Williams-Sonoma's (WSM) initial 2026 guidance is "achievable" and Wall Street is expected to move its expectations higher after the company's Q4 results, RBC Capital Markets said in a Wednesday note.
RBC raised its 2026 comparable sales estimate to 3.2% from 2.7% previously, versus Williams-Sonoma's guidance range of 2% to 6%. RBC said it now expects 2026 adjusted earnings per share of $9.11, up from $8.94 previously.
RBC expects 2027 comparable sales to grow 4.6% and estimated adjusted EPS of $9.71, or 7% year-on-year growth.
With Williams-Sonoma guiding its 2026 operating margin between 17.5% to 18.1%, RBC said that at the mid-point, the company's estimate implies a 30 basis-point year-on-year deleverage.
The company's margin further assumes that all tariffs currently in effect will remain for the entirety of the year and does not assume any refund of the International Emergency Economic Powers Act tariffs, RBC said.
RBC raised its price target to $214 from $206 on the company and maintained its outperform rating.
Price: 181.62, Change: -2.48, Percent Change: -1.35
Comments