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Williams-Sonoma Stock Sinks as Retailer Cuts Full-Year Revenue Outlook

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]