We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
In the last-reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 9.3% and 5.2%, respectively. On a year-over-year basis, earnings and revenues of this multi-channel specialty retailer of premium quality home products improved 19.4% and 9.7%, respectively.
Markedly, Williams-Sonoma reported better-than-expected earnings in the last four quarters, with the average being 11.6%.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has decreased to $3.76 from $3.79 over the past 30 days. That said, the estimated figure indicates an increase of 13.3% from $3.32 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $2.15 billion, suggesting 5.3% growth from the year-ago figure of $2.05 billion.
Strength across all brands, along with rising e-commerce growth, accelerating growth initiatives, and operational improvements, are expected to have contributed to Williams-Sonoma’s fiscal third-quarter performance. Notably, the accelerating online sales trend is expected to have meaningfully contributed to its top line in the to-be-reported quarter.
The multi-channel, multi-brand platform, strong e-commerce growth, solid execution of strategic initiatives, digital leadership, product innovation, retail transformation and operational excellence across businesses are also expected to have provided some support to the top line. Also, cross-brand initiatives are expected to have positively contributed to consolidated comps to some extent.
However, supply-chain disruptions and rising raw material and labor costs are likely to have weighed on its quarterly performance.
Importantly, slowing discretionary demand conditions along with the slowing macro (particularly housing) outlook and heavily over-inventoried industry are expected to weigh on the company’s results. Also, key leading indicators for WSM’s business, like existing home sales, are still depicting worrisome pictures. Softening category demand owing to inflationary pressure and macro and geopolitical concerns have been weighing on consumers’ capacity to spend on discretionary products.
The Zacks Consensus Estimate for Pottery Barn Kids and Teen’s comps growth is pegged at 5.7%. The same had improved 16.9% a year ago. In second-quarter fiscal 2022, comps improved 5.3% year over year.
The Zacks Consensus Estimate for Pottery Barn’s comps growth is pegged at 9.7%. The same improved 15.9% a year ago. In second-quarter fiscal 2022, comps grew 21.5% year over year.
The Zacks Consensus Estimate for West Elm’s comps growth is pegged at 6.7%. The metric was 22.5% a year ago and 6.1% in the last-reported quarter.
The Zacks Consensus Estimate for the namesake brand’s comps is pegged at down 0.3%. The metric came in at 7.6% growth a year ago and 0.5% in the last-reported quarter.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Williams-Sonoma this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -3.41%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks from the broader Retail-Wholesale sector that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat for the to-be-reported quarter:
Bath & Body Works, Inc. (BBWI - Free Report) has an Earnings ESP of +62.21% and a Zacks Rank #3.
BBWI’s earnings surpassed the consensus mark in all of the trailing four quarters, with the average surprise being 26.1%.
Dollar General Corporation (DG - Free Report) has an Earnings ESP of +2.35% and a Zacks Rank #3.
DG’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 2.2%, on average.
Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of +6.57% and a Zacks Rank #3.
DLTR’s earnings topped the consensus mark in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 8.6%, on average.
Image: Bigstock
Williams-Sonoma (WSM) to Report Q3 Earnings: What to Expect?
Williams-Sonoma, Inc. (WSM - Free Report) is scheduled to report third-quarter fiscal 2022 results on Nov 17, after the closing bell.
In the last-reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 9.3% and 5.2%, respectively. On a year-over-year basis, earnings and revenues of this multi-channel specialty retailer of premium quality home products improved 19.4% and 9.7%, respectively.
Markedly, Williams-Sonoma reported better-than-expected earnings in the last four quarters, with the average being 11.6%.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has decreased to $3.76 from $3.79 over the past 30 days. That said, the estimated figure indicates an increase of 13.3% from $3.32 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $2.15 billion, suggesting 5.3% growth from the year-ago figure of $2.05 billion.
WilliamsSonoma, Inc. Price and EPS Surprise
WilliamsSonoma, Inc. price-eps-surprise | WilliamsSonoma, Inc. Quote
Factors to Note
Strength across all brands, along with rising e-commerce growth, accelerating growth initiatives, and operational improvements, are expected to have contributed to Williams-Sonoma’s fiscal third-quarter performance. Notably, the accelerating online sales trend is expected to have meaningfully contributed to its top line in the to-be-reported quarter.
The multi-channel, multi-brand platform, strong e-commerce growth, solid execution of strategic initiatives, digital leadership, product innovation, retail transformation and operational excellence across businesses are also expected to have provided some support to the top line. Also, cross-brand initiatives are expected to have positively contributed to consolidated comps to some extent.
However, supply-chain disruptions and rising raw material and labor costs are likely to have weighed on its quarterly performance.
Importantly, slowing discretionary demand conditions along with the slowing macro (particularly housing) outlook and heavily over-inventoried industry are expected to weigh on the company’s results. Also, key leading indicators for WSM’s business, like existing home sales, are still depicting worrisome pictures. Softening category demand owing to inflationary pressure and macro and geopolitical concerns have been weighing on consumers’ capacity to spend on discretionary products.
The Zacks Consensus Estimate for Pottery Barn Kids and Teen’s comps growth is pegged at 5.7%. The same had improved 16.9% a year ago. In second-quarter fiscal 2022, comps improved 5.3% year over year.
The Zacks Consensus Estimate for Pottery Barn’s comps growth is pegged at 9.7%. The same improved 15.9% a year ago. In second-quarter fiscal 2022, comps grew 21.5% year over year.
The Zacks Consensus Estimate for West Elm’s comps growth is pegged at 6.7%. The metric was 22.5% a year ago and 6.1% in the last-reported quarter.
The Zacks Consensus Estimate for the namesake brand’s comps is pegged at down 0.3%. The metric came in at 7.6% growth a year ago and 0.5% in the last-reported quarter.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Williams-Sonoma this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -3.41%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Williams-Sonoma currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With Favorable Combination
Here are some stocks from the broader Retail-Wholesale sector that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat for the to-be-reported quarter:
Bath & Body Works, Inc. (BBWI - Free Report) has an Earnings ESP of +62.21% and a Zacks Rank #3.
BBWI’s earnings surpassed the consensus mark in all of the trailing four quarters, with the average surprise being 26.1%.
Dollar General Corporation (DG - Free Report) has an Earnings ESP of +2.35% and a Zacks Rank #3.
DG’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 2.2%, on average.
Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of +6.57% and a Zacks Rank #3.
DLTR’s earnings topped the consensus mark in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 8.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.