Business
Williams-Sonoma announces strong first quarter 2026 results
Williams-Sonoma announces strong first quarter 2026
About this update from Williams-sonoma, Inc.
[{"type":"text","content":"SAN FRANCISCO- Williams-Sonoma, Inc. (NYSE: WSM) today announced operating results for the first quarter ended May 3, 2026 versus the first quarter ended May 4, 2025.\n* Q1 comparable brand revenue +4.8%\n* Q1 operating margin of 16.2%; diluted EPS of $1.93\n* Reiterates full-year outlook\n'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 a positive comp in the quarter, driven by the strength of our portfolio, our channels, and our teams,' said Laura Alber, President and Chief Executive Officer.\nAlber concluded, '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. We believe our strong brands, our proven ability to execute our vision, and our relentless focus on customer service will allow us to accomplish our goals in 2026 and beyond.'\nFIRST QUARTER 2026 HIGHLIGHTS\nComparable brand revenue +4.8%.\nGross margin of 44.0% -30bps to LY driven by (i) lower merchandise margins of -100bps, partially offset by (ii) supply chain efficiencies of +50bps and (iii) occupancy leverage of +20bps. Occupancy costs of $204 million, +3.0% to LY.\nSG&A rate of 27.8% +30bps to LY driven by (i) higher employment expense of +30bps and (ii) higher general expenses of +10bps, partially offset by (iii) advertising expense leverage of -10bps. SG&A of $502 million, +5.6% to LY.\nOperating income of $292 million with an operating margin of 16.2%. -60bps to LY.\nDiluted EPS of $1.93 per share. +4.3% to LY.\nMerchandise inventories +9.0% to the first quarter LY to $1.46 billion, including incremental tariff costs of approximately $60 million.\nMaintained strong liquidity position of $652 million in cash and $156 million in operating cash flow enabling the company to deliver returns to stockholders of $373 million through $288 million in stock repurchases and $85 million in dividends.\nOUTLOOK\nWe are reiterating our fiscal 2026 and long-term guidance.\nIn fiscal 2026, we expect annual net revenues in the range of +2.7% to +6.7%, with comps in the range of +2.0% to +6.0%; and an operating margin between 17.5% to 18.1%.\nOur guidance assumes (i) oil prices will remain elevated for fisca...