Report published August 26, 2026
Williams-Sonoma Inc. (WSM): Goldman Sachs Research Report & Rating Analysis
Source and citation context
- Issuer
- Goldman Sachs
- Report date
- August 26, 2026
- Analysis as of
- August 26, 2026
Authors / editors: Kate McShane, CFA, Grace Chee, Emily Ghosh, Mark Jordan, CFA, Nishi Agarwal, Samantha Chiang
Finvaulta summarizes Goldman Sachs's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Goldman Sachs reiterates its Buy rating on Williams-Sonoma and lifts its 12-month price target to $279 from $261 following a 2Q comp beat and raised FY26 guidance. Top-line momentum is supported by strong product innovation, collaborations, and market share gains, while tariff headwinds to gross margin are expected to moderate in 2H.
Key Takeaways
- 1.Williams-Sonoma delivered a 2Q comp beat (+6.2% vs. +5.0%/+4.5% GS/consensus) across banners, supported by product innovation, collaborations, and strength in both DTC and retail channels.
- 2.Gross margins were pressured by tariffs in 2Q, but tariff impacts are expected to peak and moderate through 2H26 alongside ongoing supply chain efficiencies.
- 3.Management raised FY26 guidance for revenue growth, comps, and operating margins, citing core business momentum, store expansion, and multi-year market share runway in an $820bn TAM.
Table of Contents
- Key Takeaways
- Estimate Changes
- Valuation & Risks
- Disclosure Appendix
Report data
Exhibit 5: WSM Estimate Change Summary — as of August 26, 2026.
| Metric | Estimate | Context |
|---|---|---|
| 12-Month Price Target | 279.0 USD | Raised from $261 prior based on higher earnings estimates and a 22.6x market multiple. |
| Comparable Sales Growth | 6.2% | Above Goldman Sachs estimate of +5.0% and FactSet consensus of +4.5%. |
| Adjusted Gross Margin | 45.5% | Excludes tariff refunds; compares to GS/consensus of 45.6%/45.9%. |
| FY26 Revenue Growth Guidance | 4.7% to 7.2%% | Raised guidance reflecting strong momentum across banners. |
| FY26 Operating Margin Guidance | 17.8% - 18.2%% | Excludes tariff refunds; 2H operating margin is +30 bps higher y/y at midpoint. |
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Authors / Editors
Reported Data Context
- 12-Month Price Target: 279.0 USD (12-month forward) · Source: Goldman Sachs Global Investment Research
- Comparable Sales Growth: 6.2 % (2Q26) · Source: Company data, FactSet
- Adjusted Gross Margin: 45.5 % (2Q26) · Source: Company data
- FY26 Revenue Growth Guidance: 4.7% to 7.2% % (FY26) · Source: Company data
- FY26 Operating Margin Guidance: 17.8% - 18.2% % (FY26) · Source: Company data
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