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 ...

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 ...