--- title: "Williams-Sonoma Says Outlook Hike Is Operational—Not Fueled By Tariff Refund" type: "News" locale: "en" url: "https://longbridge.com/en/news/297072085.md" description: "Williams-Sonoma (WSM) reported Q2 2026 earnings beating estimates, with $1.96B revenue and adjusted EPS of $2.10. The company raised its full-year outlook, forecasting comparable revenue growth of 4% to 6.5% and net revenue of $8.17B-$8.37B. Management emphasized the upgrade reflects operational momentum rather than tariff refunds, which contributed significantly to GAAP margins but are excluded from non-GAAP guidance." datetime: "2026-08-26T16:32:27.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/297072085.md) - [en](https://longbridge.com/en/news/297072085.md) - [zh-HK](https://longbridge.com/zh-HK/news/297072085.md) generator: "portal-rs" --- # Williams-Sonoma Says Outlook Hike Is Operational—Not Fueled By Tariff Refund **Williams-Sonoma, Inc.** (NYSE:WSM) reported better-than-expected second-quarter 2026 results Wednesday and raised its full-year outlook. Net revenue rose 6.7% year over year to $1.96 billion, beating the $1.93 billion estimate. Adjusted diluted earnings increased 5% to $2.10 per share, topping the $2.08 estimate. GAAP diluted earnings jumped 42% to $2.84 per share. ## Brand Growth Broadens Comparable brand revenue increased 6.2%, with growth across all major brands. Pottery Barn revenue rose to $770.8 million, while comparable sales increased 5.1%. West Elm revenue reached $496.3 million, with comparable sales up 6.4%. Williams Sonoma revenue increased to $268.8 million, with comparable sales rising 7.6%. Pottery Barn Kids and Teen revenue totaled $297.4 million, while comparable sales grew 3.5%. ## Tariffs Shape Margins GAAP gross margin expanded 450 basis points to 51.6%. IEEPA tariff refunds, occupancy leverage and supply chain efficiencies supported the increase. However, adjusted gross margin fell 160 basis points to 45.5%. Tariff costs drove a 230-basis-point decline in merchandise margins. GAAP operating income rose to $448.8 million, producing a 22.9% operating margin. Adjusted operating income totaled $338.5 million, while the adjusted margin fell 60 basis points to 17.3%. The quarter included $167.8 million in IEEPA tariff refund income and $6.3 million in related interest. A $47.5 million vendor reimbursement provision and a one-time $10 million employee recognition expense partly offset those benefits. Williams-Sonoma deferred another $29.3 million in tariff refund income, which it expects to recognize in the third quarter. ## Cash Flow And Inventory Merchandise inventories rose 1% year over year to $1.45 billion. Williams-Sonoma ended the quarter with 508 stores, compared with 509 a year earlier. Operating cash flow totaled $695.9 million during the first 26 weeks of the year. That amount included $200.2 million in collected tariff refunds and related interest. Cash and cash equivalents totaled $1.03 billion at the end of the quarter. The company returned $90 million to shareholders through dividends. **Read Also: Williams-Sonoma Gears Up For Q2 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts** ## Williams-Sonoma Raises 2026 Outlook Williams-Sonoma raised its fiscal 2026 comparable revenue growth forecast to 4% to 6.5%. It now expects net revenue to grow 4.7% to 7.2%. The company lifted its sales forecast to $8.17 billion to $8.37 billion from $8.02 billion to $8.33 billion. The midpoint is above the $8.18 billion analyst estimate. Williams-Sonoma expects an adjusted operating margin of 17.8% to 18.2%. Williams-Sonoma stressed that its upgraded outlook reflects underlying business momentum rather than its $200 million tariff refund. The company said its non-GAAP guidance excludes the refund and related interest, calling the increase “operational.” It now expects comparable brand revenue growth of 4% to 6.5% and an operating margin of 17.8% to 18.2%. The forecast assumes current tariffs remain in place, oil prices stay elevated and the company receives no benefit from tariff refunds or related interest. Over the long term, Williams-Sonoma continues to target mid- to high-single-digit annual net revenue growth and a mid- to high-teens operating margin. ## Williams-Sonoma Price Action **WSM Price Action:** Williams-Sonoma shares were up 0.11% at $235.00 at the time of publication on Wednesday, according to Benzinga Pro data. *Photo via Shutterstock* ### Related Stocks - [WSM.US](https://longbridge.com/en/quote/WSM.US.md) ## Related News & Research - [Should Williams-Sonoma’s (WSM) Upgraded 2026 Outlook Amid Tariffs Require Action From Investors?](https://longbridge.com/en/news/298137578.md) - [These Analysts Increase Their Forecasts On Williams-Sonoma Following Strong Q2 Results](https://longbridge.com/en/news/297197393.md) - [Williams-Sonoma’s Quarter Gave Bulls More Than Just a Beat-and-Raise](https://longbridge.com/en/news/297079858.md) - [A Rain Check for Williams-Sonoma: How to Buy the Dip Before It Happens](https://longbridge.com/en/news/294993407.md) - [Williams-Sonoma, Inc. (NYSE:WSM) Given Consensus Recommendation of "Moderate Buy" by Brokerages](https://longbridge.com/en/news/296590473.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**