Williams-Sonoma, Inc. announces strong second quarter 2026 results
San Francisco, CA, August 26, 2026 – Williams-Sonoma, Inc. (NYSE: WSM) today announced operating results for the second quarter ended August 2, 2026 versus the second quarter ended August 3, 2025.
“We delivered a very strong second quarter. In Q2, our comp came in at 6.2%, with total revenue growth of 6.7%, and we drove an operating margin of 17.3% with earnings per share of $2.10. Every brand delivered again in the quarter, driven by strong execution across our brands, our channels, and our team,” said Laura Alber, President and Chief Executive Officer.
Alber concluded, “Our strategies continue to gain momentum, and our results reflect the power of our execution. We gained market share, continued to outperform the industry, and raised our annual outlook on both the top and bottom lines. We are delivering compounding results despite the housing market and other macroeconomic events, and we remain confident in our priorities and plans for the remainder of 2026 and beyond.”
• Gross margin of 51.6% on a GAAP basis, +450bps to LY driven by (i) IEEPA tariff refunds, net of tariff-related vendor concessions, of +610bps, (ii) occupancy leverage of +40bps, and (iii) supply chain efficiencies of +30bps, partially offset by (iv) lower merchandise margins of -230bps primarily driven by tariff costs. Occupancy costs of $208 million, +3.3% to LY.
• Gross margin of 45.5% on a non-GAAP basis, -160bps to LY driven by (i) lower merchandise margins of -230bps primarily driven by tariff costs, partially offset by (ii) supply chain efficiencies of +30bps, and (iii) occupancy leverage of +40bps. Occupancy costs of $208 million, +3.3% to LY.
• SG&A rate of 28.7% on a GAAP basis, -50bps to LY driven by (i) employment expense leverage, net of a one-time tariff-related employee recognition cost in the form of a discretionary 401(k) contribution, of -70bps, partially offset by (ii) higher general expenses of +10bps, and (iii) higher advertising expenses of +10bps. SG&A of $563 million, +5.0% to LY on a GAAP basis.
• SG&A rate of 28.2% on a non-GAAP basis, -100bps to LY driven by (i) employment expense leverage of -120bps, partially offset by (ii) higher general expenses of +10bps, and (iii) higher advertising expenses of +10bps. SG&A of $553 million, +3.1% to LY on a non-GAAP basis.
• Operating income of $449 million with an operating margin of 22.9% on a GAAP basis; or $338 million with an operating margin of 17.3% on a non-GAAP basis. +500bps to LY on a GAAP basis and -60bps to LY on a non-GAAP basis.
• GAAP diluted EPS of $2.84 per share, or $2.10 on a non-GAAP basis. +42.0% to LY on a GAAP basis and +5.0% to LY on a non-GAAP basis.
• Merchandise inventories +1.0% to the second quarter LY to $1.45 billion, net of $29.3 million of deferred tariff refund income recorded as a reduction of inventory.
• Maintained strong liquidity position of $1.0 billion in cash and $696 million in operating cash flow, inclusive of the collection of $200.2 million of tariff refunds and the related interest, enabling the company to deliver returns to stockholders of $90 million through dividends. 1
During the second quarter of fiscal 2026, we recognized income from the refund of previously paid International Emergency Economic Powers Act (“IEEPA”) tariffs. During the quarter, we recorded (i) a reduction of cost of goods sold of $167.8 million related to refunds received for tariffs that have been previously expensed and (ii) related interest income of $6.3 million. This income was partially offset by (i) a provision of $47.5 million to reimburse certain merchandise vendors that previously provided tariff-related concessions and (ii) a one-time tariff-related employee recognition cost of $10.0 million, in the form of a discretionary 401(k) contribution to all eligible employees. As of August 2, 2026, we deferred $29.3 million of the tariff refund income as a reduction of merchandise inventories, which we anticipate recognizing as a reduction to cost of goods sold in the third quarter of fiscal 2026. Substantially all of our initial refund claim of $197.8 million has been collected as of August 2, 2026, with a remaining tariff refund receivable of $3.2 million. We have adjusted all of these tariff-related items as non-GAAP adjustments. See Exhibit 1 for our GAAP to non-GAAP reconciliation.
• We are raising our fiscal 2026 guidance to reflect our year-to-date strong performance.
