Is Williams-Sonoma Inc. A Perfect Sell?
Williams-Sonoma: Unappreciated Housing Recovery Play
Alan Brochstein, CFA
Alan Brochstein, CFA
Yesterday, 5:39 PM
Yesterday, 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.
Yesterday, 4:16 PM
Tue, May 24, 5:35 PM
Thu, Mar. 31, 9:19 AM
- Barclays initiates coverage on Williams-Sonoma (NYSE:WSM) with an Underweight rating.
- The investment firm assigns a $45 price target to the retail stock vs. $65 consensus PT.
- The ratings action from Barclays stands in contrast ot he bullish views from Telsey Adisory Group, JPMorgan, Argus, and some SA contributors.
- Now read Whipping Up Value With Williams-Sonoma »
Thu, Mar. 17, 11:28 AM
- Williams-Sonoma (NYSE:WSM) is down 5.5% after results for the Pottery Barn business acted as a drag in Q4.
- Comparable-store sales growth at Pottery Barn was down 2% during the quarter.
- The company's e-commerce growth rate of 2.9% also looks light compared to some peers.
- 2016 revenue guidance from Williams-Sonoma came in at $5.15B-$5.25B vs. $5.29B consensus.
- Previously: Williams-Sonoma misses by $0.03, misses on revenue (Mar. 16 2016)
Wed, Mar. 16, 5:39 PM
Wed, Mar. 16, 4:36 PM
Wed, Mar. 16, 4:20 PM
Tue, Mar. 15, 5:35 PM
Fri, Mar. 11, 9:47 AM
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.
Thu, Feb. 11, 11:46 AM
- There's some nervous trading on stocks associated with consumers spending money on their houses. Today's macroeconomic news and stock market decline are cutting into confidence over consumer spending patterns.
- Pier 1 Imports (PIR -7.9%), Mattress Firm (MFRM -3.1%), Tile Shop (TTS -2.9%), Lumber Liquidators (LL -5.8%), Restoration Hardware (RH -3.6%), Bed Bath & Beyond (BBBY -2.5%), La-Z-Boy (LZB -3%), Kirkland's (KIRK -2.3%), and Williams-Sonoma (WSM -2.5%) are all lower than broad market averages.
- Lowe's (LOW -1.5%) and Home Depot (HD -1.2%) are showing a milder loss.
Tue, Jan. 19, 2:45 PM
- A major push by IKEA to increase online sales could have a ripple effect across the furniture industry.
- Home24 CEO Domenico Cipolla thinks IKEA's reach will help it familiarize consumers with the process of buying furniture online. The development could help his firm and other Internet-based sellers.
- On the brick-and-mortar side, analysts warn as IKEA moves more items online some major chains will see pricing pressure.
- IKEA is also testing a smaller-store format which leans on selling online fulfillment.
- Related stocks: LZB, PIR, RH, TGT, ETH, WSM, HVT.
Thu, Jan. 7, 10:52 AM
- A mix of positive holiday sales report peppered throughout the retail sector has brought chain store stocks back into focus.
- Add sub-$2 gas prices along with a low level of jobless claims to the mix and investors are warming back up to to beat-up sector.
- Most of the gainers against a down market day have a heavy concentration of sales in the U.S.
- The Container Store (TCS +3.8%), Ulta Salon (ULTA +1.4%), Vitamin Shoppe (VSI -0.3%), Chico's FAS (CHS +2.9%), Dillard's (DDS +2.7%), Williams-Sonoma (WSM +1.7%), Dick's Sporting Goods (DKS +1.2%), Burlington Stores (BURL +4%).
- Previously: Retail chain stocks rally as $2 gas in U.S. outweighs turmoil in China (Jan. 07 2016)
Dec. 29, 2015, 12:11 PM
- A report from MasterCard on a 7.9% increase in holiday spending is creating some optimism that retailers selling in certain categories could surprise with Q4 earnings.
- Double-digit sales gains were recorded for furniture spending (RH, PIR, HVT, BBBY, ETH, HOFT, OTCPK:BEST, W, LZB, OTCPK:LEFUF, BSET, WSM, RH, KIRK) and women's apparel (NWY, LB, ASNA) while the men's apparel and electronics categories were left behind.
- A late sales rush is also usually a positive sign for Signet (NYSE:SIG) and Tiffany (NYSE:TIF).
- Previously: Late rush may have turned holiday season around (Dec. 28)
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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