To date, 159 of the 185 companies in our Retail/Restaurant Index have reported their EPS results for Q2 2026, representing 86% of the index. Of those companies that have reported their quarterly results, 73% announced profits that beat analysts’ expectations, while 5% delivered on-target results and 22% reported earnings that fell below estimates. The Q2 2026 blended earnings growth estimate now stands at 69.5%.
The blended revenue growth estimate for the 159 companies in this index is 7.7% for Q2 2026. Of those companies that have reported their quarterly results so far, 72% announced revenue that exceeded analysts’ expectations and the remaining 28% reported that their revenue fell below analysts’ forecasts.
Exhibit 1: LSEG Earnings Dashboard
Source: LSEG I/B/E/S
This week in retail
As predicted by StarMine, Williams Sonoma exceeded Q2 earnings expectations and delivered a positive surprise, with earnings increasing 5.0% from a year ago. Revenue also remained healthy, rising 6.7%, while same-store sales (SSS) were positive across its major brands. The namesake Williams Sonoma banner was particularly strong, posting a 7.6% SSS. The results reinforce the resilience of the higher-income consumer, particularly in premium home furnishings, despite continued housing-market and macroeconomic uncertainty.
Management also raised its full-year outlook for both revenue and earnings, citing continued market-share gains and industry outperformance. In its Q2 earnings release, the company said, “We gained market share, continued to outperform the industry, and raised our annual outlook on both the top and bottom lines.” (Source: WSM Q2 2026 Earnings Release)
Abercrombie & Fitch delivered stronger-than-expected Q2 revenue, with sales increasing 4.8% and reaching a record for the second quarter. The result marked the retailer’s 15th consecutive quarter of sales growth, demonstrating continued momentum. Earnings also exceeded expectations and increased 4.3%.
However, the SSS picture was more mixed. Overall SSS were flat, falling short of expectations and slowing from the 3.0% increase reported a year ago. Performance also diverged sharply by brand: the Abercrombie banner remained the growth engine with SSS up 4.0%, while Hollister comps declined 3.0%. Despite the softer SSS performance, management raised its full-year outlook, signaling confidence in the company’s ability to sustain growth through the remainder of 2026.
Kohl’s, on the other hand, reported Q2 revenue and earnings below expectations, with earnings declining 44.6% from a year ago. SSS also missed expectations, falling 0.9%. While the result remained negative, it represented an improvement in Kohl’s recent comp trajectory, suggesting that some of the retailer’s turnaround initiatives may be beginning to gain traction.
Still, Kohl’s continues to face the broader structural pressures weighing on the department-store sector as consumers increasingly gravitate toward off-price, membership, and other value-oriented retail formats. Management acknowledged that the turnaround remains a work in progress, stating, “While we are encouraged with the momentum we have made thus far, we know there is critical work ahead of us.” (Source: KSS Q2 2026 Earnings Release)
Taken together, the results highlight the increasingly selective nature of consumer spending. Premium retailers with strong brand positioning, such as Williams Sonoma, continue to resonate with higher-income shoppers, while Abercrombie’s performance underscores the importance of brand and product execution. Meanwhile, Kohl’s ongoing weakness reflects the structural challenges facing traditional department stores as consumers increasingly gravitate toward retailers offering either differentiated products or a compelling value proposition.
Here are the latest Q2 2026 earnings and same store sales retail estimates:
Exhibit 2: Same Store Sales and Earnings Estimates – Q2 2026
Source: LSEG I/B/E/S
