Williams-Sonoma furnished a comeback — without homebuyers

Pivot! Pivot! Pivot! If Ross Geller, the friendly paleontologist from TV, can do it, then Williams-Sonoma Inc. can too.

Home sales in 2026 are slightly higher than the previous year, but the number sold remains well below the decades-long average. The housing market struggles with affordability as rising prices and high mortgage rates sideline potential buyers.

When the housing market slows down, home and furniture retailers feel the impact too.

But while some retailers like Value City Furniture liquidated, Williams-Sonoma Inc. saw its stock rise by more than 200% over three years.

Strategic realignment

“Its customer base is a little more insulated from economic stresses and strains and is more willing to splurge on home furnishings,” Neil Saunders, the managing director of retail at GlobalData, told The Hustle.

But the high-quality home furnishings company, which owns brands like Pottery Barn and West Elm, also leaned into the business-to-business (B2B) revenue stream.

“While the dynamics of selling to businesses are a bit different, they’re not so different as to make the venture inefficient,” Saunders said. “Williams-Sonoma can basically fish in both pools quite easily, and doing so provides more balance to the business. The business-to-business segment is huge in terms of revenue.”

The company’s 2026 Q2 earnings call reported:

• B2B revenue increased 14.5% in the quarter.
• Contract revenue grew 20%, and trade revenue grew 12%, per CFO Jeff Howie.
• Contract revenue accounted for 36% of the B2B business.

Where it's expanding

• The company named cruise ships, senior living, and student housing as markets it's expanding into.
• Completed projects: Virgin Hotels in New York City, Signature Aviation's Miami Executive Airport, the University of Texas at Austin's Hardin House, and Napa's Carneros Inn.

Cruise ships, senior living, and student housing get updated more often than homes. Saunders noted a risk of styles becoming too common. However, most people won't notice the products much when they're on cruise ships or in student housing.

In friendly company

Williams-Sonoma Inc. isn't the only B2B company. "IKEA has a big B2B business for office furnishings," Saunders said. "Amazon has a huge B2B operation generating billions in revenue.”

Both companies have built their B2B operations with a clear focus on meeting businesses' specific needs.

Pivot? Williams-Sonoma Inc. made a new path up the stairs, no “Shut up! Shut up!” required.