Williams-Sonoma (WSM) ended the recent trading session at $146.12, demonstrating a +1.23% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.77%. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq appreciated by 0.87%. Heading into today, shares of the seller of cookware and home furnishings had lost 0.11% over the past month, lagging the Retail-Wholesale sector's gain of 5.56% and the S&P 500's gain of 4.87% in that time. The investment commu ...

Core Viewpoint - Williams-Sonoma's stock experienced a significant rebound in September, driven by strong profitability despite a projected decline in revenue [1][4]. Financial Performance - In August, Williams-Sonoma reduced its full-year revenue expectations, forecasting a decline of at least 1.5% instead of the previously anticipated 3% growth [2]. - The company raised its full-year operating margin guidance from 17% to a range of 17.4% to 17.8% [3]. - Despite a potential drop in revenue, Williams-Sonoma is expected to maintain similar operating profit levels, which attracted attention from Wall Street analysts [4]. Market Context - The company operates retail chains including Williams Sonoma, Pottery Barn, and West Elm, which saw a surge in demand during the COVID-19 pandemic, leading to record revenue [5]. - Following the pandemic, revenue has decreased from its peak, but this trend is seen as a natural adjustment as consumer behavior shifts [6]. Profitability Trends - Williams-Sonoma's operating margin has continued to increase, which is a positive sign for shareholders [7]. - The company has a history of stock buybacks and impressive dividend growth, making it attractive for dividend-focused investors [8]. Dividend Information - On September 12, Williams-Sonoma announced a dividend of $0.57 per share, scheduled for distribution on November 22 to shareholders holding shares by October 18 [8].

In the latest market close, Williams-Sonoma (WSM) reached $154.92, with a +0.37% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.42%. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq appreciated by 0.38%. Coming into today, shares of the seller of cookware and home furnishings had gained 14.9% in the past month. In that same time, the Retail-Wholesale sector gained 6.34%, while the S&P 500 gained 2.06%. The investment community ...

Core Viewpoint - The underlying demand trend for Williams-Sonoma, Inc. (NYSE:WSM) remains uncertain, leaning towards a negative outlook due to 2Q24 performance and macroeconomic data [3][11]. Company Overview - Williams-Sonoma, Inc. is a home furniture retailer operating key brands such as Williams-Sonoma, Pottery Barn, West Elm, and Pottery Barn Kids, with sales split between 34% retail and 66% e-commerce as of 2Q24, and operates 521 stores, generating 96% of revenue from the United States [4]. Earnings Results Update - In 2Q24, WSM reported a revenue decline of 4% year-over-year to approximately $1.8 billion, with comparable sales down 3.3%. Gross margin improved by 550 basis points to 46.2%, but SG&A as a percentage of sales increased by 390 basis points. EBIT grew by 6.8% year-over-year, resulting in an EPS increase of 11.4% to $1.74. Management has lowered FY24 revenue growth guidance to a range of -4% to -1.5% [5]. Demand Trend Is Uncertain - Current macro conditions indicate an uncertain demand environment for WSM, with mortgage rates potentially decreasing, which could boost home purchases and furniture demand. However, consumers are currently reducing discretionary spending, and confidence in the macro outlook remains low [6][7]. Gross Margin Has A Good Outlook - The outlook for gross margin expansion appears positive, driven by lower input costs, a strategy to sell products at full price, and supply chain efficiencies. These factors contributed to the 550 basis points expansion in the latest quarter [8][9]. Valuation Is Really Expensive - Despite a solid gross margin outlook, the current negative sales trend limits potential EPS growth. WSM is trading at a forward P/E of 16x, near its all-time high of 20x, while historically trading between 5x to 11x. The market seems to be pricing in expectations for a strong near-term recovery, which may not materialize [10]. Conclusion - The neutral view on WSM stems from prevailing macroeconomic conditions and recent sales declines, indicating an uncertain near-term demand outlook. While gross margin prospects are positive, the current valuation appears overly optimistic, risking a significant downward revision if expectations do not materialize [11].

Williams-Sonoma (WSM) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Shares of this seller of cookware and home furnishings have returned -12.7% over the past month versus the Zacks S&P 500 composite's +2.6% change. The Zacks Retail - Home Furnishings industry, to which WilliamsSonoma belongs, has lost 6.8% over this period. Now the key question is: Where could t ...

Williams-Sonoma Inc. (WSM) reported mixed results for second-quarter fiscal 2024 (ended Jul 30, 2024). The company's earnings beat the Zacks Consensus Estimate, but net revenues missed the same. On a year-overyear basis, the top line declined, but the bottom line increased on the back of the 2-for-1 stock split completed in July. Following the earnings release, shares of this multi-channel specialty retailer of premium quality home products lost 9.3% on Aug 22. Earnings, Revenues & Comps Discussion Non-GAAP ...

Fasai Budkaew/iStock via Getty Images Williams-Sonoma, Inc. (NYSE:WSM) is a stock that we traded in 2021 and have been running a long-term house position in for years. There have been positives, including a recent stock split to attract new investors, ongoing strength in the business despite a very questionable housing market, and the loss of the former catalyst of everyone staying and working at home. Through all of this, management has continued to execute. We think weakness should be bought into the fall ...

Core Insights - Williams-Sonoma shares declined significantly due to weaker-than-expected comparable sales, prompting the company to revise its full-year revenue projections downward [1][2][5] Company Performance - The company reported a net income of $225.7 million for the second quarter, which exceeded analysts' expectations [2] - Total revenue for the quarter was $1.79 billion, representing a 4% year-over-year decline and narrowly missing estimates [2] Sales Trends - Comparable sales fell more than anticipated, with declines of 0.8% at Williams-Sonoma, 7.1% at Pottery Barn, and 4.8% at West Elm [3] - The trend of higher-end retailers struggling is attributed to inflation, which has led consumers to prioritize essential spending and delay home-improvement projects [3] Market Context - Competitors like Target and TJX Companies have reported growth as consumers seek value, with Target noting increased sales in low-cost home update products [4] Revised Outlook - Williams-Sonoma now expects full-year revenue to decline between 4% and 1.5%, a revision from previous projections of a 3% drop to a 3% increase [5] - Comparable sales are anticipated to decline between 5.5% and 3%, compared to an earlier range of a 4.5% decline to a 1.5% increase [5] - As of Thursday afternoon, shares fell 8.6% to $131.54, although they remain up 30% year-to-date [5]

The home-furnishings retailer posted weak sales results in its second quarter. Shares of Williams-Sonoma (WSM -7.51%) were pulling back today after the high-end home furnishings company missed top-line estimates and posted declining comparable sales in its second-quarter report. As of 10:56 a.m. ET, the stock was down 8.5% on the news. Williams-Sonoma is still facing headwinds Like most of its home furnishings peers, Williams-Sonoma has struggled in the current environment as the sluggish housing market has ...

Williams-Sonoma (WSM) reported $1.79 billion in revenue for the quarter ended July 2024, representing a year-over-year decline of 4%. EPS of $1.74 for the same period compares to $1.56 a year ago. The reported revenue represents a surprise of -1.48% over the Zacks Consensus Estimate of $1.82 billion. With the consensus EPS estimate being $1.64, the EPS surprise was +6.10%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine t ...