Williams-Sonoma's (WSM) Q2 results were once again strong with the company also raising its full-year outlook, RBC Capital Markets said in a note emailed Thursday.
The company is "gaining share, has proven its cost flexibility, and has a strong balance sheet, which in our view makes it deserving of the premium multiple," the note said.
RBC also noted that all of Williams-Sonoma's banners contributed to the comparable sales growth "even as the team continued to increase penetration of full priced selling."
Following the results, RBC raised the company's Q3 comparable sales estimate to growth of 4.7% from the previous estimate calling for growth of 2.7%, and the Q3 adjusted EPS estimate to $2.15 from the previous estimate of $2.06.
For 2026 and 2027, RBC now expects the company to deliver comparable sales growth of 5.3% and 4.6% respectively, compared with estimates calling for growth of 3.8% and 4.6% previously.
RBC kept Williams-Sonoma's outperform rating and $260 price target.
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