PresentationSimeon GutmanMorgan Stanley, Research Division All right. We're in business. Hi, everyone. Good morning. It's Simeon Gutman of Morgan Stanley's hardline, broadline and food retail analyst. Welcome to day 1 of our Global Consumer and Retail Conference. I'm pleased to introduce Arhaus represented by Michael Lee, CFO. It's an interesting crossroads with a housing home improvement, home furnishings world that is stagnant, but starting to show some signs of life. This is an eclectic growth story with ...

Arhaus (NasdaqGS:ARHS) 2025 Conference December 02, 2025 08:00 AM ET Company ParticipantsMichael Lee - CFOConference Call ParticipantsSimeon Gutman - Executive Director and Senior Equity AnalystSimeon GutmanAll right, we're in business. Hi everyone, good morning. It's Simeon Gutman. I'm Morgan Stanley's hardline, broadline, and food retail analyst. Welcome to day one of our Global Consumer and Retail Conference. I'm pleased to introduce Arhaus, represented by Michael Lee, CFO. It's an interesting crossroads ...

Bed Bath & Beyond, Inc. (NYSE:BBBY) shares traded higher on Tuesday after the retailer unveiled new deal plans.Bed Bath & Beyond agreed to acquire The Brand House Collective, Inc. (NASDAQ:TBHC) in an all-stock transaction valuing the target at about $26.8 million, using Nov. 21 closing prices.The agreement gives Brand House investors 0.1993 Bed Bath & Beyond shares for each Brand House share.Also Read: Jim Cramer: This Tech Stock Is ‘Losing Too Much Money', Recommends Buying Mettler-ToledoThat exchange rati ...

Williams-Sonoma, Inc. (NYSE:WSM) is one of the stocks on Jim Cramer’s radar recently. Cramer discussed the company’s earnings during the episode, as he said: “What’s happening with the stock of Williams-Sonoma? This morning, the furniture and home goods chain, which also owns Pottery Barn and West Elm, reported a solid top and bottom-line beat. First, the stock jumped more than 4%, but then it gave back those gains during the conference call when we heard that there might be a significant tariff hit this ...

Group 1 - Merion Road Capital Management's Small Cap Fund returned 5.0% in Q3 2025, underperforming the Russell 2000 Index which returned 12.4% [1] - The long-only portfolio of Merion Road achieved a return of 10.1%, outperforming the S&P 500's return of 8.1% [1] - The strong performance of Kratos significantly contributed to the portfolio's results [1] Group 2 - American Woodmark Corporation (NASDAQ:AMWD) experienced a one-month return of -25.78% and a 52-week loss of 50.80% [2] - As of November 20, 2025, AMWD's stock closed at $47.84 per share, with a market capitalization of $696.98 million [2] - Merion Road Capital Management purchased shares in AMWD following its merger announcement with Masterbrand (MBC), highlighting identified synergies of $90 million relative to approximately $490 million in EBITDA, representing an 18% increase [3] - MBC management is one year into the acquisition of Supreme and reports that integration is on track, with AMWD's standardized product offering making manufacturing adjustments easier compared to Supreme's high-end products [3]

Williams-Sonoma Inc. (NYSE:WSM) posted another solid quarter, with resilient sales and industry-leading margins. However, the stock slipped as investors looked ahead to a sharply higher tariff bill that threatens to squeeze profitability heading into 2026.Telsey Advisory Group analyst Cristina Fernández reaffirmed her Outperform rating on Williams-Sonoma but lowered her price forecast to $220 from $225, applying a ~24x P/E multiple to her updated 2026 EPS estimate.She said the company delivered a good third ...

Core Insights - Williams-Sonoma's CEO Laura Alber provided an update on the impact of tariffs on the company's business, indicating that the next quarter will experience a more significant effect due to a larger percentage of inventory being subject to tariffs [1][2] - The company reported better-than-expected earnings but noted that the impact of tariffs on gross margins is taking longer to materialize than anticipated [1] - Shares of Williams-Sonoma closed down 3.39% following the announcement [1] Tariff Impact - Alber expressed hope for stability and predictability regarding tariffs by the end of the year, suggesting that they are unlikely to increase further [2] - The company is facing a greater impact in Q4 compared to Q3 as a larger portion of its inventory is now affected by tariffs [2] Mitigation Strategies - Williams-Sonoma is actively working to mitigate losses from tariffs by renegotiating vendor deals and reducing reliance on certain countries, particularly China [2] - The company is increasing domestic manufacturing, with a significant portion of its upholstered furniture already produced in Mississippi and North Carolina [2] Pricing Strategy - The company is "carefully increasing prices" and reviewing areas where products are underpriced, while also substantially reducing promotions to improve regular price selling [3] - Alber indicated that once tariffs are fully integrated into the cost structure, the company will move forward and focus on growth, viewing the situation as more short-term than long-term [3]

