Williams-Sonoma (WSM) Stock Forecast & Price Target

Williams-Sonoma reported a 4.6% year-over-year increase in total sales, reaching $1.88 billion, demonstrating resilient consumer demand across its product offerings. The company achieved a slight expansion in operating margin, increasing by 1 basis point to 17.0%, which outperformed comparable figures from the sector. Furthermore, the B2B segment showed robust growth with a 9% increase in sales, contributing to an anticipated $1 billion in revenue for 2024, highlighting the company's strategic focus on expanding its market opportunities.

Williams-Sonoma has reported a notable increase in costs, with around $48 million attributed to higher tariff expenses compared to $20 million in the previous quarter, leading to uncertainty about the financial implications of tariffs that has negatively impacted stock performance. Although the company has revised its 2026 EPS estimate down from $9.20 to $9.05 under a backdrop of challenging macroeconomic conditions and a normalization in the home furnishings category post-pandemic, sales growth is projected at a relatively modest 4.3%. The management's optimism about maintaining operating margins may be countered by risks associated with potential shifts in consumer spending behavior towards services and entertainment, complicating the revenue outlook.