Retail and consumer discretionary has been a horrific sector the last few months. One name we have traded several times and currently hold a house position consisting of trading profits is Williams-Sonoma (NYSE: WSM ). We think this correction down toSelloff got you down? We are thriving during it at BAD BEAT InvestingWe have the right high-conviction picks that have done well in this selloff. We also have pinpointed areas to buy during the correction. Enjoy more rapid-returns with our strategy to advance y ...

Financial Data and Key Metrics Changes - In Q4 2024, the company reported a positive comp of 3.1%, exceeding expectations, with an operating margin of 21.5% and earnings per share of $3.28, marking a 20.6% increase year-over-year [6][7][58] - For the full year 2024, net revenues reached $7.7 billion, with a full-year comp of negative 1.6% and a record annual operating margin of 17.9% [9][58][62] - The company ended the year with a cash balance of $1.2 billion and no debt, with merchandise inventory at $1.3 billion, up 6.9% year-over-year [63][64] Business Line Data and Key Metrics Changes - Pottery Barn experienced a negative 0.5% comp in Q4 but had a positive 37.6% comp over five years, with a focus on reducing promotional activity and improving margins [24][25] - The Williams-Sonoma brand reported a positive comp of 5.7% in Q4, driven by strong retail execution and product innovation [31][32] - The B2B segment achieved over $1 billion in revenues with a 10% comp, marking a record-breaking performance [35] Market Data and Key Metrics Changes - Retail stores delivered a positive 7% comp in Q4, while e-commerce saw a positive 1.3% comp, with e-commerce constituting nearly 66% of total revenues for the year [52][59] - The company noted strength in key growth markets, including Canada, Mexico, and India, with continued growth in sales and market share [42][43] Company Strategy and Development Direction - The company aims to deliver core brand growth through innovation and partnerships, focusing on a robust non-furniture assortment to mitigate housing market challenges [11][12] - Investments in AI and enhanced design services are part of the strategy to improve customer experience and operational efficiency [17][19] - The company plans to expand its emerging brands and optimize its retail strategy while maintaining a strong focus on customer service and earnings growth [15][20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the foundation laid for growth and profitability despite macroeconomic uncertainties, emphasizing the importance of their strategic initiatives [10][21] - The guidance for 2025 includes expectations for flat to positive 3% comps and operating margins between 17.4% and 17.8%, factoring in current tariffs [23][70][71] Other Important Information - The company generated free cash flow of $1.1 billion in 2024 and returned nearly $1.1 billion to shareholders through share repurchases and dividends [64] - A 16% increase in the quarterly dividend payout to $0.66 per share was announced, marking the 16th consecutive year of increased dividends [73] Q&A Session Summary Question: How does SG&A leverage differ between flat comp and plus 3% comp? - Management indicated that while they do not provide specific guidance on SG&A, they expect some leverage from expense savings to offset gross margin headwinds from tariffs [78][79] Question: How do you see e-commerce versus stores performing in 2025? - Management expressed optimism for both channels, with e-commerce expected to remain around 66% of total revenues [85][86] Question: What is the structural opportunity for higher product margins? - Management highlighted their competitive advantage in design and sourcing, which allows them to navigate tariff impacts effectively while maintaining margins [96][98] Question: What is the impact of tariffs on gross margin? - The guidance includes the full impact of tariffs, with management outlining a plan to offset these through vendor concessions and supply chain efficiencies [110][118] Question: What are the early trends in Q1 2025? - Management noted that while trends are difficult to read due to the late Easter, they remain optimistic based on strong responses to their strategies [128][130]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and improve content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

For the quarter ended January 2025, Williams-Sonoma (WSM) reported revenue of $2.46 billion, up 8% over the same period last year. EPS came in at $3.28, compared to $2.72 in the year-ago quarter. The reported revenue represents a surprise of +5.35% over the Zacks Consensus Estimate of $2.34 billion. With the consensus EPS estimate being $2.91, the EPS surprise was +12.71%. Comparable store sales - Total - YoY change: 3.1% compared to the -2.2% average estimate based on seven analysts. Number of stores - Pot ...

