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Williams-Sonoma’s $200 Million Tariff Refund — How Much Of The Margin Story Is Sustainable?

Williams-Sonoma, Inc. reported a solid performance in its second quarter of fiscal 2026, with comparable brand revenue growth accelerating to 6.2% and total revenue rising 6.7% year-over-year. This broad-based growth spanned all of the company’s brands, channels, and product categories, with positive comps in both furniture and non-furniture segments. Notably, the Williams Sonoma brand led with a 7.6% comp, West Elm followed closely with 6.4%, and Pottery Barn showed significant improvement posting a 5.1% comp. Emerging brands, including Rejuvenation, Mark and Graham, and GreenRow, delivered double-digit growth, and the business-to-business (B2B) segment recorded a record-breaking 14.5% growth. The company’s e-commerce and retail channels also contributed robustly, posting 6.5% and 5.5% comps, respectively, while gaining market share in a largely flat home furnishings industry. On profitability, Williams-Sonoma, Inc. achieved an operating margin of 17.3%, with earnings per share increasing 5% to $2.10 despite the peak tariff impact in this quarter.