Is Williams-Sonoma Inc. A Perfect Sell?
Williams-Sonoma: Unappreciated Housing Recovery Play
Alan Brochstein, CFA
Alan Brochstein, CFA
Wed, May 25, 4:26 PM
- Williams-Sonoma (NYSE:WSM) reports comparable brand revenue growth of 4.5% in Q1. All the company's brands showed positive comp growth, led by West Elm (+19%) and Williams-Sonoma (+3.5%).
- E-commerce revenue increased 8.2% to $576M.
- Key metrics: Gross margin rate -100 bps Y/Y to 35.8%. Operating margin rate on a non-GAAP basis was 7.0%. Merchandise margin was lower during the quarter.
- Williams Sonoma guides for Q2 revenue of $1.145B to $1.175B vs. $1.17B consensus and EPS of $0.54 to $0.60 vs. $0.60 consensus. The view for the full-year is revenue of $5.15B to $5.25B vs. $5.21B and EPS of $3.50 to $3.60 vs. $3.55 consensus.
- Previously: Williams-Sonoma beats by $0.03, beats on revenue (May 25)
- WSM +3.84% AH to $54.00.
Wed, May 25, 4:16 PM
Tue, May 24, 5:35 PM
Wed, Mar. 16, 4:20 PM
Tue, Mar. 15, 5:35 PM
Wed, Feb. 24, 4:42 PM
- Restoration Hardware (NYSE:RH) expects to report FQ4 revenue of $647.2M (+11% Y/Y) and EPS of $0.99, well below a consensus of $710.9M and $1.39. Comparable brand revenue is expected to be up 9% Y/Y.
- In a shareholder letter, CEO Gary Friedman blames weaker-than-expected delivered revenue (shipping delays played a role), underperformance "in markets affected by energy, oil, or currency fluctuations" - Canada, Texas, and Miami are named - and a smaller-than-expected payoff for increased promotional activity, something RH considers reflective of high-end consumer weakness. "Our sense is the increased volatility in the US stock markets, especially the extreme conditions in January, which is historically our biggest month of the quarter for furniture sales, contributed to our performance."
- In 2016, RH plans to focus on "ramping production and improving in-stocks for RH Modern and our core RH Interiors business," making "opportunistic" real estate purchases, improving the customer experience, strengthening its brand, and changing its "promotional cadence."
- Restoration is down 22% after hours to $40.31. Williams-Sonoma (NYSE:WSM) is down 8% to $52.25. Restoration's official FQ4 results are due on March 23.
Nov. 19, 2015, 4:18 PM
- Williams-Sonoma (NYSE:WSM): Q3 EPS of $0.77 beats by $0.05.
- Revenue of $1.23B (+7.9% Y/Y) beats by $10M.
- Shares -1.8%.
Nov. 18, 2015, 5:35 PM
Aug. 26, 2015, 5:24 PM
- Williams-Sonoma (NYSE:WSM) -6.1% AH after reporting in-line Q2 earnings and guiding Q3 and FY 2015 earnings below analyst consensus.
- For Q3, WSM sees EPS of $0.68-$0.73 vs. $0.75 analyst consensus estimate on revenues of $1.19B-$1.22B vs. $1.22B consensus; for FY 2015, it sees EPS of $3.35-$3.45 vs. $3.48 consensus on revenues of $4.95B-$5.02B vs. $5.01B consensus.
- In Q2, WSM says it incurred incremental supply chain costs, primarily due to the west coast port disruption; West Elm, a brand that targets millennials, saw the biggest Q2 comparable brand revenue growth at 15.7%, while comp gains for Pottery Barn, Pottery Barn Kids and PBteen brands came in at 6.4%, 3.3% and 3.9%, respectively, while the Williams-Sonoma brand's comps fell 0.3%.
- Q2 operating margin fell to 7.4% from 8.2%, and overhead costs rose 8.9%.
Aug. 26, 2015, 4:16 PM
- Williams-Sonoma (NYSE:WSM): Q2 EPS of $0.58 in-line.
- Revenue of $1.13B (+8.7% Y/Y) beats by $20M.
Aug. 25, 2015, 5:35 PM
May 20, 2015, 4:23 PM
- Williams-Sonoma (NYSE:WSM) reports total comparable brand sales were up 4.6% in Q1.
- Comp growth by brand: Pottery Barn +2.4%, Williams Sonoma +2.7%, Pottery Barn Kids +0.8%, PBteen +3.0%, West Elm +15.3%.
- E-commerce sales +8.4% to $533M.
- Operating margin -60 bps to 7.0%.
- SG&A expense rate -40 bps to 29.8%.
- Merchandise inventory +10.9% to $943M.
- Previously: Williams-Sonoma beats by $0.03, beats on revenue
- WSM +4.6% after hours.
May 20, 2015, 4:11 PM
- Williams-Sonoma (NYSE:WSM): Q1 EPS of $0.48 beats by $0.03.
- Revenue of $1.03B (+5.7% Y/Y) beats by $20M.
May 19, 2015, 5:35 PM
Mar. 18, 2015, 4:23 PM
- Williams-Sonoma (NYSE:WSM) grew sales and margins in Q4.
- Comparable brand revenue growth of 5.1% was realized during the quarter with the West Elm business a notable out-performer.
- E-commerce revenue +9% to $770 to mark half of the company's total sales.
- Operating margin +60 bps to 15.4%.
- WSM -1.8% after hours.
Williams-Sonoma, Inc. operates as a multi-channel specialty retailer. The company operates its business through two segments: E-commerce and Retail. The e-commerce segment has the following merchandising strategies: Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, PBteen,... More
Industry: Home Furnishing Stores
Country: United States
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