Williams-Sonoma misses Q4 preliminary revenue estimates

Overview

• US home furnishings retailer's preliminary fiscal Q4 revenue missed analyst expectations

• Adjusted EPS for preliminary fiscal Q4 beat analyst expectations

• Company raised quarterly dividend by 15% to $0.76 per share

Outlook

• Williams-Sonoma expects fiscal 2026 net revenue growth of 2.7% to 6.7%

• Company sees fiscal 2026 comparables rising 2.0% to 6.0%

• Williams-Sonoma projects fiscal 2026 operating margin between 17.5% and 18.1%

Result Drivers

• BRAND PERFORMANCE MIX - Williams Sonoma and Pottery Barn Kids/Teen posted Q4 comparable revenue growth, while Pottery Barn declined; overall comparable brand revenue rose 3.2%

• GROSS MARGIN PRESSURE - Gross margin fell 40bps year-over-year, mainly due to lower merchandise margins and occupancy deleverage, partially offset by supply chain efficiencies and favorable inventory results

• TARIFF IMPACT - Merchandise inventories rose 9.8% year-over-year, driven by incremental tariff costs of approximately $80 mln

Company press release: ID:nBw3vzckla

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 15 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the home furnishings retailers peer group is "buy"

• Wall Street's median 12-month price target for Williams-Sonoma Inc is $206.00, about 13.1% above its March 17 closing price of $182.17

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.