Williams-Sonoma (WSM) closed the most recent trading day at $210.20, moving +1.56% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.32%. Elsewhere, the Dow saw an upswing of 1.04%, while the tech-heavy Nasdaq appreciated by 0.14%. The seller of cookware and home furnishings's stock has climbed by 26.49% in the past month, exceeding the Retail-Wholesale sector's gain of 2.39% and the S&P 500's gain of 3.08%.Analysts and investors alike will be keeping ...

Williams-Sonoma (WSM) closed the most recent trading day at $203.78, moving +1.63% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.49%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.65%. The seller of cookware and home furnishings's stock has climbed by 18.5% in the past month, exceeding the Retail-Wholesale sector's loss of 1.34% and the S&P 500's gain of 0.96%.The upcoming earnings release of Williams-Sonoma will be of great interest to investors. Th ...

Core Insights - Williams-Sonoma Inc (NYSE: WSM) stock has rebounded by 3.3% to $170.40, indicating a potential recovery after a recent decline [1] - The stock has struggled at the $180 level for the past few months, but there is optimism that it may break through this resistance soon [1] - The stock is currently close to its 50-day moving average, which historically signals bullish trends [1] Technical Analysis - WSM is within 0.75 of the 50-day trendline's 20-day average true range (ATR), having spent over 80% of the last 10 days and two months above this level [2] - In the past three years, similar conditions have led to an 82% success rate for the stock being higher one month later, with an average gain of 7% [2] - A similar upward movement from the current price could push shares above $182 [2] Market Sentiment - Short interest in WSM has begun to decrease but still represents 5% of the stock's available float, equating to over three days of potential buying power based on average trading volume [4] - Options traders are currently pricing in low volatility expectations, as indicated by a Schaeffer's Volatility Index (SVI) of 39%, which is in the low 4th percentile of its annual range [4] - The stock has historically outperformed these low volatility expectations, supported by a Schaeffer's Volatility Scorecard (SVS) rating of 82 out of 100 [4]

Core Viewpoint - Williams-Sonoma is set to report earnings with a forecasted EPS of $1.78, reflecting a 2.3% increase year-over-year, and expected revenue of $1.81 billion, indicating a 1.46% growth compared to the same quarter last year [2]. Group 1: Stock Performance - Williams-Sonoma's stock closed at $163.62, down 4.01% from the previous day, underperforming the S&P 500, which fell by 0.4% [1]. - Over the past month, shares of Williams-Sonoma have increased by 7.78%, outperforming the Retail-Wholesale sector's gain of 4.14% and the S&P 500's gain of 4.97% [1]. Group 2: Earnings Forecast - For the entire year, the Zacks Consensus Estimates predict earnings of $8.53 per share and revenue of $7.72 billion, showing a decrease of 2.96% in earnings and a slight increase of 0.14% in revenue compared to the previous year [3]. - Recent adjustments to analyst estimates indicate a positive outlook for Williams-Sonoma, reflecting optimism about the company's business and profitability [3]. Group 3: Valuation Metrics - Williams-Sonoma has a Forward P/E ratio of 19.98, which is in line with the industry average [6]. - The company's PEG ratio stands at 2.76, compared to the Retail - Home Furnishings industry's average PEG ratio of 2.33 [7]. Group 4: Industry Ranking - The Retail - Home Furnishings industry, which includes Williams-Sonoma, ranks in the top 39% of all industries, with a current Zacks Industry Rank of 94 [7]. - The Zacks Rank system, which evaluates stocks based on estimate changes, indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8].

Group 1: Carnival Corporation - Carnival is the leading global cruise operator, recovering from extreme debt and showing strong business performance with stock still 60% off its highs [4] - The stock price has risen 64% over the past year, trading at a price-to-sales ratio of 1.5 and a forward P/E ratio under 13, indicating potential for further gains [5] - In Q2 of fiscal 2025, Carnival reported revenue of $6.3 billion, a 9% year-over-year increase, with operating income rising from $560 million to $934 million [6] - The company had record deposits of $8.5 billion and is maintaining high bookings, alleviating concerns about demand drying up [7] - Carnival ended the quarter with $27 billion in total debt, having refinanced $7 billion at more favorable rates, and is close to achieving investment-grade credit ratings [8] - Carnival stock may appeal to investors willing to take on some risk, as the company is expected to bounce back and reward shareholders [9] Group 2: Williams-Sonoma - Williams-Sonoma targets the upscale housewares market and has faced challenges due to macroeconomic pressures, particularly in the sluggish real estate sector [11] - The company reported a 3.4% year-over-year increase in comparable brand revenue and an operating margin of 16.8%, exceeding guidance [12] - Williams-Sonoma has a diversified supplier base, with only 23% of its products sourced from China, positioning it well to handle tariff changes [12] - The company emphasizes a "digital first, not digital only" strategy, with e-commerce accounting for 66% of total sales in Q1 of fiscal 2025, tapping into a $830 billion addressable market [14] - Despite a decline of 8% in stock price this year, investor enthusiasm is returning, and the stock offers a dividend yield of 1.4% [15] - The stock trades at a forward P/E ratio of 19, presenting a potential entry point for investors [15]

