Williams-Sonoma: Share gainer with momentum; Reinstate at Buy

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Williams-Sonoma: Share gainer with momentum; Reinstate at Buy

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Williams-Sonoma

Share gainer with momentum; Reinstate at

Buy

Reinstating Coverage: BUY | PO: 250.00 USD | Price: 218.74 USD

A rare, quality compounder in consumer discretionary 12 June 2026

We are reinstating coverage with a Buy rating; we expect WSM will remain a structural Equity

share gainer. WSM is in a demographic sweet spot, luxury demand is soft, while lower-

income consumers remain pressured. WSM’s “affordable luxury” positioning targets a ChristopherResearch AnalystNardone

core customer with ~$150K household income, supporting relative resilience. The spread BofAS

between higher and lower income spending on furniture has widened in recent quarters +1christopher.nardone@bofa.com646 743 2016

per BAC aggregated credit and debit card data (roughly 7pts in 1Q26, Exhibit 4). Madeline Cech

Diversified portfolio: West Elm & B2B gaining steam ResearchBofAS Analyst

WSM revenue diversification across ten banners is a competitive advantage; the +1 646 855 5219

madeline.cech@bofa.com

portfolio includes Pottery Barn (PB, 38% of total sales), West Elm (24%), William

Sonoma (17%), and PB Kids & Teen (15%). We are most encouraged by the momentum

at West Elm due to its category expansion, product refreshes, and successful collabs; we

think the momentum is sustainable. B2B (15% of sales) is another compelling growth Stock Data

vector (led by contract) that is not dependent on home resi improvement.

Price 218.74 USD

Margins can build from here Price Objective 250.00 USD

OPM are up nearly 900bp since pre-Covid (1/3 due to full price selling, 1/3 supply chain, Date Established 12-Jun-2026

and 1/3 from e-comm & retail optimization); we think margins can build from here. Near Investment Opinion C-1-7