WSM - Broad-Based Strength (Segment, Banner, Channel, & Category) to Start 2026—Reiterating Estimates; NEUTRAL on Valuation

研报英文原文证据摘录

WSM - Broad-Based Strength (Segment, Banner, Channel, & Category) to Start 2026—Reiterating Estimates; NEUTRAL on Valuation

May 26, 2026

Steven Forbes, CFA, CPA steven.forbes@guggenheimpartners.com WSM - Broad-Based Strength (Segment, Banner,

212 381 4188 Channel, & Category) to Start 2026—Reiterating

John Heinbockel

john.heinbockel@guggenheimpartners.com Estimates; NEUTRAL on Valuation

212 381 4135

Julio Marquez Key Message: As detailed within Exhibit 1, WSM delivered a broad-based 1Q 2026 julio.marquez@guggenheimpartners.com beat (versus our expectations), driven by comp acceleration (including e-commerce)— 212 823 6605

with every brand posting positive comps (West Elm: +8.5%, Williams Sonoma: +5.0%,

Jacob Nivasch Pottery Barn Children's: +4.5%, and Pottery Barn +1.0%). In addition, despite onboarding

jacob.nivasch@guggenheimpartners.com incremental tariff-related input cost pressures coupled with rising fuel costs, gross margin

212 338 8837 only eroded 30-35 basis points—exceeding our forecast by ~114 basis points. When

Max Horowitz combined with solid expense control on the back of rising input cost pressures—noting

max.horowitz@guggenheimpartners.com lower-than-we-expected expense leverage—we believe WSM's ability to profitably gain

212 518 9974 market share should help support our 2H 2026 (and out-year) incremental margin

expectations. We provide some additional thoughts below and modestly raise our

estimates accordingly—while reiterating our NEUTRAL-rating on valuation.

Broad-Based Strength (Segment, Banner, Channel, & Category) to Start 2026—WSM NEUTRAL

Williams-Sonoma Inc. EBIT Margin Compression Less-Than-We-Expected. As detailed within Exhibit 1,

Sector: Hardlines WSM delivered a broad-based 1Q 2026 beat (versus our expectations), driven by comp