With a market cap of $19.4 billion, Williams-Sonoma, Inc. (WSM) operates as an omni-channel specialty retailer of various products for home. Founded in 1956, the San Francisco, California-based company offers cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks.
Shares of the retail giant have outperformed the broader market over the past year but have underperformed in 2025. WSM stock has surged 10.9% over the past 52 weeks and has declined 14.8% on a YTD basis. In comparison, the S&P 500 Index ($SPX) has returned 10.2% over the past year and declined 1.3% in 2025.
Narrowing the focus, WSM has outperformed the SPDR S&P Retail ETF’s (XRT) 1.2% rise over the past 52 weeks but has lagged behind its 6.2% fall this year.
WSM stock declined 4.5% following the release of its Q1 earnings on May 22. The company’s net revenue rose 4.2% year-over-year to $1.7 billion. Moreover, its operating margin reached 16.8%, 70 basis points higher than the prior year. WSM’s adjusted earnings for the quarter came in at $1.85 and surpassed the consensus estimates by 5.1%.
For the current year ending in January 2026, analysts expect WSM’s EPS to decrease 3.6% year over year to $8.47. On the bright side, the company has surpassed analysts’ consensus estimates in each of the past four quarters, which is impressive.
Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, one “Moderate Buy,” and 12 “Holds.”
The configuration is more bullish than three months ago, when only three analysts recommended a “Strong Buy.”
On May 22, Telsey Advisory Group analyst Cristina Fernandez reaffirmed an "Outperform" rating on Williams-Sonoma and maintained the price target at $215, which is also the Street-high target. WSM’s mean price target of $183 indicates a premium of 15.9% from the current market prices.
