrative costs.
The company beat earnings per share estimates by approximately $0.13, or roughly 7%.
West Elm was the standout performer with comparable sales growth of 8.5%, which Jefferies analysts attributed in part to initial buzz surrounding a collaboration with influencer Emma Chamberlain. The Williams Sonoma brand posted 5% comparable growth, Pottery Barn Kids and Teen rose 4.5%, and Pottery Barn added 1%.
Gross margin of 43.9% came in ahead of consensus, as supply chain efficiencies and occupancy expense leverage offset merchandise margin pressure. SG&A as a percentage of sales was 27.8%, missing estimates due to higher employment and general and administrative expenses.
Operating cash flow rose 31.4% to $156.3 million, and the company returned $373 million to shareholders during the quarter.
Inventories increased 9% year over year to $1.46 billion, which the company characterized as supporting future growth.
For fiscal 2026, Williams Sonoma maintained its revenue growth outlook of 2.7% to 6.7% and an operating margin range of 17.5% to 18.1%. Jefferies noted the guidance assumes elevated oil prices, no tariff refunds, and all existing tariffs remaining in place.
The company also announced a leadership change at Pottery Barn, promoting Jennifer Kellor to president. Monica Bhargava is no longer with the company.