Key Takeaways Bye-bye, tariffs—and buy, buy stocks that were pressured by them. Shares of a range of consumer-oriented companies rose Friday following the Supreme Court's ruling that struck down many of the Trump administration's tariffs. While the path forward for the administration, the import taxes and related policy remains uncertain, in the immediate term investors are bidding some shares higher. Investors got some measure of tariff relief on Friday after the court ruling, with some shares—consumer- fo ...

This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Dive Brief: Williams Sonoma and Pottery Barn parent company Williams-Sonoma is participating in the OpenAI Ad Pilot program, making the home goods company among the first to test ads on the generative AI platform, according to a Feb. 11 press release. As part of the partnership, Williams-Sonoma will explore how to reach customers as they make purchasing decisions. ...

Core Insights - Mark & Graham, a brand under Williams-Sonoma, Inc., is expanding its collaboration with the English design house Sanderson to include personalized bath products that feature Sanderson's classic English patterns [1] Company Overview - Mark & Graham is recognized as the world's largest digital-first, design-led, and sustainable home retailer [1] - The collaboration with Sanderson began in February and has gained popularity, leading to the introduction of new product lines [1] Product Development - The new bath products are designed to reimagine Sanderson's timeless patterns, enhancing their appeal as elevated essentials for consumers [1]

Core Thesis - Williams-Sonoma, Inc. is viewed positively by Quality Value Investing, highlighting its brand strength, customer loyalty, and effective omnichannel execution, contrasting with Morningstar's "no-moat" rating [1][3][6] Company Overview - Williams-Sonoma, Inc. is a mid-cap omnichannel retailer in the home furnishings sector, operating brands like Williams Sonoma, Pottery Barn, and West Elm, with a strong focus on affluent customers [2] Financial Performance - The company has achieved mid-single-digit annualized revenue growth over the past five years, maintaining profitability with mid-double-digit net margins due to disciplined cost control [4] - A new $1 billion buyback authorization was announced, with over $266 million of stock repurchased in Q3, indicating strong capital allocation and value creation [5] Investment Highlights - Return on invested capital significantly exceeds QVI's target and the company's weighted average cost of capital, supporting a positive long-term shareholder return profile [5] - The stock price has appreciated approximately 36.51% since previous bullish coverage, reflecting confidence in margin expansion and operational efficiency [6]

Company Performance - Williams-Sonoma's stock closed at $205.72, down 1.21%, which is less than the S&P 500's daily loss of 0.01% [1] - Over the past month, shares have appreciated by 14.8%, outperforming the Retail-Wholesale sector's gain of 4.91% and the S&P 500's gain of 0.78% [1] Upcoming Earnings - The upcoming earnings release is projected to report earnings of $2.88 per share, representing a year-over-year decline of 12.2% [2] - Revenue is estimated to be $2.42 billion, indicating a 1.67% decrease compared to the same quarter of the previous year [2] Annual Estimates - For the annual period, earnings are anticipated to be $8.69 per share, with a revenue of $7.87 billion, reflecting shifts of -1.14% and +2.06% respectively from the last year [3] Analyst Estimates - Recent modifications to analyst estimates are important as they indicate changing business trends, with positive revisions suggesting confidence in performance and profit potential [4] - The Zacks Rank system, which evaluates these estimate changes, currently ranks Williams-Sonoma at 2 (Buy) [6] Valuation Metrics - Williams-Sonoma has a Forward P/E ratio of 23.96, which aligns with the industry average [7] - The company has a PEG ratio of 3.26, compared to the Retail - Home Furnishings industry's average PEG ratio of 2.12 [7] Industry Context - The Retail - Home Furnishings industry is part of the Retail-Wholesale sector and holds a Zacks Industry Rank of 182, placing it in the bottom 26% of over 250 industries [8]