Core Viewpoint - The comparison between Haverty Furniture (HVT) and Williams-Sonoma (WSM) indicates that HVT may offer better value for investors at this time due to its stronger earnings outlook and favorable valuation metrics [1][3]. Group 1: Zacks Rank and Earnings Outlook - HVT has a Zacks Rank of 2 (Buy), while WSM has a Zacks Rank of 3 (Hold), suggesting that HVT has a stronger improvement in its earnings outlook compared to WSM [3]. - The Zacks Rank emphasizes earnings estimates and revisions, which are critical for value investors [2]. Group 2: Valuation Metrics - HVT has a forward P/E ratio of 15.65, significantly lower than WSM's forward P/E of 19.15, indicating that HVT may be undervalued relative to WSM [5]. - HVT's PEG ratio is 1.30, while WSM's PEG ratio is 2.64, further suggesting that HVT is more attractive in terms of expected earnings growth [5]. - HVT's P/B ratio is 1.08, compared to WSM's P/B of 9.3, highlighting HVT's better valuation in terms of market value versus book value [6]. Group 3: Value Grades - HVT has earned a Value grade of A, while WSM has a Value grade of C, reinforcing the notion that HVT is the superior choice for value investors at this time [6].

Group 1 - Williams-Sonoma, Inc. (WSM) has acquired the intellectual property of Dormify, an online retailer targeting home solutions for college students and young adults, with plans to relaunch Dormify in 2026 [1][2] - The acquisition aligns with WSM's strategy to build and acquire brands for various life stages, enhancing its presence in the dorm market and reaching new customer segments [2][3] - WSM's product portfolio is designed to cater to diverse categories and aesthetics, which supports growth prospects despite macroeconomic challenges [3] Group 2 - The company is focusing on collaborations and product innovations to attract new audiences while retaining existing customers, with recent partnerships including Pottery Barn and various designers [4][5] - Exclusive collaborations and new store openings are diversifying WSM's product offerings and expanding market reach, positioning the company well through 2025 and beyond [5] - WSM's shares have increased by 14.1% over the past year, outperforming the Zacks Retail - Home Furnishings industry's growth of 6%, benefiting from its e-commerce business and expansion initiatives [7]

Financial Performance - Net revenues for the first quarter of fiscal 2025 increased by $69.8 million or 4.2%, with comparable brand revenue growth of 3.4%[81] - Diluted earnings per share for the first quarter of fiscal 2025 was $1.85, a decrease from $1.99 in the same quarter of fiscal 2024[85] - Gross profit for the first quarter of fiscal 2025 was $765.8 million, representing 44.3% of net revenues, down from 47.9% in the first quarter of fiscal 2024[96] - Gross profit decreased by $29.4 million, or 3.7%, with gross margin declining to 44.3% from 47.9% year-over-year[97] - Selling, general and administrative expenses (SG&A) decreased by $3.0 million, or 0.6%, with SG&A as a percentage of net revenues decreasing to 27.5% from 28.8%[100] - The effective tax rate increased to 23.0% from 21.8% year-over-year, primarily due to lower excess tax benefits from stock-based compensation[101] - Net cash provided by operating activities was $118.9 million, down from $226.8 million in the first quarter of fiscal 2024[115] Brand Performance - Pottery Barn, the largest brand, achieved comparable brand revenue growth of 2.0%, while Pottery Barn Kids and Teen brands saw growth of 3.8%[82] - The Williams Sonoma brand experienced a significant growth of 7.3% in comparable brand revenue, driven by strong performance in kitchen and home categories[84] - Emerging brands, including Rejuvenation, Mark and Graham, and GreenRow, delivered double-digit brand comp growth on a combined basis[84] Cash and Investments - As of May 4, 2025, the company had $1.0 billion in cash and cash equivalents and generated operating cash flow of $118.9 million[86] - The company invested $58.3 million in capital expenditures and returned $164.6 million to shareholders through stock repurchases and dividends in the first quarter of fiscal 2025[86] - Net cash used in investing activities increased to $58.2 million from $39.5 million, mainly due to technology and supply chain enhancements[116] - Net cash used in financing activities rose to $230.0 million from $193.7 million, driven by increased stock repurchases and dividend payments[117] - As of May 4, 2025, the company held $1.0 billion in cash and cash equivalents, with $96.1 million held by international subsidiaries[110] - The company has a $500 million unsecured revolving credit facility, with the option to increase it by up to $250 million[111] Operational Strategy - The company plans to focus on returning to growth, enhancing customer service, and driving earnings amid a challenging macroeconomic environment[88] - The company plans to use cash resources for inventory purchases, employment-related costs, advertising, and capital expenditures for the remainder of fiscal 2025[108] - The total store count decreased to 508 as of May 4, 2025, with 3 openings and 7 closures during the quarter[93] - The company experienced varying levels of inflation impacting costs, but its operating model helped mitigate these increased costs[125]

