Williams-Sonoma CEO Laura Alber told CNBC's Jim Cramer how the company is dealing with the effects of President Donald Trump's tariff hikes."We've been busy," she said. "And we've also been reminded, you know, it's important to have that flexible mindset, but also to have options in sourcing, and particularly with our big programs, to have...different alternatives."The home goods and furniture outfit owns several retail brands alongside its namesake, including Pottery Barn and West Elm. It posted quarterly ...

Core Insights - Williams-Sonoma, Inc. reported strong Q1 FY2025 results, with comparable brand revenue increasing by 3.4% and all brands achieving positive comps, marking a significant recovery in furniture sales for the first time since Q4 FY2022 [12][17][41] - The company emphasized supply chain efficiencies and cost discipline as key drivers of profitability, gaining market share in a contracting home furnishings industry [12][41] - A six-point tariff mitigation plan was implemented to manage costs associated with new tariffs, allowing the company to maintain its full-year guidance despite external pressures [9][25][51] Financial Performance - Comparable brand revenue increased by 3.4% in Q1 FY2025, with net revenues reaching $1.73 billion [12][42] - Operating margin improved to 16.8%, up 70 basis points year-over-year, while GAAP earnings per share (EPS) were $1.85, reflecting an 8.8% increase [3][41][46] - Gross margin was reported at 44.3%, down 60 basis points from the previous year, primarily due to a 220 basis point decline in merchandise margins from higher input costs [4][43] Expense Management - Selling, General, and Administrative (SG&A) expenses were 27.5% of revenues, a decrease of 130 basis points year-over-year, driven by lower employment and advertising expenses [5][45] - The company maintained a disciplined approach to managing costs, which contributed to the strong operating margin and EPS growth [41][46] Brand and Segment Performance - Retail comparable sales rose by 6.2%, while e-commerce comps increased by 2.1% [6][42] - The B2B segment grew by 8%, contributing significantly to overall revenue growth, alongside strong performances from emerging brands like Rejuvenation and Mark and Graham [6][20][35] Inventory and Cash Position - Inventory at the end of Q1 was $1.3 billion, up 10% year-over-year, including a strategic pull-forward of $60 million to mitigate tariff impacts [7][46][78] - The company ended the quarter with $1 billion in cash and no outstanding debt, following $58 million in capital expenditures and $165 million returned to shareholders [7][46] Guidance and Future Outlook - The company reiterated its guidance for FY2025, expecting comparable brand revenue growth of flat to 3% and operating margins between 17.4% and 17.8% [8][50] - The focus remains on returning to growth, enhancing customer service, and driving earnings, with a commitment to managing tariff-related costs effectively [24][54]

Group 1: Earnings Performance - Williams-Sonoma reported quarterly earnings of $1.85 per share, exceeding the Zacks Consensus Estimate of $1.76 per share, but down from $2.04 per share a year ago, representing an earnings surprise of 5.11% [1] - The company posted revenues of $1.73 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 3.73% and up from $1.66 billion year-over-year [2] Group 2: Stock Performance and Outlook - Williams-Sonoma shares have declined approximately 9.3% since the beginning of the year, contrasting with the S&P 500's decline of -0.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.79 on revenues of $1.8 billion, and for the current fiscal year, it is $8.46 on revenues of $7.68 billion [7] Group 3: Industry Context - The Retail - Home Furnishings industry, to which Williams-Sonoma belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Williams-Sonoma (WSM) Q1 2026 Earnings Call May 22, 2025 10:00 AM ET Company Participants Jeremy Brooks - Senior VP, Chief Accounting Officer & Head of IRLaura Alber - President, CEO & DirectorJeff Howie - Executive VP & CFOMax Rakhlenko - Managing DirectorJonathan Matuszewski - Senior Vice PresidentSimeon Gutman - Managing DirectorEmily Ghosh - Equity Research Associate Conference Call Participants Bradley Thomas - Managing Director & Equity Research AnalystPeter Benedict - Senior Research AnalystCristina ...

