Williams-Sonoma (WSM) is expected to reach the top end of its full-year margin guidance with fiscal Q2 earnings mostly in line with market estimates, BofA Securities said Monday in a report.
BofA expects Q2 adjusted EPS of $2.08, close to the consensus of $2.10 per share, with aggregated credit-card data showing acceleration in online furniture spending from the previous quarter, driven by higher-income consumers despite macro uncertainty in the sector and weak housing turnover. The company's results are due Wednesday.
West Elm traffic remained strong in Q2, while Pottery Barn trends improved with the brand aiming to build on that traction heading into the holiday period.
In H2, tariff pressure is expected to be partly offset by supply-chain efficiencies and lower costs, the report said.
BofA raised its price target on Williams-Sonoma stock to $261 from $250 and maintained its buy rating.
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