• In fiscal 2026, we now expect annual net revenues in the range of +4.7% to +7.2%, with comps in the range of +4.0% to +6.5%; and an operating margin, on a non-GAAP basis, between 17.8% to 18.2%.
• Our guidance assumes (i) all tariffs currently in place will remain for fiscal 2026, including the Section 232 tariffs, the existing Section 301 tariffs, the new Section 301 tariffs announced on July 23rd, and the latest tariffs between Canada and the United States, (ii) oil prices will remain elevated for the remainder of the year, and (iii) no benefit from tariff refunds or related interest.
• For fiscal 2026, we expect annual interest income of approximately $25 million and an effective tax rate of approximately 26%, both on a non-GAAP basis.
• Over the long term, we continue to expect mid-to-high single-digit annual net revenue growth with an operating margin in the mid-to-high teens.
Williams-Sonoma, Inc. will host a live conference call today, August 26, 2026, at 7:00 A.M. (PT). The call will be open to the general public via live webcast and can be accessed at http://ir.williams-sonomainc.com/events . A replay of the webcast will be available at http://ir.williams-sonomainc.com/events .
Jeremy Brooks SVP, Chief Accounting Officer & Head of Investor Relations – (415) 733 2371 2
This press release and our accompanying earnings call include non-GAAP financial measures. Exhibit 1 provides reconciliations of these non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). We have not provided a reconciliation of non-GAAP measures to the most directly comparable GAAP measures on a forward-looking basis as we cannot do so without unreasonable efforts due to the potential variability and limited visibility of excluded items; these excluded items may include exit costs, reduction-in-force initiatives, impairment, early termination charges and other non-recurring or non-operational income or expenses. For the same reasons, we are unable to address the probable significance of any such excluded items. We believe that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of current period performance on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. In addition, certain other items may be excluded from non- GAAP financial measures when the company believes this provides greater clarity to management and investors. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for or superior to the GAAP financial measures presented in this press release and our financial statements and other publicly filed reports. Such non-GAAP measures may not be comparable to similarly titled measures used by other companies.
This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or are proven incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include, among other things, statements in the quotes of our President and Chief Executive Officer, our fiscal year 2026 outlook and long- term financial targets, and statements regarding our industry trends and business strategies.
The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include: our ability to provide products that are designed and built for durability and longevity at competitive prices; changes in and the related impact of U.S. (federal, state and local) and international tax laws, trade policies and regulations; our ability to mitigate current and future tariffs; factors, including but not limited to general economic conditions, inflationary pressures, consumer disposable income, rising fuel prices, recession and fears of recession, unemployment, war and fears of war, adverse weather, availability of consumer credit, conditions in the housing market, elevated interest rates, and consumer confidence in current and future economic conditions that can affect consumer spending; the plans, strategies, initiatives and objectives of management for future operations; our ability to execute strategic priorities and growth initiatives; our beliefs about our competitive advantages and areas of potential future growth in the market; the impact of periods of decreased home purchases; our ability to anticipate consumer preferences and buying trends; factors, including but not limited to fuel costs, labor disputes, union organizing activity, geopolitical instability, and acts of terrorism and war, that can affect the global supply chain; effective inventory management; timely and effective sourcing and delivery of merchandise from our suppliers; our ability to respond to the growing use of and to adopt new technologies, including artificial intelligence; our belief in the reasonableness of the steps taken by us and our suppliers to protect the security and confidentiality of the information we collect; multi-channel and multi-brand complexities; our brands, products, retail and related initiatives, including our ability to introduce new products, product lines, brands and brand extensions, and bring in new customers; challenges associated with our global presence and expansion efforts; our ability to control employment, advertising, occupancy, and other operating costs; payment of dividends; our ability to drive long-term sustainable returns; our capital allocation strategy in fiscal 2026; our planned use of cash in fiscal 2026; projections of earnings, revenues, growth and other financial items; and other risks and uncertainties described more fully in our public announcements, reports to stockholders and other documents filed with or furnished to the SEC, including our Annual Report on Form 10-K for the fiscal year ended February 1, 2026 and all subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. We have not filed our Form 10-Q for the quarter ended August 2, 2026. As a result, all financial results described here should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates that are identified prior to the time we file the Form 10-Q. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements. 3
Williams-Sonoma, Inc. is the world’s largest digital-first, design-led and sustainable home retailer. The company’s brands — Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham, GreenRow, and Dormify — represent distinct merchandise strategies that are marketed through e-commerce, direct-mail catalogs, retail stores, and business-to-business. These brands collectively support The Key Rewards, our loyalty and credit card program that offers members exclusive benefits. We operate in the U.S., Puerto Rico, Canada, Australia and the United Kingdom, and have unaffiliated franchisees that operate stores in Mexico, South Korea, India and the Philippines.
