- Williams-Sonoma’s 1Q adjusted EPS beat estimates at $3.48 compared to last year’s $2.64, breaking the estimate of $2.74.
- The adjusted operating margin increased to 16.6% from 12.9% last year, outperforming the estimate of 13.7%.
- Net revenue was $1.66 billion, a fall of 5.4% year on year, matching the estimate.
- Comparable sales decreased by 4.9%, an improvement from last year’s decrease of 6%, and better than the estimated decrease of 6.17%.
- Pottery Barn’s comparable sales were down by 10.8%, a decline from last year’s decrease of 0.4%, and worse than the estimated decrease of 7.78%.
- Williams-Sonoma segment saw comparable sales increase by 0.9%, an improvement from last year’s decrease of 4.4%, in line with the estimate.
- West Elm’s comparable sales were down by 4.1%, an improvement from last year’s decrease of 15.8%, and better than the estimated decrease of 8.57%.
- Pottery Barn Kids and teen saw an increase in comparable sales of 2.8%, down from last year’s incredible 216%, and not as good as the estimated 3.96%.
- The gross margin was higher than expected at 45.4%, compared to last year’s 38.5%, and the estimate of 42%.
- The total number of stores decreased slightly from last year to 517, in line with the estimated 517.36 stores.
- Operating margin forecast for 2025 is 19.5%.
- The fiscal year 2024 will be a 53-week year, reporting a 53-week versus 53-week comparable basis.
- For the fiscal year 2024, annual interest income is expected to be approximately $40 million with an annual effective tax rate of 25.5%.
- The additional week in fiscal 2024 is expected to contribute 150bps to net revenue growth and 10bps to operating margin.
- Shares rose by 8% to $339.44 with 43,642 shares traded.
- The company is rated as 5 buys, 17 holds, and 4 sells by industry analysts.
Williams Sonoma on Smartkarma
Analyst coverage of Williams Sonoma on Smartkarma has recently been highlighted by Baptista Research. In their report titled “Williams-Sonoma Inc.: Macro-Economic Uncertainty & 3 Major Challenges In Its Path – Major Drivers“, Baptista Research delves into the latest earnings of Williams-Sonoma, Inc. The analysis points out a performance characterized by both successes and challenges. Specifically, in Q4, the company experienced a -6.8% comp, -7.4% in the 2-year comp, and a notable +29.1% in the 4-year comp.
A look at Williams Sonoma Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Williams Sonoma, Inc., a leading retailer of home goods, is positioned well for long-term success based on the Smartkarma Smart Scores. With high scores in Growth and Momentum, the company shows strong potential for future expansion and market performance. Williams Sonoma‘s focus on innovation and staying ahead of trends in the industry is reflected in its impressive Growth score.
Additionally, the company’s Resilience score indicates its ability to withstand challenges and adapt to changing market conditions. While the Value and Dividend scores are moderate, Williams Sonoma‘s overall outlook remains positive, supported by its established brands like Pottery Barn and West Elm that cater to a wide range of customers.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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