Company Overview - Williams-Sonoma, Inc. has a market cap of $25.1 billion and operates as an omni-channel specialty retailer offering a variety of high-quality home products, including cookware, furniture, décor, lighting, and personalized gifts [1] - The company manages several well-known brands such as Williams Sonoma, Pottery Barn, West Elm, and Rejuvenation through e-commerce platforms, catalogs, and retail stores [1] Earnings Expectations - Analysts anticipate that Williams-Sonoma will report an EPS of $2.88 for Q4 2025, reflecting a 12.2% decrease from $3.28 in the same quarter last year [2] - For fiscal 2025, the expected EPS is $8.69, a 1.1% decline from $8.79 in fiscal 2024, but a projected increase of 4.5% year-over-year to $9.08 in fiscal 2026 [3] Stock Performance - Over the past 52 weeks, shares of Williams-Sonoma have declined nearly 1%, underperforming the S&P 500 Index, which gained 13.6%, and the State Street Consumer Discretionary Select Sector SPDR ETF, which rose by 6.6% [4] - Despite reporting better-than-expected Q3 2025 EPS of $1.96 and revenue of $1.88 billion, shares fell by 3.4% on November 19 due to significant tariff headwinds, including 20% tariffs on imports from China and Vietnam, and 50% on imports from India, along with inventory growth of 9.6% to $1.5 billion [5] Analyst Ratings - The consensus view among analysts on WSM stock is moderately optimistic, with an overall "Moderate Buy" rating; of the 20 analysts covering the stock, six recommend "Strong Buy," one suggests "Moderate Buy," and 13 indicate "Hold" [6] - The stock is currently trading above the average analyst price target of $205.83 [6]

Group 1 - Williams-Sonoma, Inc. (WSM) has shown a bullish momentum with a 17% increase in stock price over the last three months, indicating the non-linear nature of the stock market [1] - The analyst has been involved in the logistics sector for nearly two decades and has experience in stock investing and macroeconomic analysis for almost ten years, focusing on ASEAN and NYSE/NASDAQ stocks [1] - The analyst's investment strategy includes diversification across various industries and market cap sizes, with holdings in banks, telco, logistics, and hotels [1] Group 2 - The analyst entered the US market in 2020, gaining insights through a trading account initially managed by a relative, which led to the decision to open a personal account [1] - The analyst has been utilizing analyses from Seeking Alpha to compare with their own research in the Philippine market since discovering the platform in 2018 [1]

Group 1: Company Overview - Williams-Sonoma (WSM) is a notable stock within the Retail-Wholesale sector, which consists of 194 individual stocks [2] - The company currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [3] Group 2: Performance Metrics - WSM has gained approximately 15.3% year-to-date, outperforming the average gain of 9.8% for the Retail-Wholesale group [4] - The Zacks Consensus Estimate for WSM's full-year earnings has increased by 1.8% over the past quarter, reflecting improved analyst sentiment [4] Group 3: Industry Context - Williams-Sonoma is part of the Retail - Home Furnishings industry, which includes 10 stocks and currently ranks 185 in the Zacks Industry Rank, with an average loss of 10.2% year-to-date [6] - In contrast, Boot Barn (BOOT), another stock in the Retail-Wholesale sector, has returned 10.7% this year and belongs to the Retail - Apparel and Shoes industry, which ranks 46 and has declined by 3.9% [5][6] Group 4: Investment Outlook - Investors interested in Retail-Wholesale stocks should monitor both Williams-Sonoma and Boot Barn for their continued strong performance [7]

Group 1 - The core focus is on increasing allocations to underperforming consumer discretionary and enterprise software stocks as 2025 concludes [1] - Gary Alexander has extensive experience in technology, having worked on Wall Street and in Silicon Valley, and advises seed-round startups [1] - He has been a contributor to Seeking Alpha since 2017 and is frequently quoted in various publications, with his articles appearing on popular trading apps like Robinhood [1]

Core Insights - The focus for 2025 is on driving a substantial rotation in investment portfolios, particularly increasing allocations to consumer discretionary and enterprise software stocks [1] Group 1: Investment Strategy - The strategy emphasizes a shift towards beaten-down sectors, specifically consumer discretionary and enterprise software [1] Group 2: Analyst Background - Gary Alexander has extensive experience covering technology companies on Wall Street and has worked in Silicon Valley, providing insights into current industry themes [1] - He has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications [1]