For the (In Twenty-six August 2, August 3, thousands) Weeks Ended 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash flows from operating activities: Net earnings $ 569,471 $ 478,825 Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: Depreciation and 112,683 113,165 amortization Loss on disposal/im… 1,108 3,599 of assets Non-cash lease 127,380 121,936 expense Deferred 12,884 14,658 income taxes Tax benefit related to 11,650 11,423 stock-based awards Stock-based compensation 61,530 46,974 expense Other -898 -1,275 Changes in: Accounts -19,495 2,411 receivable Merchandise 15,000 -98,562 inventories Prepaid expenses and -27,704 -37,959 other assets Accounts 49,314 -48,962 payable Accrued expenses and -89,166 -78,142 other liabilities Gift card and other 16,197 -7,069 deferred revenue Operating lease -127,247 -125,977 liabilities Income taxes -16,845 6,633 payable Net cash provided by 695,862 401,678 operating activities Cash flows from investing activities: Purchases of property and -116,434 -110,293 equipment Other 62 -1,195 Net cash used in -116,372 -111,488 investing activities Cash flows from financing activities: Repurchases of common -287,805 -289,108 stock Payment of -175,444 -155,994 dividends Tax withholdings related to -99,095 -67,903 stock-based awards Debt issuance — -1,187 costs Other -7,658 -6,941 Net cash used in -570,002 -521,133 financing activities Effect of exchange rates on -353 3,789 cash and cash equivalents Net increase (decrease) in cash and 9,135 -227,154 cash equivalents Cash and cash equivalents 1,019,801 1,212,977 at beginning of period Cash and cash equivalents $ 1,028,936 $ 985,823 at end of period
These tables include non-GAAP gross profit, gross margin, selling, general and administrative expense, operating income, operating margin, interest income, earnings before income taxes, income taxes, effective tax rate and diluted EPS. We believe that these non-GAAP financial measures provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of our quarterly actual results on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. 10
Full text with the tables
Exhibit 99.1
Williams-Sonoma, Inc. announces strong second quarter 2026 results
Q2 comparable brand revenue +6.2%
GAAP operating margin of 22.9%; non-GAAP operating margin of 17.3%
GAAP diluted EPS of $2.84; non-GAAP diluted EPS of $2.10
Raises full-year 2026 outlook
San Francisco, CA, August 26, 2026 – Williams-Sonoma, Inc. (NYSE: WSM) today
announced operating results for the second quarter ended August 2, 2026 versus
the second quarter ended August 3, 2025.
“We delivered a very strong second quarter. In Q2, our comp came in at 6.2%,
with total revenue growth of 6.7%, and we drove an operating margin of 17.3%
with earnings per share of $2.10. Every brand delivered again in the quarter,
driven by strong execution across our brands, our channels, and our team,” said
Laura Alber, President and Chief Executive Officer.
Alber concluded, “Our strategies continue to gain momentum, and our results
reflect the power of our execution. We gained market share, continued to
outperform the industry, and raised our annual outlook on both the top and
bottom lines. We are delivering compounding results despite the housing market
and other macroeconomic events, and we remain confident in our priorities and
plans for the remainder of 2026 and beyond.”
SECOND QUARTER 2026 HIGHLIGHTS
• Comparable brand revenue +6.2%.
• Gross margin of 51.6% on a GAAP basis, +450bps to LY driven by (i) IEEPA
tariff refunds, net of tariff-related vendor concessions, of +610bps, (ii)
occupancy leverage of +40bps, and (iii) supply chain efficiencies of +30bps,
partially offset by (iv) lower merchandise margins of -230bps primarily driven
by tariff costs. Occupancy costs of $208 million, +3.3% to LY.