分组1 - Williams-Sonoma reported quarterly earnings of $3.28 per share, exceeding the Zacks Consensus Estimate of $2.91 per share, and up from $2.72 per share a year ago, representing an earnings surprise of 12.71% [1] - The company achieved revenues of $2.46 billion for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 5.35%, and an increase from $2.28 billion year-over-year [2] - Over the last four quarters, Williams-Sonoma has consistently surpassed consensus EPS estimates four times and revenue estimates three times [2] 分组2 - The stock has underperformed the market, losing about 7% since the beginning of the year compared to the S&P 500's decline of 4.5% [3] - The company's earnings outlook is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $1.76 on revenues of $1.66 billion, and for the current fiscal year, it is $8.53 on revenues of $7.63 billion [7] 分组3 - The Retail - Home Furnishings industry, to which Williams-Sonoma belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, which may impact stock performance [8] - Another company in the same industry, Lovesac, is expected to report quarterly earnings of $1.80 per share, reflecting a year-over-year decline of 3.7%, with revenues projected at $228.65 million, down 8.7% from the previous year [9]

Financial Data and Key Metrics Changes - In Q4, the company reported a positive comp of 3.1%, exceeding expectations, with an operating margin of 21.5% and earnings per share of $3.28 [7][34] - For the full year, net revenues reached $7.7 billion, with a full year comp of -1.6% and a record annual operating margin of 17.9% [8][41] - Q4 gross margin was 47.3%, up 130 basis points year over year, driven by improved merchandise margins and supply chain efficiencies [37][38] Business Line Data and Key Metrics Changes - Pottery Barn experienced a negative comp of -0.5% in Q4 but had a five-year comp of 37.6% [19] - The Williams Sonoma brand reported a positive comp of 5.7% in Q4, with a five-year comp of 35.5% [23] - West Elm saw a substantial improvement with a positive comp of 4.2% in Q4, supported by strong performance in furniture and seasonal textiles [22] Market Data and Key Metrics Changes - The company gained market share despite a challenging housing market, outperforming the industry decline of 2% in Q4 [7] - E-commerce constituted nearly 66% of total revenues for the full year, with a negative comp of -2.5% [42] Company Strategy and Development Direction - The company aims to drive core brand growth through innovation and partnerships, focusing on non-furniture assortments to mitigate housing market challenges [9][10] - B2B is identified as a significant growth driver, leveraging design strengths and commercial-grade product offerings [10][26] - The company plans to enhance customer experiences through investments in design services and AI capabilities [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the foundation laid for growth and profitability despite macroeconomic uncertainties [8][32] - The guidance for 2025 anticipates comps to be flat to positive 3%, with operating margins between 17.4% and 17.8% [18][50] Other Important Information - The company generated free cash flow of $1.1 billion in 2024 and returned nearly $1.1 billion to shareholders through share repurchases and dividends [45][46] - The company plans to spend between $275 million and $300 million in capital expenditures in 2025, focusing on e-commerce and supply chain efficiency [52] Q&A Session Summary Question: How do you see SG&A leverage on a flat comp versus a plus 3% comp? - Management indicated that while specific guidance is not provided, they expect some leverage in SG&A from expense savings to offset gross margin headwinds from tariffs [58][60] Question: How do you see e-commerce versus stores performing in 2025? - Management expressed optimism about both channels, with e-commerce expected to remain around 66% of total revenues [63] Question: What is your tariff posture embedded in the guide? - The guidance includes the full impact of tariffs, with proactive measures in place to offset these costs through vendor concessions and supply chain efficiencies [90][92] Question: Have you seen any weakness in consumer spending? - Management noted that their strategies are resonating with consumers, particularly in non-furniture categories, and they are optimistic about the upcoming quarters [88][102] Question: What are your plans for the store base in 2025? - Management emphasized the importance of retail stores as profit centers and brand billboards, indicating a positive outlook for the retail business [108]

