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In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 1.7% and increased by 1.5% year over year. Revenues of this multi-channel specialty retailer of premium-quality home products lagged the consensus mark by 12% and declined by 1.9%.
Williams-Sonoma reported better-than-expected earnings in three of the last four quarters, the average being 6.6%.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has decreased to $2.41 from $2.43 over the past 30 days. That said, the estimated figure indicates a fall of 31.1% from $3.50 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $1.79 billion, suggesting a 5.5% decline from the year-ago figure of $1.89 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 net sales in first-quarter fiscal 2023. The accelerating trend in online sales is expected to have aided its top line in the yet-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 to-be-reported quarterly performance.
Slowing discretionary demand conditions, a slowing macroeconomic (particularly housing) outlook and excess inventory in the industry are expected to weigh on WSM’s bottom-line results. Softening category demand, owing to inflationary pressure and macro and geopolitical concerns, has 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 negative 1.2%. The same had fell by 3.1% a year ago. In fourth-quarter fiscal 2022, comps improved 4% year over year.
The Zacks Consensus Estimate for Pottery Barn’s comps decline is pegged at 1.3%. The same improved 14.6% a year ago. In fourth-quarter fiscal 2022, comps grew 5.8% year over year.
The Zacks Consensus Estimate for West Elm’s comps decine is pegged at 5.8%. The metric grew 12.8% a year ago but declined 10.7% in the last reported quarter.
The Zacks Consensus Estimate for the namesake brand’s comps is pegged at down 3%. The metric came in at 9.5% growth a year ago and negative 2.5% in the previously-reported quarter.
What the Zacks Model Says
Our proven model predicts 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. That is the case here, as elaborated below.
Earnings ESP: Earnings ESP is 0.72%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Jack in the Box Inc. (JACK - Free Report) reported solid second-quarter fiscal 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
Darin Harris, Jack in the Box’s chief executive officer, stated, "The momentum in our business continued throughout the second quarter, reflected in outstanding sales, positive net unit growth, improved margin performance and the signing of a development agreement for expansion into Mexico. Over the last year we have been focused on the execution of our strategy and the results are beginning to show.”
The Wendy's Company (WEN - Free Report) reported impressive first-quarter fiscal 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
President and chief executive officer Todd Penegor stated, "We delivered our sixth consecutive quarter of double-digit global same-restaurant sales growth on a two-year basis driven in part by our compelling marketing programs, continued operational improvements and the significant acceleration of our digital business. Our successful start to the year and clear alignment behind our strategic pillars give us confidence that we will deliver meaningful global growth for the remainder of 2023 and beyond."
The Cheesecake Factory Incorporated (CAKE - Free Report) reported first-quarter fiscal 2023 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the mark. The top and bottom lines rose year over year. Incremental pricing and cost-saving efforts resulted in the uptick despite continued inflation, volatility and a dynamic operating environment.
David Overton, chairman and CEO of Cheesecake Factory, stated, “We were pleased with our first quarter performance highlighted by comparable sales growth across our portfolio of concepts. We delivered a solid start to the year with revenue finishing in-line with our expectations and adjusted net income margin at the high end of our guidance range.”
Image: Bigstock
Williams-Sonoma (WSM) to Post Q1 Earnings: What's in Store?
Williams-Sonoma, Inc. (WSM - Free Report) is scheduled to release first-quarter fiscal 2023 results on May 23, before the market opens.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 1.7% and increased by 1.5% year over year. Revenues of this multi-channel specialty retailer of premium-quality home products lagged the consensus mark by 12% and declined by 1.9%.
Williams-Sonoma reported better-than-expected earnings in three of the last four quarters, the average being 6.6%.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has decreased to $2.41 from $2.43 over the past 30 days. That said, the estimated figure indicates a fall of 31.1% from $3.50 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $1.79 billion, suggesting a 5.5% decline from the year-ago figure of $1.89 billion.
Williams-Sonoma, Inc. Price and EPS Surprise
Williams-Sonoma, Inc. price-eps-surprise | Williams-Sonoma, 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 net sales in first-quarter fiscal 2023. The accelerating trend in online sales is expected to have aided its top line in the yet-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 to-be-reported quarterly performance.
Slowing discretionary demand conditions, a slowing macroeconomic (particularly housing) outlook and excess inventory in the industry are expected to weigh on WSM’s bottom-line results. Softening category demand, owing to inflationary pressure and macro and geopolitical concerns, has 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 negative 1.2%. The same had fell by 3.1% a year ago. In fourth-quarter fiscal 2022, comps improved 4% year over year.
The Zacks Consensus Estimate for Pottery Barn’s comps decline is pegged at 1.3%. The same improved 14.6% a year ago. In fourth-quarter fiscal 2022, comps grew 5.8% year over year.
The Zacks Consensus Estimate for West Elm’s comps decine is pegged at 5.8%. The metric grew 12.8% a year ago but declined 10.7% in the last reported quarter.
The Zacks Consensus Estimate for the namesake brand’s comps is pegged at down 3%. The metric came in at 9.5% growth a year ago and negative 2.5% in the previously-reported quarter.
What the Zacks Model Says
Our proven model predicts 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. That is the case here, as elaborated below.
Earnings ESP: Earnings ESP is 0.72%. 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.
Recent Retail-Wholesale Releases
Jack in the Box Inc. (JACK - Free Report) reported solid second-quarter fiscal 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
Darin Harris, Jack in the Box’s chief executive officer, stated, "The momentum in our business continued throughout the second quarter, reflected in outstanding sales, positive net unit growth, improved margin performance and the signing of a development agreement for expansion into Mexico. Over the last year we have been focused on the execution of our strategy and the results are beginning to show.”
The Wendy's Company (WEN - Free Report) reported impressive first-quarter fiscal 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
President and chief executive officer Todd Penegor stated, "We delivered our sixth consecutive quarter of double-digit global same-restaurant sales growth on a two-year basis driven in part by our compelling marketing programs, continued operational improvements and the significant acceleration of our digital business. Our successful start to the year and clear alignment behind our strategic pillars give us confidence that we will deliver meaningful global growth for the remainder of 2023 and beyond."
The Cheesecake Factory Incorporated (CAKE - Free Report) reported first-quarter fiscal 2023 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the mark. The top and bottom lines rose year over year. Incremental pricing and cost-saving efforts resulted in the uptick despite continued inflation, volatility and a dynamic operating environment.
David Overton, chairman and CEO of Cheesecake Factory, stated, “We were pleased with our first quarter performance highlighted by comparable sales growth across our portfolio of concepts. We delivered a solid start to the year with revenue finishing in-line with our expectations and adjusted net income margin at the high end of our guidance range.”
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.