Williams-Sonoma reports Q2 revenue growth and AI expansion

Williams-Sonoma Inc. reported a 6.7% year-over-year increase in net revenue for its fiscal second quarter, reaching $1.96 billion. Despite a stagnant housing market, the company saw ecommerce comparable revenue rise 6.5%, slightly outpacing the 5.5% growth seen in physical stores. CEO Laura Alber noted that growth occurred across all brands in the portfolio, with business-to-business (B2B) operations and emerging brands delivering double-digit growth.

A key driver in the company’s digital strategy is the expansion of artificial intelligence tools. Revenue from its AI assistant grew 620% during the quarter, including the deployment of a new assistant, Otto, on the Pottery Barn website. The company is utilizing AI to enhance service and drive sales.

Following these results, financial analysts have adjusted their outlooks for the retailer. Morgan Stanley raised its target price for Williams-Sonoma (WSM) from $210 to $240, maintaining an “equal weight” rating. Other institutions, including Royal Bank of Canada and Piper Sandler, have issued positive outlooks with higher price targets, contributing to a consensus “Moderate Buy” rating.