Financial Data and Key Metrics Changes - In Q1 2025, the company reported net revenues of $1.73 billion, achieving a positive comp of 3.4%, exceeding expectations [38] - Operating margin was 16.8%, with earnings per share (EPS) of $1.85, reflecting an earnings growth of 8.8% [6][42] - Gross margin was 44.3%, which was 360 basis points lower than the previous year when accounting for a $49 million out of period adjustment [39] Business Line Data and Key Metrics Changes - Pottery Barn achieved a positive comp of 2% in Q1, with a five-year comp of 46.7% [17] - The Williams Sonoma brand reported a strong quarter with a positive comp of 7.3% and a five-year comp of 36.9% [23] - The B2B program grew by 8%, marking another record-breaking quarter [9] Market Data and Key Metrics Changes - The home furnishings industry contracted approximately 3% in Q1, while the company gained market share [38] - Retail channel comps were up 6.2%, and e-commerce comps increased by 2.1% [38] Company Strategy and Development Direction - The company is focused on three key priorities: returning to growth, elevating customer service, and driving earnings [7][13] - A strong pipeline of new products and strategic collaborations are emphasized to drive brand growth [8] - The company is actively managing tariff impacts through a six-point plan, including cost concessions from vendors and sourcing goods from lower tariff countries [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and is optimistic about gaining market share in 2025 [13][52] - The company is committed to enhancing customer experiences and operational efficiencies, with a focus on AI integration across digital platforms [10][12] Other Important Information - The company plans to spend between $250 million and $275 million in capital expenditures for fiscal year 2025, prioritizing e-commerce and supply chain efficiency [50] - The quarterly dividend was increased by 16% year-over-year, marking the sixteenth consecutive year of increased payouts [51] Q&A Session Summary Question: Merchandise margins decline - Management clarified that merchandise margins were impacted by higher input costs but offset by supply chain efficiencies and occupancy leverage [58][60] Question: Pricing strategy regarding tariffs - The company emphasized a reduced promotional strategy and a focus on value beyond just price, leveraging direct vendor relationships for better pricing [64][66] Question: Inventory position and its impact on sales - The inventory was strategically increased by 10% to mitigate tariff impacts, with a focus on being in stock to drive sales [86][90] Question: Demand trends throughout the quarter - Management noted strong results across all brands, with furniture achieving positive comps for the first time in nine quarters [77][105] Question: Reducing exposure to China - The company has proactively reduced sourcing from China and is flexible in adjusting sourcing strategies based on the trade environment [81] Question: Tariff mitigation costs - Management explained that tariff mitigation costs were short-term expenses, with expectations of future benefits from proactive inventory management [99][101]

Core Viewpoint - Williams-Sonoma, Inc. is set to release its first-quarter fiscal 2025 results, with expectations of mixed performance due to various market factors impacting sales and earnings [1][5]. Financial Performance - In the last reported quarter, Williams-Sonoma's earnings exceeded the Zacks Consensus Estimate by 12.7%, marking a year-over-year increase of 20.6%. Revenues also surpassed expectations by 5.4%, with an 8% year-over-year growth [1]. - The average earnings surprise over the last four quarters has been 19.2%, indicating a consistent trend of better-than-expected performance [2]. Q1 Estimates - The Zacks Consensus Estimate for Q1 earnings per share (EPS) is $1.76, reflecting a decrease of 13.7% from $2.04 reported in the same quarter last year. Revenue expectations are set at $1.67 billion, a slight increase of 0.5% from $1.76 billion year-over-year [3]. Factors Influencing Performance - Expected growth in the first quarter is attributed to the multi-channel, multi-brand platform, strong e-commerce growth, strategic initiatives, digital leadership, and product innovation. International expansion and new collaborations are also anticipated to support growth [4]. - However, the challenging sales environment in the home furnishings sector, particularly due to the weak U.S. housing market, is likely to negatively impact results. Fluctuations in mortgage rates and reduced consumer spending following tariff announcements may further exacerbate this issue [5]. Brand Performance Projections - Revenue projections for the Pottery Barn brand are estimated at $658.9 million, a decline of 2.7% year-over-year. West Elm's revenues are expected to reach $438.9 million, an increase of 2% from the previous year [6]. - The namesake brand's revenues are projected at $240.2 million, a slight increase of 0.8% year-over-year. Pottery Barn Kids and Teen brand revenues are expected to be $228.5 million, up 3% year-over-year [7]. Comparable Store Sales (Comps) Expectations - Pottery Barn Kids and Teen's comps growth is expected to be 3%, compared to a 2.8% increase a year ago. Pottery Barn's comps are projected to decline by 2.5% year-over-year, while West Elm's comps are expected to increase by 2% [8]. - The namesake brand's comps are anticipated to rise by 1%, showing a modest improvement from the previous year's 0.9% increase [9]. Earnings Prediction Model - The current model does not predict an earnings beat for Williams-Sonoma, as the Earnings ESP stands at -1.14% and the company holds a Zacks Rank of 3 (Hold) [11][12].

