Williams-Sonoma, Inc.

Strong Q1 performance (beats and momentum) - Comp sales: +4.8% in Q1 (also noted that 1-year and 2-year comps accelerated vs Q4). - Top-line: Net revenues $1.81B. - Brand strength: Every brand delivered positive comps; notable performers included West Elm +8.5%, Williams Sonoma +5.0%, Pottery Barn +1.0%, Pottery Barn Kids +4.5%, with emerging brands (Rejuvenation double-digit, Mark & Graham double-digit) contributing. - Channel strength: E-commerce +4.8%, Retail +4.7%. - B2B: +13.7% overall (trade +9%, contract +22%), with record quarter language and strong pipeline/recognition at industry events (Hospitality Design Expo “best in show”).

Profitability: operating margin beat despite tariff + fuel headwinds - Operating margin: 16.2%, ahead of expectations. - EPS: $1.93 vs $1.85 last year (up ~4%). - Gross margin: 44%, down ~30 bps YoY, with merchandise margin down ~100 bps driven by tariffs; the company partially offset via supply-chain efficiencies (~+50 bps benefit) and occupancy leverage (~+20 bps). - Operational KPI emphasis: Supply chain target remains “perfect order on time, damage free every time,” framed as directly tied to customer satisfaction and cost efficiency.

Guidance (forecast) reiterated—no raise despite strong Q1 - Fiscal 26 net revenue comps: 2% to 6% (midpoint ~4%). - Total net revenue growth: 2.7% to 6.7%. - Operating margin: 17.5% to 18.1% (midpoint ~17.8%). - Key assumption: The outlook assumes no material macro changes (housing turnover, interest rates, geopolitics/fuel/tariff volatility). - Important modeling notes provided by management: - Tariffs: impact assumed front-half weighted and moderating later (given cost flow/accounting mechanics); guidance assumes tariffs in place remain for the year, including assumption of replacement for Section 122 tariffs if they expire (set to July) with “similar rate.” - Oil/fuel: higher fuel impacts are embedded at “today’s levels” for domestic transport; ocean freight pressures partially mitigated via scale. - Tariff refunds: not included due to uncertainty around timing/eligibility/recovery.