• Gross margin of 45.5% on a non-GAAP basis, -160bps to LY driven by (i) lower
merchandise margins of -230bps primarily driven by tariff costs, partially
offset by (ii) supply chain efficiencies of +30bps, and (iii) occupancy leverage
of +40bps. Occupancy costs of $208 million, +3.3% to LY.
• SG&A rate of 28.7% on a GAAP basis, -50bps to LY driven by (i) employment
expense leverage, net of a one-time tariff-related employee recognition cost in
the form of a discretionary 401(k) contribution, of -70bps, partially offset by
(ii) higher general expenses of +10bps, and (iii) higher advertising expenses of
+10bps. SG&A of $563 million, +5.0% to LY on a GAAP basis.
• SG&A rate of 28.2% on a non-GAAP basis, -100bps to LY driven by (i) employment
expense leverage of -120bps, partially offset by (ii) higher general expenses of
+10bps, and (iii) higher advertising expenses of +10bps. SG&A of $553 million,
+3.1% to LY on a non-GAAP basis.
• Operating income of $449 million with an operating margin of 22.9% on a GAAP
basis; or $338 million with an operating margin of 17.3% on a non-GAAP basis.
+500bps to LY on a GAAP basis and -60bps to LY on a non-GAAP basis.
• GAAP diluted EPS of $2.84 per share, or $2.10 on a non-GAAP basis. +42.0% to
LY on a GAAP basis and +5.0% to LY on a non-GAAP basis.
• Merchandise inventories +1.0% to the second quarter LY to $1.45 billion, net
of $29.3 million of deferred tariff refund income recorded as a reduction of
inventory.
• Maintained strong liquidity position of $1.0 billion in cash and $696 million
in operating cash flow, inclusive of the collection of $200.2 million of tariff
refunds and the related interest, enabling the company to deliver returns to
stockholders of $90 million through dividends.
1
TARIFF REFUND
During the second quarter of fiscal 2026, we recognized income from the refund
of previously paid International Emergency Economic Powers Act (“IEEPA”)
tariffs. During the quarter, we recorded (i) a reduction of cost of goods sold
of $167.8 million related to refunds received for tariffs that have been
previously expensed and (ii) related interest income of $6.3 million. This
income was partially offset by (i) a provision of $47.5 million to reimburse
certain merchandise vendors that previously provided tariff-related concessions
and (ii) a one-time tariff-related employee recognition cost of $10.0 million,
in the form of a discretionary 401(k) contribution to all eligible employees. As
of August 2, 2026, we deferred $29.3 million of the tariff refund income as a
reduction of merchandise inventories, which we anticipate recognizing as a
reduction to cost of goods sold in the third quarter of fiscal 2026.
Substantially all of our initial refund claim of $197.8 million has been
collected as of August 2, 2026, with a remaining tariff refund receivable of
$3.2 million. We have adjusted all of these tariff-related items as non-GAAP
adjustments. See Exhibit 1 for our GAAP to non-GAAP reconciliation.
OUTLOOK
• We are raising our fiscal 2026 guidance to reflect our year-to-date strong
performance.
• In fiscal 2026, we now expect annual net revenues in the range of +4.7% to
+7.2%, with comps in the range of +4.0% to +6.5%; and an operating margin, on a
non-GAAP basis, between 17.8% to 18.2%.
• Our guidance assumes (i) all tariffs currently in place will remain for fiscal
2026, including the Section 232 tariffs, the existing Section 301 tariffs, the
new Section 301 tariffs announced on July 23rd, and the latest tariffs between
Canada and the United States, (ii) oil prices will remain elevated for the
remainder of the year, and (iii) no benefit from tariff refunds or related
interest.
• For fiscal 2026, we expect annual interest income of approximately $25 million
and an effective tax rate of approximately 26%, both on a non-GAAP basis.
• Over the long term, we continue to expect mid-to-high single-digit annual net
revenue growth with an operating margin in the mid-to-high teens.
CONFERENCE CALL AND WEBCAST INFORMATION
Williams-Sonoma, Inc. will host a live conference call today, August 26, 2026,
at 7:00 A.M. (PT). The call will be open to the general public via live webcast
and can be accessed at http://ir.williams-sonomainc.com/events . A replay of the
webcast will be available at http://ir.williams-sonomainc.com/events .
