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 ...

Williams-Sonoma (WSM) came out with quarterly earnings of $1.74 per share, beating the Zacks Consensus Estimate of $1.64 per share. This compares to earnings of $1.56 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 6.10%. A quarter ago, it was expected that this seller of cookware and home furnishings would post earnings of $1.39 per share when it actually produced earnings of $2.04, delivering a surprise of 46.76%. Over the ...

Revenue Performance - Q2 comparable brand revenue decreased by 3.3%[1] - Net revenues for the thirteen weeks ended July 28, 2024, were $1,788,307 thousand, a decrease of 3.9% compared to $1,862,614 thousand for the same period in 2023[15] - Net earnings for the twenty-six weeks ended July 28, 2024, increased to $491,411,000, compared to $358,038,000 for the same period in 2023, representing a growth of 37.1%[21] Profitability Metrics - Q2 operating margin was 16.2%, with diluted EPS growth of 11.5% to $1.74[1][2] - Gross profit increased to $826,326 thousand, representing 46.2% of revenues, compared to $757,567 thousand or 40.7% of revenues in the prior year[15] - Operating income for the quarter was $289,916 thousand, which is 16.2% of revenues, up from $271,548 thousand or 14.6% in the previous year[15] - Net earnings reached $225,745 thousand, a 12.6% margin, compared to $201,507 thousand or 10.8% in the same quarter last year[15] - Non-GAAP gross profit for the twenty-six weeks ended July 28, 2024, was $1,628,841,000, reflecting a gross margin of 47.2%, compared to $1,432,626,000 or 39.6% in the same period last year[25] Expense Management - SG&A expenses increased by 10.4% year-over-year to $536 million, with an SG&A rate of 30.0%[2][3] - Selling, general and administrative expenses for the second quarter were $536,410,000, accounting for 30.0% of revenues, compared to $486,019,000 or 26.1% in the prior year[25] Cash Flow and Liquidity - Strong liquidity position maintained with $1.3 billion in cash and operating cash flow of $246 million[3] - Net cash provided by operating activities for the twenty-six weeks ended July 28, 2024, was $473,283,000, down from $714,985,000 in the prior year[21] - Cash and cash equivalents at the end of the period were $1,265,259,000, compared to $514,435,000 at the end of the same period last year[21] - The company reported a net cash used in financing activities of $398,222,000, down from $476,593,000 in the previous year[21] Inventory and Asset Management - Merchandise inventories decreased by 4.1% year-over-year to $1.2 billion[3] - Total current assets as of July 28, 2024, were $2,744,297 thousand, up from $2,719,797 thousand at the end of January 2024[16] - Total assets decreased to $5,211,672 thousand from $5,273,548 thousand at the end of January 2024[16] - Total liabilities decreased to $2,961,442 thousand from $3,145,687 thousand at the end of January 2024[16] - Retained earnings increased to $1,728,063 thousand from $1,555,595 thousand at the end of January 2024[16] Future Outlook - Full year revenue outlook revised to a range of down 4.0% to down 1.5%, while operating margin guidance raised to 17.4% to 17.8%[2][4] - Fiscal 2024 is a 53-week year, expected to contribute 150 basis points to net revenue growth[4][5] - Long-term expectations include mid-to-high single-digit annual net revenue growth and operating margin in the mid-to-high teens[5] Store Operations - The company opened 6 new retail stores and closed 2, resulting in a total of 521 stores as of July 28, 2024[19] Tax and Exit Costs - The effective tax rate for the second quarter was 26.0%, compared to 26.7% in the prior year[23] - The company incurred exit costs of $17.9 million during Q1 2023, primarily related to the closure of a manufacturing facility[26]

Williams-Sonoma, Inc. (WSM) is scheduled to release second-quarter fiscal 2024 results on Aug 22, before market open. In the first quarter of fiscal 2024, Williams-Sonoma delivered strong financial results, with earnings per share (EPS) of $2.04, surpassing expectations by 65 cents, despite a 5.4% year-over-year revenue decline to $1.66 billion. The company achieved a 19.5% operating margin, boosted by a $49 million reversal of freight-related accruals. Without this adjustment, the margin was 16.6%. WSM's s ...