Core Viewpoint - Williams-Sonoma, Inc. reported strong first-quarter results, exceeding revenue and earnings expectations, but analysts have mixed views on future performance due to tariff-related cost pressures and margin concerns [1][4][5]. Financial Performance - The company reported revenue of $1.73 billion, a 4.2% increase year-over-year, surpassing Wall Street's estimate of $1.67 billion [1]. - GAAP earnings per share (EPS) were $1.85, beating the analyst consensus estimate of $1.77 [1]. - First-quarter comparable sales and operating margins outperformed expectations, but there was a significant headwind in merchandising gross margin of approximately 220 basis points [4]. Future Outlook - Williams-Sonoma maintains its fiscal 2025 guidance, projecting net revenue to range between -1.5% and +1.5%, with comparable sales flat to up 3.0% [2][3]. - Analysts have adjusted their EPS forecasts for 2025 and 2026, with estimates now at $8.33 and $9.10, respectively [5][7]. - The company is viewed positively for long-term growth potential, driven by market share gains and a strong balance sheet, with some analysts suggesting over 50% upside in shares over the next two to three years [6]. Analyst Ratings and Price Forecasts - RBC Capital Markets analyst Steven Shemesh lowered the price forecast to $182 from $189 while maintaining an Outperform rating [3]. - KeyBanc analyst Bradley B. Thomas reiterated an Overweight rating with a price forecast of $181, citing solid first-quarter results despite industry challenges [5]. - Telsey Advisory analyst Cristina Fernández maintained an Outperform rating with a price forecast of $215 [7]. Market Trends - All brands under Williams-Sonoma posted positive year-over-year comparable sales for the first time since Q2 2022, indicating improved multi-year comp trends [9]. - The return to positive furniture comps is noted as significant, despite concerns over gross margin performance [8].

Core Viewpoint - Williams-Sonoma (WSM) is fundamentally a good buy due to its operational quality, strong balance sheet, cash flow, and ability to sustain value-building capital returns, despite being on sale in Q2 2025 with no immediate catalysts for a rally [1] Financial Performance - In Q1, Williams-Sonoma reported revenue growth of over 4% to $1.73 billion, exceeding MarketBeat's consensus by 350 basis points, driven by positive comps across all retail brands, particularly a 7.3% gain in the core Williams-Sonoma channel [8] - The adjusted operating margin expanded by 70 basis points, resulting in earnings up 8.8% and slightly above consensus [10] Capital Returns - The company has accelerated share repurchases, with the amount repurchased in Q1 being more than double the previous year's figure, leading to a 4.9% year-over-year reduction in share count [2][3] - The remaining $1.1 billion in capital is sufficient for approximately 12 quarters at the current repurchase pace, enhancing leverage for shareholders [3] Guidance and Outlook - The guidance for 2025 was reaffirmed, indicating expectations for mid-single-digit top-line growth over the next decade and robust margins, despite near-term headwinds and macroeconomic uncertainty [4][11] - Analysts forecast a 12-month stock price target of $177.81, suggesting a 10.37% upside from the current price of $161.11 [9] Market Sentiment - Williams-Sonoma enjoys strong sell-side support, evidenced by 99.5% institutional ownership and increasing bullish activity, despite a recent 10% price drop following the earnings report [5][6] - Analysts' sentiment is firming, with rising price targets forecasting a move into the $175 to $200 range [6]