Williams-Sonoma beat first-quarter Wall Street estimates as it posted comparable store sales gains across its retail brand portfolio and higher consolidated earnings as it prepares for the back-to-school season, supported by its newly launched Dormify banner.
In addition to the financial results, Williams-Sonoma announced it promoted Jennifer Kellor to president of Pottery Barn, noting that her predecessor, Monica Bhargava, was leaving the company. Kellor has served as the president of the Pottery Barn children’s brands since 2016.
Net earnings were $231.4 million, or $1.93 per diluted share, versus $231.3 million, or $1.85 per diluted share, in the year-previous quarter.
A Zacks Investment Research published analyst consensus estimate put William-Sonoma Q1 earnings at $1.80 per diluted share and revenues at $1.80 billion.
Net revenue was $1.81 billion versus $1.73 billion in the year-prior quarter. Operating income was $291.7 million versus $290.7 million in the year-earlier period.
Consolidated comparable sales increased 4.8%. Comps gained 1% at Pottery Barn, 8.5% at West Elm, 5% at Williams Sonoma and 4.5% at Pottery Barn Kids and Teens.
Williams-Sonoma recently added Dormify (pictured above) as its 10th retail banner, and the company reported that the operation in general is well prepared for back-to-school/college.
The company reiterated its financial guidance for the fiscal year. In the fourth quarter, the company said it expected annual net revenue growth in the range of 2.7% to 6.7%, with comps up 2% to 6% and an operating margin between 17.5% and 18.1%.
Laura Alber, Williams-Sonoma CEO, said, “We are off to a strong start in 2026. In Q1, our comp came in at 4.8%, and we delivered an operating margin of 16.2% with earnings per share of $1.93. Every brand delivered positive comps in the quarter, driven by the strength of our portfolio, channels, and teams. We continue to outperform on both the top and bottom lines. We are delivering compounding results year after year despite the cyclical swings of the housing market and other macroeconomic events.”
