How Will Williams-Sonoma Stock React To Its Upcoming Earnings?
Williams-Sonoma (NYSE: WSM) is set to report its earnings on Wednesday, August 26, 2026. The company has $28 billion in current market capitalization. Revenue over the last twelve months was $7.9 billion, and it was operationally profitable with $1.4 billion in operating profits and net income of $1.1 billion. While a lot will depend on how results stack up against consensus and expectations, understanding historical patterns might just turn the odds in your favor if you are an event-driven trader.
There are two ways to do that: understand the historical odds and position yourself prior to the earnings release, or look at the correlation between immediate and medium-term returns post-earnings and position yourself accordingly after the earnings are released.
See earnings reaction history of all stocks
Ask yourself – Is holding WSM stock risky? Of course it is. The Trefis High Quality Portfolio mitigates that risk.
- How Will Five Below Stock React To Its Upcoming Earnings?
- Karman Stock: 5 Straight Red Days, Down 14%
- Corcept Therapeutics Stock Climbs 11% On A 6-Day Winning Streak
- Forgent Power Solutions Stock: 5 Straight Red Days, Down 16%
- The 52-Week-High List: 20 S&P 500 Names On Friday
- S&P 500 Stocks At 52-Week Lows: Friday’s Full List
Williams-Sonoma’s Historical Odds Of Positive Post-Earnings Return
Some observations on one-day (1D) post-earnings returns:
- There are 16 earnings data points recorded over the last five years, with 10 positive and 6 negative one-day (1D) returns observed. In summary, positive 1D returns were seen about 63% of the time.
- However, this percentage decreases to 50% if we consider data for the last 3 years instead of 5.
- Median of the 10 positive returns = 7.8%, and median of the 6 negative returns = -4.8%
Additional data for observed 5-Day (5D) and 21-Day (21D) returns post earnings are summarized along with the statistics in the table below.
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D | 5D | 21D |
| 3/18/2026 | 1.1% | -0.6% | 5.1% |
| 11/19/2025 | -3.4% | -0.6% | 5.6% |
| 8/27/2025 | -2.9% | -2.9% | 1.6% |
| 3/19/2025 | -3.5% | -1.8% | -20.1% |
| 11/20/2024 | 27.5% | 26.8% | 30.9% |
| 8/22/2024 | -9.3% | -6.1% | 3.4% |
| 5/22/2024 | -11.0% | -10.1% | -3.5% |
| 3/13/2024 | 17.8% | 21.7% | 22.2% |
| 11/16/2023 | 6.2% | 12.4% | 26.9% |
| 8/23/2023 | 13.5% | 13.8% | 12.9% |
| 3/16/2023 | 1.1% | 0.3% | -0.1% |
| 11/17/2022 | -6.2% | -6.1% | -11.4% |
| 8/24/2022 | 2.2% | -8.4% | -22.7% |
| 5/25/2022 | 13.1% | 13.0% | 6.4% |
| 3/16/2022 | 5.4% | -2.3% | -2.3% |
| 8/25/2021 | 9.3% | 7.3% | 12.0% |
| SUMMARY STATS | |||
| # Positive | 10 | 7 | 10 |
| # Negative | 6 | 9 | 6 |
| Median Positive | 7.8% | 13.0% | 9.2% |
| Median Negative | -4.8% | -2.9% | -7.4% |
| Max Positive | 27.5% | 26.8% | 30.9% |
| Max Negative | -11.0% | -10.1% | -22.7% |
Correlation Between 1D, 5D and 21D Historical Returns
A relatively less risky strategy (though not useful if the correlation is low) is to understand the correlation between short-term and medium-term returns post earnings, find a pair that has the highest correlation, and execute the appropriate trade. For example, if 1D and 5D show the highest correlation, a trader can position themselves “long” for the next 5 days if the 1D post-earnings return is positive. Here is some correlation data based on a 5-year and a 3-year (more recent) history. Note that the correlation 1D_5D refers to the correlation between 1D post-earnings returns and subsequent 5D returns.
| History | 1D_5D | 1D_21D | 5D_21D |
|---|---|---|---|
| 5Y History | -12.7% | -10.1% | 28.0% |
| 3Y History | -28.1% | -18.9% | 10.1% |
Is There Any Correlation With Peer Earnings?
Sometimes, peer performance can have an influence on post-earnings stock reaction. Some of that pricing-in may even begin before the earnings are announced. Here is some historical data on the past post-earnings performance of Williams-Sonoma stock compared with the stock performance of peers that reported earnings just before Williams-Sonoma. For fair comparison, peer stock returns also represent post-earnings one-day (1D) returns.
| 1D Return | Peer Post-Earnings 1D Return | ||
|---|---|---|---|
| WSM Earnings Dates | WSM | W | ETD |
| 3/18/2026 | 1.1% | -13.0% | N/A* |
| 11/19/2025 | -3.4% | 23.2% | -9.9% |
| 8/27/2025 | -2.9% | 12.7% | 2.0% |
| 3/19/2025 | -3.5% | -0.6% | N/A* |
| 11/20/2024 | 27.5% | -6.3% | -5.9% |
| 8/22/2024 | -9.3% | -8.1% | 3.8% |
| 5/22/2024 | -11.0% | 16.0% | -13.0% |
| 3/13/2024 | 17.8% | 10.8% | N/A* |
| 11/16/2023 | 6.2% | 4.2% | -9.3% |
| 8/23/2023 | 13.5% | 16.2% | 16.2% |
| 3/16/2023 | 1.1% | -23.0% | N/A* |
| 11/17/2022 | -6.2% | 5.2% | 9.8% |
| 8/24/2022 | 2.2% | -2.4% | 8.2% |
| 5/25/2022 | 13.1% | N/A* | -11.9% |
| 3/16/2022 | 5.4% | 4.7% | N/A* |
| CORRELATION | -6.3% | -3.1% | |
* N/A indicates no comparable post-earnings session for that peer in that quarter
Separately, if you want upside with a smoother ride than an individual stock such as WSM, consider the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.