| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 36 | 25.6x | 17.3x | Bottom tier | |
Growth | 24 | 2.2% | 7.1% | Bottom tier | |
Quality | 90 | 30.7% | 4.5% | Top tier | |
Safety | 85 | 0.4x | 2.6x | Top tier | |
Capital Return | 69 | 1.14% | 0.06% | Top tier | |
Momentum | 92 | 21.6% | -1.6% | Top tier | |
Sentiment | 71 | 13 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
68% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Williams-Sonoma operates through a specialized portfolio of furniture, home furnishings, kitchenware, and gifts, comprising Williams Sonoma, Pottery Barn, West Elm, and the children's business, alongside Rejuvenation, Mark & Graham, GreenRow, and Dormify. The company generates revenue from e-commerce and stores, as well as a business-to-business operation serving hotels, restaurants, multifamily housing, education, and aviation; in the second quarter of fiscal 2026, comparable e-commerce sales rose 6.5% and retail sales 5.5%, while the business-to-business operation grew 14.5%.
In the second quarter of fiscal 2026, net revenue reached $1.96 billion, up 6.7% year over year, and comparable brand revenue increased 6.2% compared with 4.8% in the first quarter of fiscal 2026. According to EDGAR data, gross profit was approximately $1 billion, net income was $338.1 million, and diluted earnings per share were $2.84, while non-GAAP results showed a gross margin of 45.5%, operating income of $338 million, an operating margin of 17.3%, and earnings per share of $2.10 after excluding the impact of tariff refunds.
Growth was broad-based in the second quarter of fiscal 2026: Williams Sonoma posted comparable growth of 7.6%, West Elm 6.4%, Pottery Barn 5.1%, and the children's business 3.5%, while emerging brands achieved double-digit growth. Within the business-to-business operation, the contract segment grew 20% and trade 12%, with contracts representing 36% of the operation, demonstrating that performance did not depend on a single brand or channel during the quarter.
The average analyst price target is $244.77, with a neutral consensus and a wide range between $190 and $275, compared with a 52-week stock range of $165.51 to $254.89. The average target is below the 52-week range high, while the highest target exceeds that high, a divergence reflecting analysts' balance between accelerating sales and raised guidance on one hand, and tariff and fuel pressure and economic uncertainty on the other. No usable earnings multiple is available in the provided data, so a supported assessment cannot be built on this metric.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Net revenue rose 6.7% to $1.96 billion, and comparable brand revenue accelerated to 6.2% from 4.8% in the first quarter of fiscal 2026. Williams Sonoma posted comparable growth of 7.6%, West Elm 6.4%, Pottery Barn 5.1%, and the children's business 3.5%. Growth also came from furniture and non-furniture, e-commerce, which grew 6.5%, and retail, which grew 5.5%.
Tariffs reduced merchandise margin by approximately 230 basis points in the second quarter of fiscal 2026 and contributed to an approximately 160-basis-point decline in gross margin to 45.5%. In contrast, supply chain efficiencies and occupancy leverage offset approximately 70 basis points of the pressure. The company received $200 million in refunds, but management excluded their impact from non-GAAP results and guidance because they were a one-time benefit.
The business-to-business operation grew 14.5% in the second quarter of fiscal 2026 and recorded its highest quarterly volume ever. The contract segment grew 20% and trade grew 12%, with contracts representing 36% of the operation. The company targets markets such as hotels, restaurants, multifamily housing, education, and aviation and sees a path to reaching $2 billion in revenue over several years without specifying an exact timeline.
Automated analysis for informational purposes only — not investment advice.
Since the beginning of fiscal 2026, engagement with Olive rose 700% and associated revenue increased 620%, while customers who engaged with it achieved a conversion rate three times the usual rate. The company launched Auto across the Pottery Barn family in August 2026, and the tool was able to handle more than 70% of interactions without transferring them to an employee. Visits personalized by the company also now generate about nine times the revenue of the average visit, compared with twice the amount in the previous year.
The company expects comparable brand revenue growth of between 4% and 6.5% and net revenue growth of between 4.7% and 7.2% in fiscal 2026. It expects an operating margin of between 17.8% and 18.2%, after raising both the lower and upper ends of its guidance. These expectations assume no material change in the macroeconomy, housing market turnover, or interest rates and do not include any benefit from tariff refunds.
The company paid dividends of $90 million in the second quarter of fiscal 2026, up 15% year over year, and maintained a quarterly dividend of $0.76 per share. This represents the seventeenth consecutive year in which it has increased its dividend. It also repurchased $288 million of shares from the beginning of fiscal 2026 through the end of the second quarter, with approximately $1.1 billion remaining under its authorizations, although it did not execute any repurchases during the quarter itself.