- Williams-Sonoma’s adjusted operating margin was 19.5% as against 12.9% year over year (y/y), better than the projected 13.7%.
- The adjusted earnings per share (EPS) was $3.48 compared to $2.64 last year, surpassing the estimate of $2.74.
- Net revenue stood at $1.66 billion, showing a decrease of 5.4% compared to last year and aligned with the estimate.
- Fiscal Q1 saw a fall in comparable sales by 4.9%, against the previous year’s decrease of 6%, performing better than the estimate of -6.17%.
- Pottery Barn segment experienced a decline in comparable sales of 10.8%, showing a faster decline than the previous year’s -0.4% and the estimate of -7.78%.
- Recovery seen in the William-Sonoma Segment, which witnessed a 0.9% increase in comparable sales after a 4.4% decline last year and meeting the estimate of 0.9%.
- West Elm’s comparable sales have declined by 4.1%, showing significant improvement over last year’s -15.8% and better performance than the estimated -8.57%.
- Pottery Barn kids and teen segment saw an increase in comparable sales by 2.8%, down from 216% last year and lower than the estimate of 3.96%.
- The gross margin for the quarter was 48.3% as against 38.5% y/y.
- In terms of store count, total stores were 517 in line with estimates, while Williams Sonoma stores were 156, better than the estimate of 154.1.
- The report notes that the 2024 fiscal year will have an extra week, and all year-over-year comparisons will involve the extra week. An increase of 150bps to net revenue growth and 10bps to operating margin is expected as a result of this extra week.
- It is expected that the annual interest income will be approximately $40 million and the annual effective tax rate will be approximately 25.5% for the fiscal year 2024.
Williams Sonoma on Smartkarma
Analyst coverage of Williams Sonoma on Smartkarma includes a report by Baptista Research titled “Williams-Sonoma Inc.: Macro-Economic Uncertainty & 3 Major Challenges In Its Path – Major Drivers.” The report discusses the company’s recent performance, highlighting both successes and challenges. In the latest earnings, Williams-Sonoma, Inc. faced a -6.8% comp, -7.4% in the 2-year comp, and a +29.1% in the 4-year comp, indicating a mixed performance.
Baptista Research‘s analysis provides valuable insights into the factors influencing Williams Sonoma‘s performance in the face of macro-economic uncertainty and major challenges. The report, authored by Baptista Research, leans towards a bullish sentiment, offering a detailed examination of the key drivers impacting Williams Sonoma‘s prospects in the market.
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, known for its retail of cooking and serving equipment, home furnishings, and accessories, has received a mixed bag of Smart Scores. With a high momentum score of 5, the company seems to be on a strong upward trajectory in the near future. This momentum, coupled with a solid growth score of 4, hints at potential long-term expansion for the company.
However, Williams Sonoma falls short in terms of value and dividend scores, both receiving a score of 2. This suggests that investors may not find the stock particularly attractive in terms of its current valuation and dividend payouts. Despite these lower scores, the company’s resilience score of 3 indicates a moderate ability to withstand economic downturns and challenges. Overall, Williams Sonoma‘s future outlook appears promising with a strong focus on growth and momentum.
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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