- Williams-Sonoma’s 2Q net revenue was $1.79 billion, missing the estimate of $1.81 billion and down 4% year-over-year.
- Comparable sales decreased by 3.3%, which was better than the previous year’s decrease of 11.9%, but missed the estimate of -2.5%.
- Pottery Barn’s comparable sales dropped by 7.1%, an improvement from the previous year’s decline of 10.6%, but short of the estimated -4.98%.
- Williams-Sonoma Segment comparable sales were down by 0.8%, close to the previous year’s -0.7%, but higher than the estimate of -0.25%.
- West Elm’s comparable sales decreased 4.8%, a vast improvement from the previous year’s drop of 20.8%, but missed the estimate of -1.58%.
- Pottery Barn Kids and Teen’s comparable sales increased by 1.5%, beating last year’s 9% decline and the estimate of 0.42%.
- Total number of stores stood at 521, up 0.8% quarter-over-quarter, exceeding the estimate of 515.5.
- Williams-Sonoma stores totaled 158, a decline of 3.7% year-over-year, but above the estimate of 154.8.
- West Elm stores numbered 122, up 0.8% quarter-over-quarter, aligning with the estimate of 121.3.
- Pottery Barn Kids stores held steady at 45, matching both the previous quarter and the estimate.
- Rejuvenation stores remained constant at 11, against an estimate of 11.22.
- The operating margin improved to 16.2% from 14.6% year-over-year.
- Full-year revenue is now expected to decline between 1.5% and 4.0%, but operating margin guidance has been raised to 17.4%-17.8%.
- For fiscal 2024, operating margin is expected to be between 18.0% and 18.4%, including adjustments.
- Annual interest income is projected to be around $45 million, with an effective tax rate of approximately 25.5%.
- Earnings per share for Q2 were $1.74, reflecting a 2-for-1 stock split completed in July.
- The company reported five buys, sixteen holds, and five sells in their latest evaluation.
Williams Sonoma on Smartkarma
Analyst coverage of Williams Sonoma on Smartkarma has been insightful, with reports from Baptista Research shedding light on important aspects of the company’s performance. In one report titled “Williams-Sonoma Inc.: How They Are Focusing On Innovative High-Quality Products To Expand Revenues! – Major Drivers” by Baptista Research, it was noted that Williams-Sonoma Inc. had a robust first quarter of 2024 with a stronger than expected upward trend in profitability. The operating margin was recorded at 19.5% and the earnings per share stood at $4.07, showcasing promising financial metrics.
Another report by Baptista Research, titled “Williams-Sonoma Inc.: Macro-Economic Uncertainty & 3 Major Challenges In Its Path – Major Drivers,” highlighted a mix of successes and challenges faced by Williams-Sonoma, Inc. in its latest earnings. Despite a -6.8% comp in Q4, the company has been navigating through macro-economic uncertainty and addressing major challenges in its path. These detailed insights provided by independent analysts play a crucial role in helping investors make informed decisions regarding their investments in Williams Sonoma.
A look at Williams Sonoma Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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., known for its various retail brands like Williams-Sonoma and Pottery Barn, is positioned for a positive long-term outlook based on Smartkarma Smart Scores. With solid scores in Growth, Resilience, and Momentum, the company shows promise for future expansion and consistent performance. While the Value score is moderate, indicating fair valuation, the higher scores in Dividend and Growth suggest good potential for income and development. Additionally, the company’s resilience score highlights its ability to withstand challenges, giving investors confidence in its stability over time.
Overall, Williams Sonoma‘s strong scores in Growth, Resilience, and Momentum showcase a favorable outlook for the company’s future prospects. With a diverse range of products in the home and kitchen space sold through various channels including e-commerce, Williams Sonoma is well-positioned for continued growth and success in the retail sector.
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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