Mon, Sep. 19, 10:59 AM
- Williams-Sonoma (WSM +1.4%) backs prior guidance for FY16 EPS of $3.45 to $3.55. The mid-point of the company's range is ahead of the consensus estimate of $3.50.
- The company's three-year outlook is for revenue growth in the mid to high single-digits and EPS growth at a double-digit to mid-teens pace.
- Management expects to pay out 35% to 49% of net income in dividends.
- Williams-Sonoma presentation slides (.pdf)
Fri, Sep. 16, 5:01 PM
Mon, Aug. 29, 1:51 PM
- Tracking data from NPD Group indicates Williams-Sonoma (WSM +1.2%) doesn't have as broad of reach as some peers.
- NPD reports that over the last 12 months only 1% of U.S. consumers purchased a product from the chain, compared to 35% at Bed, Bath & Beyond and 5% at Pier 1 Imports.
- Shares of WSM are about 1.5% higher than where they stood a week ago in a bouncy period of trading on either side of earnings.
- Previously: Williams-Sonoma EPS in-line, misses on revenue (Aug. 24)
- Previously: Williams-Sonoma cuts Q3, FY 2017 guidance (Aug. 24)
Sat, Aug. 27, 11:34 AM
- Many retailers are tightening up this year by reducing their store count or converting more locations to e-commerce fulfillment centers. Analysts note that although the strategy will lower revenue, over time the group should see improved bottom lines as underperforming stores are cut back and online efficiency improves. Amid the skittish trading with chain store stocks there could be some value deals.
- Store chains that currently trade with a PE ratio below 15 and offer a dividend yield of at least 2% include: TLRD, BKE, SMRT, GPS, AEO, CHS, CATO, TGT, KSS, M, HVT, WSM, PIR, BKS, OUTR, ODP, SPLS.
- ETFs: XLY, XRT, VCR, RTH, RETL, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, JHMC, CNDF.
Wed, Aug. 24, 6:19 PM
- Williams-Sonoma (NYSE:WSM) wavers between gains and losses AH after reporting in-line Q2 earnings and revenues but guiding Q3 earnings below consensus and lowering its outlook for FY 2017.
- WSM says total Q2 comparable brand revenue growth was 0.6%, falling 4.8% Y/Y for Pottery Barn - the company’s largest brand by revenue - while coming in flat at Williams-Sonoma and jumping 15.8% at West Elm; merchandise inventories at the end of Q2 fell 6.6% to $963M from $1.03B at the end of Q2 2015.
- Saying it is feeling the effects of “a more cautious consumer," WSM cuts its 2017 sales and profit guidance, seeing EPS of $3.35-$3.55 vs. analyst consensus of $3.57 and its prior outlook of $3.50-$3.65, with revenues of $5.075B-$5.225B vs. $5.22 consensus and prior guidance of $5.15-$5.25B and 1%-4% growth in comparable brand revenue vs. previous guidance of 3%-6% growth.
- For Q3, WSM forecasts EPS of $0.75-$0.80 vs. $0.81 consensus, revenues of $1.235B-$1.285B vs. $1.28B consensus, and comparable brand revenue growth of 0-4%.
Wed, Aug. 24, 4:15 PM
Tue, Aug. 23, 5:35 PM
Wed, Aug. 17, 11:16 AM
- Soft earnings reports from Target, Lowe's, and Staples are tainting the retail sector today.
- A loose theme among the trio is that they are feeling the impact of general store traffic pressure on one front and under-performing Amazon on the e-commerce side (or Home Depot in the case of Lowe's).
- Notable movers include Office Depot (ODP -7%), Pier 1 Imports (PIR -2.7%), Haverty Furniture (HVT -1.1%), Sears Holdings (SHLD -6.5%), Stage Stores (SSI -3%), Nordstrom (JWN -2.4%), Tilly's (TLYS -0.8%), Zagg (ZAGG -2.7%), Party City (PRTY -1.3%), J.C. Penney (JCP -4.4%), Restoration Hardware (RH -4.1%) Bed Bath & Beyond (BBBY -1.9%), Williams-Sonoma (WSM -2.8%), and Kohl's (KSS -2.3%),
- Looking ahead, Wal-Mart (WMT -0.3%) reports earnings tomorrow before the bell. The same-store sales bar is relatively low after the company guided for a 1% gain for U.S. SSS and with the consensus estimate of analysts even lower at +0.9%. Perhaps more important than Q2 numbers will be the comments from Wal-Mart management on the Jet.com integration and the impact of higher base wages.
Fri, Jul. 29, 9:23 AM
- Household spending by consumers increased 4.2% in Q2 to mark the best pace for the category since late in 2014.
- The strong read on consumer spending contrasts with the tightening by businesses amid Brexit fears, F/X pain, and political jitters.
- Retail ETFs trail broad stock market averages on the year after a May swoon, although most of the damage has been from the mall sector. Companies with a thriving e-commerce business and/or high mix of U.S. sales have held up.
- Despite the painful headline Q2 GPD miss today, the underlying resiliency shown by consumers could bode well for a variety of retailers such as Amazon (NASDAQ:AMZN), Target (NYSE:TGT), Wal-Mart (NYSE:WMT), Costco (NASDAQ:COST), Kroger (NYSE:KR), Lululemon (NASDAQ:LULU), Dollar General (NYSE:DG), PriceSmart (NASDAQ:PSMT), and Williams-Sonoma (NYSE:WSM) to name a few (add your own ideas in the comments).
- Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE, JHMS, IBUY, CNSF, CNDF, JHMC
Wed, Jun. 22, 9:40 AM
- Restoration Hardware (RH +2.8%) spikes after BB&T says Williams-Sonoma (WSM +1.4%) may acquire the chain at $50 per share. A deal would be accretive to WSM's earnings at a rate of 16% to FY17 EPS and 25% to FY18 EPS, according to a rough estimate.
- Restoration Hardware slipped to a 52-week low of $26 yesterday.
Fri, Jun. 17, 7:41 PM
Thu, Jun. 9, 12:23 PM
- Retail stocks are broadly lower after a weak earnings report from Restoration Hardware (RH -21.2%) set a gloomy tone. The S&P Retail ETF (NYSEARCA:XRT) is 1.91% lower on the day.
- Williams-Sonoma (WSM -4.8%) and Bed Bath & Beyond (BBBY -3.7%) are down sharply after the RH guidance dud.
- Mall chain and department store stocks are also seeing some anxious trading as investors continue to bet on discounters and variety stores which target budget shoppers.
- Notable decliners include Ascena Retail (ASNA -5.4%), Guess (GES -3.2%), Nordtrom (JWN -3.1%), Urban Outfitters (URBN -2.6%), Cato (CATO -2.6%), DSW (DSW -2.6%), and Gap (GPS -2%).
- Target (NYSE:TGT) is down 1.6% after a rough annual meeting where there was much more attention paid to the company's transgender bathroom policy than execs probably desired.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR, JHMC, CNDF
Thu, Jun. 2, 9:04 AM
- Williams-Sonoma (NYSE:WSM) is on watch after BTIG starts coverage off with a stinging Sell rating and $45 price target.
- Analyst Alan Rifkin cites concerns over EBIT margin with the retailer's labor costs and new store investments weighing heavily on the bottom line. A higher mix of e-commerce is also a drag on EBIT margin for Williams-Sonoma.
- WSM -0.85% premarket to $52.70 in light premarket action.
Wed, May 25, 5:39 PM
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