03:13 PM EDT, 03/19/2026 (MT Newswires) -- Williams-Sonoma ( WSM ) delivered a solid holiday quarter, though much of the earnings upside came from non-operating items and results modestly topped expectations, UBS Securities said in a note emailed Thursday.

The company reported quarterly sales of roughly $2.36 billion, down year over year, and below UBS' estimate of $2.41 billion. Comparable sales of 3.2% topped UBS' estimate of 3.0% and had gains at West Elm and Williams-Sonoma ( WSM ) offset by a decline at Pottery Barn ( WSM ), according to the note.

UBS said the company's fiscal 2026 guidance suggests earnings per share of about $9 to $9.65, broadly in line with expectations, with more optimistic investors anticipating results near $10 and more cautious views closer to $9.

Management forecasts total sales growth of 2.7% to 6.7% and comparable sales growth of 2% to 6%, with operating margins of 17.5% to 18.1%, including tariff impacts, the report highlighted. UBS noted that margin trends will likely determine where earnings will land in the next few quarters.

The firm maintained its neutral rating on the stock with a price target of $185.

Shares of Williams-Sonoma ( WSM ) were down 1.2% in Thursday trading.

Price: 180.47, Change: -3.63, Percent Change: -1.97