CONTACT INFORMATION
Jeff Howie EVP, Chief Financial Officer – (415) 402 4324
Jeremy Brooks SVP, Chief Accounting Officer & Head of Investor Relations – (415)
733 2371
2
SEC REGULATION G
—
NON-GAAP INFORMATION
This press release and our accompanying earnings call include non-GAAP financial
measures. Exhibit 1 provides reconciliations of these non-GAAP financial
measures to the most comparable financial measures calculated and presented in
accordance with accounting principles generally accepted in the U.S. (“GAAP”).
We have not provided a reconciliation of non-GAAP measures to the most directly
comparable GAAP measures on a forward-looking basis as we cannot do so without
unreasonable efforts due to the potential variability and limited visibility of
excluded items; these excluded items may include exit costs, reduction-in-force
initiatives, impairment, early termination charges and other non-recurring or
non-operational income or expenses. For the same reasons, we are unable to
address the probable significance of any such excluded items. We believe that
these non-GAAP financial measures, when reviewed in conjunction with GAAP
financial measures, can provide meaningful supplemental information for
investors regarding the performance of our business and facilitate a meaningful
evaluation of current period performance on a comparable basis with prior
periods. Our management uses these non-GAAP financial measures in order to have
comparable financial results to analyze changes in our underlying business from
quarter to quarter. In addition, certain other items may be excluded from non-
GAAP financial measures when the company believes this provides greater clarity
to management and investors. These non-GAAP financial measures should be
considered as a supplement to, and not as a substitute for or superior to the
GAAP financial measures presented in this press release and our financial
statements and other publicly filed reports. Such non-GAAP measures may not be
comparable to similarly titled measures used by other companies.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that involve risks and
uncertainties, as well as assumptions that, if they do not fully materialize or
are proven incorrect, could cause our results to differ materially from those
expressed or implied by such forward-looking statements. Such forward-looking
statements include, among other things, statements in the quotes of our
President and Chief Executive Officer, our fiscal year 2026 outlook and long-
term financial targets, and statements regarding our industry trends and
business strategies.
The risks and uncertainties that could cause our results to differ materially
from those expressed or implied by such forward-looking statements include: our
ability to provide products that are designed and built for durability and
longevity at competitive prices; changes in and the related impact of U.S.
(federal, state and local) and international tax laws, trade policies and
regulations; our ability to mitigate current and future tariffs; factors,
including but not limited to general economic conditions, inflationary
pressures, consumer disposable income, rising fuel prices, recession and fears
of recession, unemployment, war and fears of war, adverse weather, availability
of consumer credit, conditions in the housing market, elevated interest rates,
and consumer confidence in current and future economic conditions that can
affect consumer spending; the plans, strategies, initiatives and objectives of
management for future operations; our ability to execute strategic priorities
and growth initiatives; our beliefs about our competitive advantages and areas
of potential future growth in the market; the impact of periods of decreased
home purchases; our ability to anticipate consumer preferences and buying
trends; factors, including but not limited to fuel costs, labor disputes, union
organizing activity, geopolitical instability, and acts of terrorism and war,
that can affect the global supply chain; effective inventory management; timely
and effective sourcing and delivery of merchandise from our suppliers; our
ability to respond to the growing use of and to adopt new technologies,
including artificial intelligence; our belief in the reasonableness of the steps
taken by us and our suppliers to protect the security and confidentiality of the
information we collect; multi-channel and multi-brand complexities; our brands,
products, retail and related initiatives, including our ability to introduce new
products, product lines, brands and brand extensions, and bring in new
customers; challenges associated with our global presence and expansion efforts;
our ability to control employment, advertising, occupancy, and other operating
costs; payment of dividends; our ability to drive long-term sustainable returns;
our capital allocation strategy in fiscal 2026; our planned use of cash in
fiscal 2026; projections of earnings, revenues, growth and other financial
items; and other risks and uncertainties described more fully in our public
announcements, reports to stockholders and other documents filed with or
furnished to the SEC, including our Annual Report on Form 10-K for the fiscal
year ended February 1, 2026 and all subsequent quarterly reports on Form 10-Q
and current reports on Form 8-K. We have not filed our Form 10-Q for the quarter
ended August 2, 2026. As a result, all financial results described here should
be considered preliminary, and are subject to change to reflect any necessary
adjustments or changes in accounting estimates that are identified prior to the
time we file the Form 10-Q. All forward-looking statements in this press release
are based on information available to us as of the date hereof, and we assume no
obligation to update these forward-looking statements.
