Williams-Sonoma, Inc. (WSM)
NYSEConsumer DiscretionarySpecialty RetailSnapshot 2026-07-07
$222.49-0.60%
Close 2026-07-07 · 1-day change
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Track WSM free→Warn: Management is running behind on a stated commitment.
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
The Board of Directors authorized a 15% increase in the quarterly cash dividend.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Newly stated in 2025-Q4. The Board authorized a 15% increase in the quarterly cash dividend, raising it from $0.66 to $0.76 per share. This reflects a strategic capital allocation decision, with the dividend increase being implemented as planned.
“The Board authorized a 15% increase in the quarterly cash dividend.”
Breaks if: Operating margin falls below 17.5% in FY26
Continue to focus on maintaining an operating margin between 17.5% and 18.1% for fiscal 2026.
Stated in 4 of last 4 quarters. Operating margin guidance remains between 17.5% to 18.1% for fiscal 2026. The company has consistently reiterated this range, indicating a stable focus on cost management. The trajectory is delivering as planned.
“We expect an operating margin between 17.5% to 18.1%.”
“We expect an operating margin between 17.5% to 18.1%.”
“We now expect an operating margin between 17.8% to 18.1%.”
“We expect an operating margin between 17.4% to 17.8%.”
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.
Stated in 3 of last 3 quarters. Revenue guidance for fiscal 2026 is set between 2.7% to 6.7%. The company has consistently reiterated this target, showing a commitment to growth. The trajectory is on track with the stated guidance.
“We expect annual net revenues in the range of +2.7% to +6.7%.”
“We expect annual net revenues in the range of +2.7% to +6.7%.”
“We now expect annual net revenues in the range of +0.5% to +3.5%.”