MILAN — Despite the geopolitical and macroeconomic challenges facing home, San Francisco-based home retailer Williams-Sonoma Inc. issued strong guidance on 2026 and a dividend increase.
On Wednesday, the firm’s board of directors authorized a 15 percent increase in the company’s quarterly cash dividend to $0.76 per common share, payable on May 22. “Our consistently strong earnings and cash flows has positioned us to provide these increased returns to our shareholders,” chief financial officer Jeff Howie said in a press release. Howie added that the firm has increased dividend payouts for 17 consecutive years.
In fiscal 2025, Williams-Sonoma Inc. maintained strong liquidity position of $1 billion in cash and $1.3 billion in operating cash flow enabling the company to deliver returns to stockholders of nearly $1.2 billion through $854 million in stock repurchases and $316 million in dividends.
For the full fiscal year, the firm said it expects annual net revenues to rise in a wide range, from 2.7 to up to 6.7 percent, paving the way for long-term growth momentum.
“Over the long term, we continue to expect mid- to high-single-digit annual net revenue growth with an operating margin in the mid- to high-teens,” the firm said in a press release.
“Our powerful portfolio of brands, strong channel execution and growth strategies drove our results in 2025. And in 2026, we are focused on accelerating growth, delivering world-class customer service, and driving earnings,” the company’s president and chief executive officer Laura Alber said.
Quarterly net revenues in the 13-week fiscal period ended Feb. 1 fell to $2.36 billion from $2.46 billion in the same period a year earlier. The firm’s gross margin of 46.9 percent topped a Factset estimate of 45.8 percent. Its earnings per share of 3.04 exceeded a Factset estimate of 2.90.
Aerin Lauder’s brand Aerin has deepened its collaboration with Williams Sonoma.
Williams Sonoma
Analysts like Cristina Fernandez of Telsey Advisory attributes Williams Sonoma’s resilience to structural benefits to Williams Sonoma’s business model. That model is rooted in revenue diversification across brands and product categories and a business that is split evenly between furniture and non-furniture, she explained.
“It [the results] proved that Williams-Sonoma can continue to deliver consistent growth,” Fernandez said in a note following the results. Telsey Advisory maintained an outperform rating and a target price of $220. Fernandez noted that the guidance assumes the current Section 122 tariffs continue for the remainder of the year.
“WSM continues to execute well in a challenging backdrop and we’re pleased with the small [fourth quarter] beat on both comps and margins,” said TD Cowen analyst Max Rakhlenko in a note. TD Cowen maintained a buy rating a target price of $250.
Sector wide, tariffs, the consumer spending and housing slowdown have gripped the home sector and its firms. In February, fellow U.S. based home firm Arhaus also guided strong on 2026, following a full-year performance that was boosted by new showroom openings and increased demand. The firm said it expects revenues to rise to $1.43 billion to $1.47 billion from the $1.38 billion in sales it posted in 2025.
Williams-Sonoma Inc. contends that it is the world’s largest digital-first, design-led and sustainable home retailer. The company’s brands include Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham and GreenRow. GreenRow was launched in 2023 and incorporates sustainable materials and manufacturing practices
Earlier this month, Williams-Sonoma Inc. announced it deepened its collaboration with Aerin, the lifestyle brand founded by Aerin Lauder. The new Aerin for Williams Sonoma and Aerin for Williams Sonoma Home collections include an assortment of products that draw inspiration from Lauder’s East Hampton, N.Y., garden. Aerin also has a Pottery Barn Teen and kids line.
