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Williams-Sonoma (WSM) Inks Collaboration With Hope for Flowers

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Pottery Barn Kids and Pottery Barn Teen, a brand of Williams-Sonoma, Inc. (WSM - Free Report) , recently entered into a collaboration with the famous clothing brand Hope for Flowers by designer Tracy Reese.

Williams-Sonoma, in collaboration with Tracy Reese, will endorse new bright-colored bedroom collections designed and fabricated by the celebrated designer herself. The designs are influenced by floral colors and patterns, and come with the guarantee of sustainability.

In this regard, Allison Spampanato, senior vice president of product development, Pottery Barn Kids and Pottery Barn Teen, Williams-Sonoma,  said, "It was such a thrill to work with her and bring that inspiration, sophistication and joy into every piece of these collections, and design creative spaces for kids and teens."

The collection emphasises on the implementation of incorporating socially and environmentally responsible practices by both brands. A number of pieces in these collections were not only made from cotton that was responsibly sourced, but were also manufactured in Fair Trade Certified factories

Brands Enhancements and Comps Growth

Pottery Barn Kids and Pottery Barn Teen, accounting for 14.8% of the company’s fiscal 2020 total revenues, is one of the most important portfolio brands of Williams-Sonoma. The brand primarily deals in products used for putting up nurseries, bedrooms and play spaces. It also caters to the teenage population with furniture, bedding, lighting and decorative accents for teen bedrooms, dorm rooms, study spaces and lounges.

Notably, product innovation plays a huge role in Williams-Sonoma's success. Also, to meet the changing preferences of consumers, Williams-Sonoma regularly collaborates with celebrated brands and designers, and also works on widening its social media reach.

Also, Williams-Sonoma is focused on enhancing customer experience through technology innovation and operational improvement. In order to drive brand awareness and increase customer engagement as well as cross-selling opportunities, the company shifted its advertising spend toward social media campaigns and cross-brand initiatives such as The Key, Design Crew Room Planner and The One Registry. Such cross-brand initiatives are expected to be incremental growth drivers for all its brands in fiscal 2021 and beyond.

Despite challenges owing to COVID-19-related disruptions during first-quarter fiscal 2021, Williams-Sonoma reported comparable brand revenue growth of 40.4%. Comps increased 40.4% versus 25.7% growth in the fiscal fourth quarter 2020 and 2.6% in the year-ago period. Comps at West Elm increased an impressive 50.9% compared with 3.3% growth registered in the prior-year quarter. Comps in the Pottery Barn brand grew 41.3% against a decline of 1.1% in the prior-year quarter. Williams Sonoma brand’s comps rose 35.3% compared with 5.4% growth in the year-ago quarter. Pottery Barn Kids and Teen’s comps rose 27.6% versus 8.5% growth in the year-ago quarter.

So far this year Williams-Sonoma’s shares have surged 58.6% in the past six months compared with the Zacks Retail - Home Furnishings industry’s 45.9% rally.

Zacks Investment ResearchImage Source: Zacks Investment Research

Zacks Rank & Other Key Picks

Williams-Sonoma currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the same space include At Home Group Inc. (HOME - Free Report) , The Lovesac Company (LOVE - Free Report) and Fortune Brands Home & Security, Inc. (FBHS - Free Report) in the Zacks Retail - Home Furnishings industry. At Home carries a Zacks Rank #1 (Strong Buy). Lovesac and Fortune Brands have a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank  stocks here.

At Home has a long-term expected earnings per share (three-to-five years) growth rate of 36.8%.

Lovesac has a trailing four-quarter earnings surprise of 118%, on average.

Fortune Brands’ earnings for 2021 are expected to surge 34.8%.

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