Williams-Sonoma is not factoring any potential tariff refunds into its 2026 financial planning, choosing instead to build its outlook around the assumption that today’s trade pressures will remain in place, or be replaced by similar levies.
Speaking on the company’s March 20 earnings call, chief financial officer Jeff Howie said the retailer’s guidance for fiscal 2026 assumes that all tariff rates currently in effect will either continue or be substituted by comparable measures.
He said tariff policy had become too unstable to forecast with confidence, describing it as volatile and subject to repeated revisions. In that environment, the company believes it is impossible to know where tariff levels will ultimately settle or what their final impact on the business will be.
That cautious stance means Williams-Sonoma is not relying on any potential reimbursement tied to tariffs invalidated by the US Supreme Court earlier this year.
Following the ruling, US Customs and Border Protection has been working on a dedicated system to process refunds for importers who paid those duties. In its latest court-ordered development update, the agency said different components of the system were between 60% and 85% complete.
As that refund framework takes shape, several companies have already filed lawsuits seeking repayment from the Trump administration. Among them are Costco, Abercrombie and Fitch Trading Co., and Lululemon. Costco has said it would lower prices and offer better value to consumers if and when those funds are recovered.
Williams-Sonoma, however, is taking a more conservative line. Rather than anticipating refunds, it is preparing for current tariff pressure to remain broadly unchanged. That includes exposure to Section 301 tariffs, sector-specific levies on products such as steel and aluminium, and the temporary global tariff.
In February, after the Supreme Court struck down tariffs imposed under the International Emergency Economic Powers Act, President Donald Trump introduced a temporary 10% global tariff under Section 122 of the Trade Act of 1974. He later said that rate would rise to 15%, although that increase has not yet been implemented. Even so, Williams-Sonoma used the 15% level when building its 2026 guidance.
Howie said that while Section 122 tariffs are currently due to expire in July, the company’s outlook assumes they will be replaced with tariffs at a similar rate.
Looking ahead, Williams-Sonoma says it will continue using the same mitigation strategies that helped soften the tariff impact in 2025. President and CEO Laura Alber said the company would keep leaning on vendor negotiations, re-sourcing, supply chain efficiencies, cost improvements and selective price adjustments.
Howie said the company had already demonstrated in 2025 that it could navigate tariff uncertainty while still producing strong earnings, and added that management believes it can do the same again in fiscal 2026.