3
ABOUT WILLIAMS-SONOMA, INC.
Williams-Sonoma, Inc. is the world’s largest digital-first, design-led and
sustainable home retailer. The company’s brands — Williams Sonoma, Pottery Barn,
Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home,
Rejuvenation, Mark and Graham, GreenRow, and Dormify — represent distinct
merchandise strategies that are marketed through e-commerce, direct-mail
catalogs, retail stores, and business-to-business. These brands collectively
support The Key Rewards, our loyalty and credit card program that offers members
exclusive benefits. We operate in the U.S., Puerto Rico, Canada, Australia and
the United Kingdom, and have unaffiliated franchisees that operate stores in
Mexico, South Korea, India and the Philippines.
WSM-IR
4
Condensed Consolidated Statements of Earnings (unaudited)
… …
… …
… … … … …
… … … … …
… … … … …
──────────────────────────────────────────────────────────────────────────────
% % %
$ … $ … $ …
… … …
… … …
$ … … % $ … … $ % … …
… … … … … …
… … … … … …
… … … … … …
… … … … … …
… … … … … …
… … … … … …
… … … … … …
$ … … % $ … … $ % … …
$ … $ … $ …
$ … $ … $ …
… … …
… … …
2nd
Qua…
Net
Rev…
and
Com… (In Compa…
Bra… thou… brand
Rev… exce… Net reven…
Gro… perc… reve… Q2 26 Q2 25 growth Q2 26 Q2 25
──────────────────────────────────────────────────────────────────────────────
Pot… $ 770,8… $ 724,… 5.1 % 1.1 %
Barn
West 496,2… 468,… 6.4 3.3
Elm
Wil… 268,8… 249,… 7.6 5.1
Son…
Pot…
Barn
Kids 297,4… 286,… 3.5 5.3
and
Teen
Oth… 126,4… 107,… N/A N/A
Tot… $ 1,959… $ 1,83… 6.2 % 3.7 %
1See
the
Com…
10-K
for
the
def…
of
com…
bra…
rev…
whi…
is
cal…
on a
13-…
bas…
and
inc…
bus…
rev…
2In…
Wil…
Son…
Home
net
rev…
3Pr…
con…
of
net
rev…
from
Rej…
Mark
and
Gra…
our
int…
fra…
ope…
Gre…
and
Dor…
4To…
com…
bra…
rev…
gro…
inc…
Rej…
Mark
and
Gra…
and
Gre…
5
Condensed Consolidated Balance Sheets (unaudited)
(In
thousands,
except per
share August 2, February 1, August 3,
amounts) As of 2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
Assets
Current
assets
Cash and
cash $ 1,028,936 $ 1,019,801 $ 985,823
equivalen…
Accounts
receivabl… 146,219 126,821 115,509
net
Merchandi…
inventori… 1,447,423 1,462,849 1,433,605
net
Prepaid 105,583 80,053 100,622
expenses
Other
current 18,385 23,663 19,961
assets
Total
current 2,746,546 2,713,187 2,655,520
assets
Property
and 1,121,677 1,095,158 1,029,526
equipment,
net
Operating
lease 1,322,644 1,270,272 1,221,792
right-of-…
assets
Deferred
income 74,433 99,161 95,797
taxes, net
Goodwill 77,369 77,398 77,374
Other
long-term 163,637 156,736 148,359
assets,
net
Total $ 5,506,306 $ 5,411,912 $ 5,228,368
assets
Liabiliti…
and
stockhold…
equity
Current
liabiliti…
Accounts $ 703,822 $ 637,985 $ 601,661
payable
Accrued 207,857 314,588 202,914
expenses
Gift card
and other 618,926 602,940 578,192
deferred
revenue
Income
taxes 62,098 78,943 74,329
payable
Operating
lease 217,032 221,356 222,572
liabiliti…
Other
current 88,843 98,318 86,641
liabiliti…
Total
current 1,898,578 1,954,130 1,766,309
liabiliti…
Long-term
operating 1,310,914 1,235,549 1,171,675
lease
liabiliti…
Other
long-term 155,900 139,674 140,688
liabiliti…
Total 3,365,392 3,329,353 3,078,672
liabiliti…
Stockhold…
equity
Preferred
stock:
$0.01 par
value;
7,500 — — —
shares
authorize…
none
issued
Common
stock:
$0.01 par
value;
253,125
shares
authorize…
117,779,
118,770,
and
121,790
shares 1,178 1,188 1,219
issued and
outstandi…
at
August 2,
2026,
February
1, 2026
and
August 3,
2025,
respectiv…
Additional
paid-in 543,931 587,433 544,244
