Williams-Sonoma slides as investors weigh margin pressure after strong quarterly results

Williams-Sonoma (WSM) is down 3.6% today. Here is some analysis on what might have caused this price movement.

Analysis: The drop appears tied to a post-earnings pullback rather than a clear business miss. Williams-Sonoma posted stronger second-quarter sales, earnings, and a higher full-year outlook, but investors seem focused on softer underlying merchandise margins, tariff-related pressure, and the possibility that much of the good news had already been priced into the stock after a strong run.

Details:

Williams-Sonoma announced second-quarter fiscal 2026 revenue of about $1.96 billion, non-GAAP EPS of $2.10, and comparable brand revenue growth of 6.2%, while also raising its full-year revenue, comp-sales, and operating-margin outlook.

The company’s non-GAAP gross margin was 45.5%, down from last year, with lower merchandise margins primarily driven by tariff costs.

The quarter included a large tariff-refund benefit on a GAAP basis, which may have led some investors to look past the headline beat and focus more on the core operating picture.

This could also be because traders took profits after the stock had climbed sharply before earnings, leaving little room for upside even with a solid report.

Sources:

Williams-Sonoma Investor Relations, SEC, Yahoo Finance

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$WSM Insider Trading Activity

$WSM insiders have traded $WSM stock on the open market 34 times in the past 6 months. Of those trades, 0 have been purchases and 34 have been sales.

Here’s a breakdown of recent trading of $WSM stock by insiders over the last 6 months:

LAURA ALBER (PRESIDENT & CEO) has made 0 purchases and 16 sales selling 105,000 shares for an estimated $20,860,866.
JEFFREY HOWIE (EVP CHIEF FINANCIAL OFFICER) has made 0 purchases and 12 sales selling 34,103 shares for an estimated $6,171,317.
KARALYN YEAROUT (EVP CHIEF TALENT OFFICER) has made 0 purchases and 6 sales selling 5,423 shares for an estimated $1,175,065.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.

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$WSM Hedge Fund Activity

We have seen 481 institutional investors add shares of $WSM stock to their portfolio, and 497 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

FMR LLC removed 2,538,686 shares (-61.1%) from their portfolio in Q2 2026, for an estimated $591,767,706
NUVEEN, LLC added 848,272 shares (+134.1%) to their portfolio in Q2 2026, for an estimated $197,732,203
SIXTH STREET PARTNERS MANAGEMENT COMPANY, L.P. added 779,781 shares (+inf%) to their portfolio in Q2 2026, for an estimated $181,766,951
JPMORGAN CHASE & CO added 593,806 shares (+inf%) to their portfolio in Q2 2026, for an estimated $138,416,178
D. E. SHAW & CO., INC. removed 501,534 shares (-35.8%) from their portfolio in Q2 2026, for an estimated $116,907,575
UBS GROUP AG added 395,199 shares (+52.8%) to their portfolio in Q2 2026, for an estimated $92,120,886
PACER ADVISORS, INC. removed 355,269 shares (-96.1%) from their portfolio in Q2 2026, for an estimated $82,813,203

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$WSM Price Targets

Multiple analysts have issued price targets for $WSM recently. We have seen 13 analysts offer price targets for $WSM in the last 6 months, with a median target of $218.0.

Here are some recent targets:

Bradley Thomas from Keybanc set a target price of $250.0 on 07/07/2026
Oliver Wintermantel from Evercore ISI Group set a target price of $230.0 on 06/23/2026
Christopher Nardone from B of A Securities set a target price of $250.0 on 06/12/2026
Zachary Fadem from Wells Fargo set a target price of $190.0 on 05/22/2026
Steven Shemesh from RBC Capital set a target price of $192.0 on 05/22/2026
Seth Sigman from Barclays set a target price of $190.0 on 05/22/2026
Simeon Gutman from Morgan Stanley set a target price of $210.0 on 05/22/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.