Not The Williams-Sonoma Of Old

Oct. 11, 2022 11:00 AM ETWilliams-Sonoma, Inc. (WSM)12 Comments
Hindsight Investor profile picture
Hindsight Investor


  • The Covid-19 pandemic permanently changed Williams-Sonoma for the better.
  • Williams-Sonoma is operating phenomenally, with a focus on strategic store closures, ecommerce sales, and product quality and sustainability.
  • Williams-Sonoma has a reasonable path to achieve its long-term targets, pays a dividend, and is repurchasing shares.
  • At $119, shares appear undervalued from a DCF and P/E perspective. Savvy investors may take notice.

Williams-Sonoma at The Summit in South Reno

Brycia James

Investment Thesis

The Covid-19 pandemic had a lasting impact on many publicly traded companies. Depending on the business and industry, some had demand pulled forward while others had demand pushed back. Some were able to adapt while others were not. A lot

Table of WSM stores

WSM Store Count 2021 (WSM IR Website)

growth in ecommerce chart WSM

WSM Ecommerce Sales (WSM IR Website)

WSM product sustainability metrics

WSM Sustainability (WSM IR Website)

DCF calculation for WSM

DCF Analysis (Author's personal data)

P/E valuation for WSM

P/E Valuation (Author's personal data)

This article was written by

Hindsight Investor profile picture
My objective in investing is simple - I aim to beat the market. If I can't make a case for a stock to beat the S&P's historical return of 7-8% per year, I won't buy it. And wouldn't recommend you do either.I'm primarily a GARP investor with a strong focus on fundamentals. I cater to consumer discretionary stocks because these are within my circle of competence. I cover the occasional tech stock if I understand the business and/or am a paying customer.I love researching companies, analyzing financial statements and balance sheets, listening to earnings calls, and scouring Investor Relations websites. It's through this process I'm able to develop a thesis to the story.

Disclosure: I/we have a beneficial long position in the shares of WSM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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