- Williams-Sonoma’s adjusted operating margin for the fourth quarter was reported at 20.1%, beating the estimated 20%.
- The net revenue for the company saw a decrease of 7.1% year on year, totalling $2.28 billion. However, this was still higher than the estimated $2.22 billion.
- Comparable sales for the Williams-Sonoma segment saw a rise of 1.6%, as compared to a decrease of 2.5% year on year. This also surpassed the estimated decrease of 1.71%.
- The gross margin for the company was reported at 46%, a significant rise from the 41.2% reported the previous year.
- Williams-Sonoma operated a total of 518 stores, a quarterly decrease of 2.8%. This was lower than the estimated 521.91 stores.
- Out of the total number of stores, 156 were Williams-Sonoma stores, 121 were West Elm stores, 46 were Pottery Barn Kids stores, and 11 were Rejuvenation stores.
- The company expects an annual net revenue growth ranging between -3% to +3% in fiscal 2024. The comparable sales are expected to range between -4.5% to +1.5%. The operating margin is expected to be between 16.5% to 16.8%.
- Despite the slow housing market and geopolitical unrest in 2023, Williams-Sonoma managed to outperform its expectations.
- The company has transformed its business model, resulting in an operating margin that exceeded its pre-pandemic profitability.
- At present, the company has received 5 buys, 14 holds, and 7 sells from investors.
A look at Williams Sonoma Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
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
According to the Smartkarma Smart Scores, Williams Sonoma has a promising long-term outlook. The company scores a 2 in Value, indicating that it has strong potential for growth and profitability. This is supported by its high score of 4 in Growth, which suggests that Williams Sonoma is expected to experience significant expansion in the future.
In addition, the company scores a 3 in Dividend, indicating that it has a stable dividend payout. This is good news for investors who are looking for consistent returns. Williams Sonoma also scores a 3 in Resilience, suggesting that it has a strong ability to weather economic downturns and maintain its operations.
Finally, Williams Sonoma scores the highest possible score of 5 in Momentum, which indicates that the company has strong positive momentum and is expected to continue its upward trajectory. This is supported by its description as a company that retails high-quality home furnishings and accessories through various channels, including retail stores and e-commerce. Overall, the Smartkarma Smart Scores indicate a positive outlook for Williams Sonoma and its potential for long-term success.
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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