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Nov 20, 2025 4:00 PM

Williams-Sonoma's Tariff Bill Is Set To Jump, Analyst Warns

Williams-Sonoma Inc. (NYSE:WSM) posted another solid quarter, with resilient sales and industry-leading margins. However, the stock slipped as investors looked ahead to a sharply higher tariff bill that threatens to squeeze profitability heading into 2026.

Telsey Advisory Group analyst Cristina Fernández reaffirmed her Outperform rating on Williams-Sonoma but lowered her price forecast to $220 from $225, applying a ~24x P/E multiple to her updated 2026 EPS estimate.

She said the company delivered a good third quarter, with consistent comparable sales growth, strong full-price selling, and disciplined cost control that kept operating margins in the high teens.

Also Read: Williams-Sonoma Likely To Report Lower Q3 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

Fernández noted that comps have stayed within a 3.4% to 4.0% range for three ...