Is Williams-Sonoma Inc. A Perfect Sell?
Williams-Sonoma: Unappreciated Housing Recovery Play
Alan Brochstein, CFA
Alan Brochstein, CFA
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
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.
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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