Williams-Sonoma, Inc. (NYSE:WSM) reported first-quarter fiscal 2026 results on Thursday, posting revenue and earnings above Wall Street estimates as comparable brand revenue rose 4.8%.
The home furnishings retailer reported net revenues of $1.805 billion, up 4.4% from $1.730 billion a year earlier, topping analyst estimates of $1.793 billion.
Diluted GAAP EPS rose 4.3% to $1.93, beating estimates of $1.82. The stock traded higher following the results.
Williams-Sonoma Margin Performance And Profitability
Net earnings were $231.4 million, compared with $231.3 million a year earlier.
Operating income totaled $291.7 million, while operating margin narrowed to 16.2% from 16.8%.
Gross margin declined 30 basis points to 44.0%, driven by lower merchandise margins, partially offset by supply chain efficiencies and occupancy leverage.
“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% …