Core Insights - The company reported a net loss of approximately $7.9 million for Q3 2025, an improvement from a net loss of $9.2 million in the same quarter of the previous year, indicating a positive trend in financial performance [18] - Adjusted EBITDA for Q3 2025 was approximately negative $650,000, representing a 38% year-over-year improvement compared to negative $1 million in Q3 2024 [19] - The company is focusing on launching five new influencer-led brands in 2026, which are expected to drive revenue growth and mitigate tariff impacts by sourcing products domestically [31][24] Financial Performance - Net licensing revenues for Q3 2025 were $1.1 million, down from $1.5 million in Q3 2024, primarily due to cautious consumer spending and lower performance in the Halston license [12] - Direct operating costs decreased by 23% year-over-year to $2.2 million in Q3 2025, attributed to business transformation and cost reduction efforts [13] - The company had a net loss of approximately $14.7 million for the nine months ended September 30, 2025, compared to a net loss of $15.3 million for the same period in the previous year [19] Strategic Developments - The company closed a $2 million net equity offering in Q3 2025, with management and insiders investing a total of $935,000 [5] - The company is exploring new business opportunities, including leveraging partnerships for product supply and potential acquisitions [6] - The addition of Olin Lancaster as Chief Revenue Officer is expected to enhance the company's strategic direction and brand launches [22] Market Positioning - The company is well-positioned to capitalize on the shift from linear TV to digital streaming and social commerce, with a social media reach of 46 million people across its brand portfolio [7] - The company anticipates reaching 100 million followers across its brand portfolio by 2026, indicating strong growth potential [8] - The Halston brand is undergoing adjustments in merchandising and design to improve performance, with expectations for growth in 2026 [11] Future Outlook - The company plans to diversify into new sales channels and expand product categories, particularly in home and garden and beverage sectors [31] - Analysts project potential revenue growth in 2026, with expectations for sequential increases each quarter as new brands are launched [33] - The company aims to achieve significant royalty income from its brands, with potential valuations indicating a disconnect between current market cap and asset value [35][37]

Williams-Sonoma (NYSE:WSM) Q3 2026 Earnings Call November 19, 2025 10:00 AM ET Company ParticipantsSteven Zaccone - Director of Equity Research and Retail Broadlines and HardlinesMax Rakhlenko - TD CowenLaura Alber - CEOJeff Howie - CFOJeremy Brooks - Chief Accounting Officer and Head of Investor RelationsPeter Benedict - Managing Director of Equity ResearchChuck Grom - Managing DirectorOliver Wintermantel - Managing DirectorSameer Hassan - Chief Technology and Digital OfficerConference Call ParticipantsNon ...

Financial Data and Key Metrics Changes - In Q3, the company reported net revenue of $1.88 billion, achieving a positive comparable sales growth of 4% across all brands [25][30] - Operating margin expanded by 10 basis points to 17%, with earnings per share increasing by 5% year over year to $1.96 [6][29] - Gross margin improved to 46.1%, 70 basis points higher than the previous year, driven by higher merchandise margins and supply chain efficiencies [26][30] Business Line Data and Key Metrics Changes - Retail channel experienced a strong performance with a positive 8.5% comparable sales growth in Q3, while e-commerce grew by 1.9% [8][26] - The B2B segment grew by 9% in Q3, indicating strength in both trade and contract sales [9][17] - Pottery Barn achieved a positive 1.3% comparable sales growth, while West Elm reported a positive 3.3% growth, and Williams-Sonoma brand saw a 7.3% increase [12][15][16] Market Data and Key Metrics Changes - The company gained market share despite a decline in the overall industry, which faced challenges in Q3 [7][25] - The housing market remained weak, yet the company managed to improve furniture comps, indicating resilience in its product offerings [46] Company Strategy and Development Direction - The company is focused on three key priorities: returning to growth, elevating customer service, and driving earnings [5][37] - Strategic collaborations and innovations in product offerings are aimed at attracting new customers and maintaining brand relevance [9][10] - The company is leveraging AI to enhance customer service and operational efficiency, with AI-powered chat experiences now live across all brands [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for Q4, reiterating full-year guidance for comparable brand revenue growth in the range of 2%-5% [7][32] - The company is actively mitigating tariff impacts through a six-point plan, which includes cost concessions from vendors and supply chain efficiencies [11][34] - Management acknowledged the ongoing geopolitical uncertainties and the lack of improvement in the housing market but remains optimistic about the company's performance [7][37] Other Important Information - The company plans to invest between $250 million and $275 million in capital expenditures for fiscal year 2025, focusing on e-commerce and supply chain efficiency [36] - A $1 billion share repurchase authorization was approved, bringing the total to approximately $1.6 billion, reflecting the company's commitment to returning cash to shareholders [36] Q&A Session Summary Question: Discussion on price elasticity and its impact on comps - Management noted that pricing strategies vary by product category, emphasizing the importance of innovation and customer service in maintaining pricing power [40] Question: Impact of tariffs on future quarters - Management explained that tariffs are taking longer to affect margins due to delayed effective dates and aggressive inventory management, with a larger impact expected in Q4 [42][43] Question: Broader category performance and underlying improvements - Management highlighted the positive momentum in furniture sales despite a weak housing market, indicating strong brand performance and improved in-store experiences [45][46] Question: Guidance on holiday season performance - Management acknowledged the wide range of revenue guidance for Q4, attributing it to the long holiday season and the focus on reducing promotions compared to the previous year [50][51] Question: Concerns about maintaining operating margins amid tariffs - Management reiterated confidence in their six-point mitigation plan to offset tariff impacts, while acknowledging the uncertainty in the tariff landscape [53][57] Question: Future unit growth and store openings - Management indicated potential for new store growth, particularly in the West Elm brand, while maintaining a cautious approach to overall store count [58][59]