Core Insights - Lowe's reported quarterly earnings of $2.92 per share, exceeding the Zacks Consensus Estimate of $2.88 per share, but down from $3.06 per share a year ago, indicating an earnings surprise of 1.39% [1] - The company achieved revenues of $20.93 billion for the quarter, slightly surpassing the Zacks Consensus Estimate by 0.03%, but down from $21.36 billion year-over-year [2] - Lowe's has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Performance - The earnings surprise for the previous quarter was 5.46%, with actual earnings of $1.93 per share compared to an expected $1.83 [1] - The current consensus EPS estimate for the upcoming quarter is $4.25, with projected revenues of $24.01 billion, and for the current fiscal year, the estimates are $12.21 EPS on $84.19 billion in revenues [7] Stock Performance and Outlook - Lowe's shares have declined approximately 6.3% since the beginning of the year, contrasting with a 1% gain in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] - The outlook for the Retail - Home Furnishings industry, where Lowe's operates, is currently in the bottom 21% of over 250 Zacks industries, which may impact stock performance [8] Industry Context - Williams-Sonoma, a competitor in the same industry, is expected to report quarterly earnings of $1.76 per share, reflecting a year-over-year decline of 13.7%, with revenues anticipated at $1.67 billion, a 0.5% increase from the previous year [9][10]

Core Viewpoint - Home Depot reported quarterly earnings of $3.56 per share, slightly missing the Zacks Consensus Estimate of $3.59 per share, and showing a decrease from $3.63 per share a year ago, indicating an earnings surprise of -0.84% [1] Financial Performance - Home Depot's revenues for the quarter ended April 2025 were $39.86 billion, exceeding the Zacks Consensus Estimate by 1.15%, and up from $36.42 billion year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - Home Depot shares have declined approximately 2.5% since the beginning of the year, while the S&P 500 has gained 1.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $4.68 on revenues of $45.39 billion, and for the current fiscal year, it is $14.99 on revenues of $164.08 billion [7] - The outlook for the Retail - Home Furnishings industry, where Home Depot operates, is currently in the bottom 20% of Zacks industries, which may impact stock performance [8]

Core Viewpoint - Williams-Sonoma has demonstrated exceptional growth and performance, recently being added to the S&P 500, with significant gains over the past three years and a strong outlook for future growth [1][2][8]. Company Performance - Over the past three years, Williams-Sonoma has achieved a 216% increase in stock price, compared to a 52% increase for the S&P 500 [1]. - The company has seen a revenue growth of 119% and a net income increase of 617% over the past decade, with stock price surging by 312% [1]. - In the fourth quarter, net sales reached $2.46 billion, an 8% year-over-year increase, with comparable brand revenue up by 3.1% [7]. Market Position - Williams-Sonoma derives 66% of its revenue from e-commerce, successfully transitioning to digital retail [6]. - The company operates in a highly fragmented market with a total opportunity of $830 billion, having generated over $7.7 billion in sales last year [8]. Shareholder Practices - Since initiating dividends in 2006, Williams-Sonoma has increased its quarterly payment by 1,220%, with a recent 16% increase bringing it to $0.66 per share [9][10]. - The company has repurchased nearly 32% of its outstanding shares over the past decade, enhancing shareholder value [11]. Analyst Sentiment - Among 24 analysts, 7 rate the stock as a buy or strong buy, while 15 label it a hold, indicating a generally positive outlook despite some macroeconomic uncertainties [13]. - Telsey Advisory Group analyst Cristina Fernandez has a buy rating with a price target of $215, suggesting a potential upside of 24% [14].

Group 1 - The stock of company N Tai Li surged by 243% in the afternoon, triggering a temporary suspension of trading, with a transaction volume exceeding 700 million [1] - The company's main business includes the research, production, and sales of various home storage products and related functional materials, such as vacuum storage, wall-mounted storage, modified atmosphere preservation, outdoor equipment, and safety protection [1]