capital
Retained 1,611,605 1,509,129 1,622,191
earnings
Accumulat…
other -14,142 -13,176 -15,943
comprehen…
loss
Treasury
stock, at -1,658 -2,015 -2,015
cost
Total
stockhold… 2,140,914 2,082,559 2,149,696
equity
Total
liabiliti…
and $ 5,506,306 $ 5,411,912 $ 5,228,368
stockhold…
equity
6
Ret…
Sto… Begi… May End August Augu…
Data of 3, of 2, 3,
(un… quar… 2026 Open… Closi… quar… 2026 As of 2025
──────────────────────────────────────────────────────────────────────────────
Pot… 180 2 -1 181 181
Barn
Wil… 153 — — 153 154
Son…
West 116 1 — 117 119
Elm
Pot…
Barn 43 — — 43 44
Kids
Rej… 13 — — 13 11
Gre… 1 — — 1 —
Tot… 506 3 -1 508 509
7
Condensed Consolidated Statements of Cash Flows (unaudited)
For the
(In Twenty-six August 2, August 3,
thousands) Weeks Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash flows
from
operating
activities:
Net earnings $ 569,471 $ 478,825
Adjustments
to reconcile
net earnings
to
net cash
provided by
(used in)
operating
activities:
Depreciation
and 112,683 113,165
amortization
Loss on
disposal/im… 1,108 3,599
of assets
Non-cash
lease 127,380 121,936
expense
Deferred 12,884 14,658
income taxes
Tax benefit
related to 11,650 11,423
stock-based
awards
Stock-based
compensation 61,530 46,974
expense
Other -898 -1,275
Changes in:
Accounts -19,495 2,411
receivable
Merchandise 15,000 -98,562
inventories
Prepaid
expenses and -27,704 -37,959
other assets
Accounts 49,314 -48,962
payable
Accrued
expenses and -89,166 -78,142
other
liabilities
Gift card
and other 16,197 -7,069
deferred
revenue
Operating
lease -127,247 -125,977
liabilities
Income taxes -16,845 6,633
payable
Net cash
provided by 695,862 401,678
operating
activities
Cash flows
from
investing
activities:
Purchases of
property and -116,434 -110,293
equipment
Other 62 -1,195
Net cash
used in -116,372 -111,488
investing
activities
Cash flows
from
financing
activities:
Repurchases
of common -287,805 -289,108
stock
Payment of -175,444 -155,994
dividends
Tax
withholdings
related to -99,095 -67,903
stock-based
awards
Debt
issuance — -1,187
costs
Other -7,658 -6,941
Net cash
used in -570,002 -521,133
financing
activities
Effect of
exchange
rates on -353 3,789
cash and
cash
equivalents
Net increase
(decrease)
in cash and 9,135 -227,154
cash
equivalents
Cash and
cash
equivalents 1,019,801 1,212,977
at beginning
of period
Cash and
cash
equivalents $ 1,028,936 $ 985,823
at end of
period
8
Exhibit 1
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% % % %
$ … $ … $ … $ …
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$ … $ … $ … $ …
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$ … $ … $ … $ …
9
SEC Regulation G – Non-GAAP Information
These tables include non-GAAP gross profit, gross margin, selling, general and
administrative expense, operating income, operating margin, interest income,
earnings before income taxes, income taxes, effective tax rate and diluted EPS.
We believe that these non-GAAP financial measures provide meaningful
supplemental information for investors regarding the performance of our business
and facilitate a meaningful evaluation of our quarterly actual results on a
comparable basis with prior periods. Our management uses these non-GAAP
financial measures in order to have comparable financial results to analyze
changes in our underlying business from quarter to quarter. These non-GAAP
financial measures should be considered as a supplement to, and not as a
substitute for, or superior to, financial measures calculated in accordance with
GAAP.
10