Financial Performance - Q4 comparable brand revenue increased by 3.1%[5] - Record Q4 operating margin reached 21.5%, with diluted EPS of $3.28, up 20.6% year-over-year[5][2] - Full-year fiscal 2024 operating margin was a record 17.9%, with annual diluted EPS of $8.50[2] - Operating income for fiscal 2024 was $1.43 billion, with an operating margin of 18.6%[9] - Net earnings for the fiscal year ended February 2, 2025, were $1,125,251, a 18.5% increase from $949,762 in the prior year[24] - Basic earnings per share (EPS) rose to $8.91 for the fiscal year ended February 2, 2025, compared to $7.35 in the previous year[24] - Operating income for the fiscal year ended February 2, 2025, was $1,430,184 thousand, reflecting an increase from $1,244,193 thousand the previous year, marking a growth of about 15%[31] - Non-GAAP diluted EPS for the fiscal year ended February 2, 2025, was $8.79, compared to $7.43 for the previous year, representing an increase of approximately 18.1%[31] Revenue and Growth - Fiscal 2025 outlook projects annual net revenues to range from -1.5% to +1.5%, with comparable sales expected to be flat to +3.0%[9] - Net revenues for the fourteen weeks ended February 2, 2025, were $2,462,218, a 8.0% increase from $2,278,937 for the thirteen weeks ended January 28, 2024[21] - Total net revenues for the fiscal year ended February 2, 2025, were $7,711,541, a slight decrease of 0.5% from $7,750,652 in the prior year[24] - Pottery Barn's comparable brand revenue declined by 6.2% for the fiscal year 2024, while Williams Sonoma saw a growth of 2.4%[24] Margins and Profitability - Gross margin for Q4 was 47.3%, up 130 basis points year-over-year, driven by occupancy leverage, higher merchandise margins, and supply chain efficiencies[5] - Gross profit margin improved to 47.3% for the fourteen weeks ended February 2, 2025, compared to 46.0% for the same period last year[21] - The company reported a gross profit of $1,165,625 thousand for the fourteen weeks ended February 2, 2025, with a gross margin of 47.3%, compared to 46.0% for the thirteen weeks ended January 28, 2024[31] Expenses and Costs - SG&A expenses for Q4 totaled $635 million, an increase of 7.6% year-over-year, with an SG&A rate of 25.8%[5] - Selling, general and administrative expenses for the fourteen weeks ended February 2, 2025, were $635,484 thousand, accounting for 25.8% of revenues, compared to 25.9% in the previous period[31] - The company incurred exit costs of $17.9 million during Q1 2023, primarily related to the closure of a West Coast manufacturing facility[31] Cash and Liquidity - The company maintained a strong liquidity position with $1.2 billion in cash and $1.4 billion in operating cash flow[9] - Cash and cash equivalents decreased to $1,212,977 as of February 2, 2025, from $1,262,007 a year earlier[27] - Cash in excess of $200 million was reported at $1,012,977 thousand as of February 2, 2025, compared to $1,062,007 thousand the previous year[34] Shareholder Returns - Quarterly dividend increased by 16% to $0.66 per share[7] - The company repurchased $807,477 in common stock during the fiscal year, significantly higher than $313,001 in the previous year[30] Future Outlook - Long-term expectations include mid-to-high single-digit annual net revenue growth and operating margins in the mid-to-high teens[9] - The effective tax rate for the fiscal year ended February 2, 2025, was 24.3%, consistent with the previous year's rate of 25.4%[32] - The return on invested capital (ROIC) for the fiscal year ended February 2, 2025, was 54.0%, up from 45.0% in the prior year, indicating improved capital efficiency[34] - Total assets as of February 2, 2025, were $5,301,607 thousand, a slight increase from $5,273,548 thousand as of January 28, 2024[34]

