NYSEConsumer DiscretionarySpecialty RetailSnapshot 2026-08-31
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Create your account →Intact: The reason to own it still holds.
Williams-Sonoma grows sales about 3% to 7% a year. Profit margins stay near 18%. The company raised its quarterly dividend by 15%. Recent earnings beats show strong execution despite a cautious outlook.
Revenue growth slows below 3%. Profit margins fall under 17.5%. Rising costs pressure earnings and dividend growth. The recent guidance cut signals tougher conditions ahead.
The stock price is about 41% above our valuation model and 20% below the Street median. Analysts expect roughly 10% revenue growth, which is higher than recent company guidance. Our view is more cautious on growth and margin sustainability.
Breaks if: Dividend growth stalls or reverses in FY26
Breaks if: Operating margin falls below 17.5% in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on steady revenue growth and cash returns. The current thesis state is intact, as recent financial performance remains strong within its industry.
The market has priced WSM at an expensive valuation, reflecting a durable premium compared to peers. There is an expectations gap of 0.32, indicating that investors may anticipate continued strong performance.
Management is on track to achieve revenue growth and maintain operating margins within their stated targets. The near-term risk of missing estimates is low, but recent industry performance has been mixed.
The long-term thesis hinges on management's ability to maintain guidance and control margins. Additionally, external factors like inflation trends and performance of sector peers will play a crucial role in shaping future outcomes.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The company reported a strong fiscal Q2 2026 performance. Comparable sales jumped 6.2%, indicating strong demand across its brands. Additionally, revenue growth guidance for fiscal 2026 was raised to 2.7% to 6.7%. The market's expectation for the company's growth is now better supported.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Continue to focus on maintaining an operating margin between 17.5% and 18.1% for fiscal 2026.
Breaks if: YoY revenue growth falls below 2.7% in FY26
Aim to achieve revenue growth between 2.7% and 6.7% for fiscal 2026.
Overall, WSM's fundamentals appear stable, but the expensive valuation and external risks warrant careful observation. Not investment advice.