Group 1: Stock Performance - Williams-Sonoma (WSM) closed at $141.03, reflecting a +1.74% change from the previous session, outperforming the S&P 500's gain of 1.61% [1] - The stock has decreased by 7.64% over the past month, underperforming the Retail-Wholesale sector's loss of 4.92% and the S&P 500's loss of 2.88% [1] Group 2: Earnings Projections - The upcoming earnings report projects earnings per share (EPS) of $1.45, a decrease of 7.05% from the same quarter last year [2] - Revenue is estimated at $1.82 billion, indicating a 2.53% decrease compared to the same quarter of the previous year [2] - For the entire fiscal year, earnings are projected at $7.24 per share and revenue at $7.76 billion, representing changes of -2.56% and +0.14% from the prior year, respectively [3] Group 3: Analyst Projections and Rankings - Recent shifts in analyst projections for Williams-Sonoma are important as they reflect changing business trends, with positive revisions indicating analyst optimism [4] - The Zacks Rank system, which includes estimate changes, currently ranks Williams-Sonoma at 3 (Hold), with a recent downward shift of 0.19% in the EPS estimate [5][6] Group 4: Valuation Metrics - Williams-Sonoma has a Forward P/E ratio of 19.16, which is higher than the industry's average Forward P/E of 18.83 [7] - The company's PEG ratio stands at 2.35, compared to the industry average PEG ratio of 2.14 [7] Group 5: Industry Context - The Retail - Home Furnishings industry is part of the Retail-Wholesale sector and holds a Zacks Industry Rank of 215, placing it in the bottom 16% of over 250 industries [8]

Core Viewpoint - Williams-Sonoma is positioned to potentially continue its earnings-beat streak in the upcoming report, having shown a strong history of exceeding earnings estimates, particularly in the last two quarters with an average surprise of 27.14% [1] Earnings Performance - For the last reported quarter, Williams-Sonoma achieved earnings of $2.04 per share, surpassing the Zacks Consensus Estimate of $1.39 per share by 46.76%. In the previous quarter, the company reported earnings of $2.72 per share against an expectation of $2.53 per share, resulting in a surprise of 7.51% [2] Earnings Estimates - Recent estimates for Williams-Sonoma have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of another earnings beat, especially when combined with its Zacks Rank [3][6] Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time, suggesting a high probability of exceeding consensus estimates [4] Earnings ESP Definition - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which may provide a more accurate prediction of earnings [5] Current Earnings ESP - Williams-Sonoma currently has an Earnings ESP of +15.87%, indicating that analysts are optimistic about the company's earnings prospects, which, when combined with its Zacks Rank 3, suggests a potential for another earnings beat [6] Importance of Earnings ESP - While many companies may beat consensus EPS estimates, the Earnings ESP is a crucial metric to assess before quarterly releases, as it can significantly increase the odds of success in predicting stock movements [7]

Williams-Sonoma (WSM) closed the most recent trading day at $137.79, moving -0.92% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.77%. Meanwhile, the Dow lost 0.6%, and the Nasdaq, a tech-heavy index, lost 1.05%. The the stock of seller of cookware and home furnishings has fallen by 2.21% in the past month, leading the Retail-Wholesale sector's loss of 7.43% and the S&P 500's loss of 5.85%. Analysts and investors alike will be keeping a close eye on the p ...

Williams-Sonoma (WSM) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Shares of this seller of cookware and home furnishings have returned -2.2% over the past month versus the Zacks S&P 500 composite's -5.9% change. The Zacks Retail - Home Furnishings industry, to which WilliamsSonoma belongs, has gained 6.3% over this period. Now the key question is: Where could the stock be h ...

The seller of cookware and home furnishings's shares have seen an increase of 10.14% over the last month, surpassing the Retail-Wholesale sector's loss of 2.44% and the S&P 500's loss of 0.21%. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. The Retail - Home Furnishings industry is part of the Retail- ...