Core Viewpoint - Williams-Sonoma, Inc. is expected to report strong financial results for the fourth quarter, with earnings and revenue projected to increase compared to the previous year [1] Financial Performance - The company is projected to report quarterly earnings of $2.93 per share, an increase from $2.72 per share in the same period last year [1] - Quarterly revenue is expected to reach $2.35 billion, up from $2.28 billion a year earlier [1] - In the third quarter, Williams-Sonoma reported better-than-expected results and approved a $1 billion stock repurchase authorization [2] Stock Performance - Following the third-quarter results, Williams-Sonoma shares rose by 4.5%, closing at $175.00 [2] Analyst Ratings - Goldman Sachs analyst Kate McShane maintained a Neutral rating and increased the price target from $170 to $224 [3] - Morgan Stanley analyst Simeon Gutman maintained an Equal-Weight rating and raised the price target from $170 to $195 [3] - Wells Fargo analyst Zachary Fadem maintained an Equal-Weight rating and increased the price target from $165 to $185 [3] - Wedbush analyst Seth Basham maintained a Neutral rating and raised the price target from $135 to $175 [3] - TD Cowen analyst Max Rakhlenko maintained a Buy rating and boosted the price target from $165 to $195 [3]

Core Viewpoint - Williams-Sonoma, Inc. is expected to report strong fourth-quarter fiscal 2024 results, driven by operational efficiencies and resilient consumer demand, despite macroeconomic challenges [9][20]. Financial Performance - In the third quarter of fiscal 2024, Williams-Sonoma reported earnings per share (EPS) of $1.96, exceeding estimates by 11.4%, and revenue of $1.80 billion, reflecting a 2.9% year-over-year decline but outperforming industry trends [2][3]. - The company achieved an operating margin of 17.8%, an improvement of 80 basis points from the previous year [2]. - The Zacks Consensus Estimate for the fourth-quarter EPS has increased, indicating a projected 7% growth from the year-ago figure, with revenues expected to reach $2.34 billion, a 2.5% year-over-year increase [5][20]. Market Position and Competitive Landscape - Williams-Sonoma has consistently surpassed earnings expectations, with an average surprise of 17.8% over the last four quarters [3][4]. - The company is well-positioned for the holiday shopping season, benefiting from improved demand in home furnishings and decor, which constitutes about 50% of its sales mix [10]. - Key competitors, including Wayfair and Ethan Allen, have also reported sequential improvements, indicating increased competition in the market [10]. Strategic Initiatives - The company's solid operating model, including full-price selling and supply chain efficiencies, is expected to mitigate headwinds in the fiscal fourth quarter [11]. - The B2B segment continues to be a significant growth driver, particularly in hospitality and corporate gifting markets, alongside global expansion efforts [12][21]. - Williams-Sonoma's focus on digital strategy and e-commerce is expected to enhance its market position, with approximately 66% of sales currently derived from online platforms [20]. Margin and Sales Trends - The company is projected to experience a 120 basis points expansion in gross margin to 47.2% year-over-year, driven by supply chain efficiencies [13]. - Comparable sales are expected to contract by 1.2% in the fiscal fourth quarter, an improvement from previous declines, indicating some stabilization in consumer demand [12]. Stock Performance and Valuation - Year-to-date, Williams-Sonoma stock has declined by 9.6%, slightly better than the Zacks Retail - Home Furnishings industry's decline of 10.4% [16]. - The company is trading at a discount to the industry average, with a trailing 12-month Return on Equity (ROE) of 51.6%, reflecting efficient use of shareholder funds [18].

Group 1 - Williams-Sonoma, Inc. is set to release its fourth-quarter financial results on March 19, with expected earnings of $2.93 per share, an increase from $2.72 per share in the previous year [1] - The company projects quarterly revenue of $2.35 billion, compared to $2.28 billion a year earlier [1] - The current annual dividend yield for Williams-Sonoma is 1.36%, translating to a quarterly dividend of 57 cents per share, or $2.28 annually [2] Group 2 - To achieve a monthly income of $500 from dividends, an investment of approximately $440,860 or around 2,632 shares is required [2] - For a more modest monthly income of $100, an investment of $88,105 or around 526 shares is necessary [2] - The dividend yield can fluctuate based on changes in the stock price and dividend payments [3][5] Group 3 - As of the last trading session, shares of Williams-Sonoma increased by 1.5%, closing at $167.50 [5]