- Williams-Sonoma (WSM +2.9%) rallies after unexpectedly reporting positive comparable sales in Q1 (+0.1% vs. -0.4% consensus).
- Sales improved at both the namesake Williams Sonoma chain and West Elm.
- Gross margin fell 20 bps to 35.6% of sales during the quarter.
- Shares of WSM raced higher in the AH session yesterday, but have pulled back after some cautious comments from analysts. The general theme from Wall Street is that Williams-Sonoma is likely to continue to see margin pressure in a highly competitive marketplace.