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Here's How Much You'd Have If You Invested $1000 in Williams-Sonoma a Decade Ago
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Williams-Sonoma (WSM - Free Report) ten years ago? It may not have been easy to hold on to WSM for all that time, but if you did, how much would your investment be worth today?
Williams-Sonoma's Business In-Depth
With that in mind, let's take a look at Williams-Sonoma's main business drivers.
Headquartered in San Francisco, CA, Williams-Sonoma, Inc. is a multi-channel specialty retailer of premium quality home products. Incorporated in 1973, the company has five brands and each of the brands are operating segments.
Pottery Barn (accounting for 41% of fiscal 2022 total revenues) is the largest brand of the company and offers premium quality furniture, lighting, tabletop, outdoor and decorative accessories.
West Elm (26.3%) produces personalized products designed by the company’s team of artists and designers.
Williams-Sonoma (14.8%) offers cookware, tools, cutlery, electrics, tabletop and bar, outdoor, furniture and cookbooks.
Pottery Barn Kids and Teen (13.1%) deals with 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.
Other segment (4.8%) primarily consists of international franchise operations, Rejuvenation and Mark and Graham. Rejuvenation offers premium quality products which are inspired from history and are manufactured in facilities in Portland, OR. Mark and Graham is known for personalized gift items. The brand manufactures women’s and men’s accessories, home décor as well as seasonal items.
Cash and cash equivalents were $514.4 million as of Jul 30, 2023 compared with $124.9 million reported a year ago and $367.3 million at the end of fiscal 2022. Net cash from operating activities totaled $715 million in the first six months of fiscal 2023 compared with $383.6 million a year ago. At the fiscal second quarter-end, the company stated that it had no debt, thereby maintaining its strong financial position. Williams-Sonoma rewarded shareholders in dividends (worth $116.6 million) and share repurchases (worth $310 million) in first-half 2023.
(Note: Zacks identifies fiscal years by the month in which the fiscal year ends, while WSM identifies their fiscal year by the calendar year in which it begins; so comparable figures for any given fiscal year, as published by WSM, will refer to this same fiscal year as being the year before the same year, as identified by Zacks).
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Williams-Sonoma, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in October 2013 would be worth $3,016.10, or a gain of 201.61%, as of October 11, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 157.49% and gold's return of 36.81% over the same time frame.
Analysts are anticipating more upside for WSM.
Shares of Williams-Sonoma have outperformed its industry in this year so far. The company is benefiting from its e-commerce business, B2B initiative and expansion plans. Considering the company’s B2B operates in two formats, trade and contract, it witnessed 23% sequential growth in its contract business during second-quarter fiscal 2023. Furthermore, its newly relocated store on Post Road in Westport, Connecticut, is achieving significant success post its launch. Also, the focus on marketing and digital innovation bode well. Although increasing promotional environment and softening industry metrics accompanied with supply-chain woes, material and labor shortages are primary headwinds, earnings estimates for fiscal 2024 have increased in the past 60 days. This depicts analysts’ optimism over the stock’s growth potential.
Over the past four weeks, shares have rallied 14.52%, and there have been 10 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Williams-Sonoma a Decade Ago
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Williams-Sonoma (WSM - Free Report) ten years ago? It may not have been easy to hold on to WSM for all that time, but if you did, how much would your investment be worth today?
Williams-Sonoma's Business In-Depth
With that in mind, let's take a look at Williams-Sonoma's main business drivers.
Headquartered in San Francisco, CA, Williams-Sonoma, Inc. is a multi-channel specialty retailer of premium quality home products. Incorporated in 1973, the company has five brands and each of the brands are operating segments.
Pottery Barn (accounting for 41% of fiscal 2022 total revenues) is the largest brand of the company and offers premium quality furniture, lighting, tabletop, outdoor and decorative accessories.
West Elm (26.3%) produces personalized products designed by the company’s team of artists and designers.
Williams-Sonoma (14.8%) offers cookware, tools, cutlery, electrics, tabletop and bar, outdoor, furniture and cookbooks.
Pottery Barn Kids and Teen (13.1%) deals with 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.
Other segment (4.8%) primarily consists of international franchise operations, Rejuvenation and Mark and Graham. Rejuvenation offers premium quality products which are inspired from history and are manufactured in facilities in Portland, OR. Mark and Graham is known for personalized gift items. The brand manufactures women’s and men’s accessories, home décor as well as seasonal items.
Cash and cash equivalents were $514.4 million as of Jul 30, 2023 compared with $124.9 million reported a year ago and $367.3 million at the end of fiscal 2022. Net cash from operating activities totaled $715 million in the first six months of fiscal 2023 compared with $383.6 million a year ago. At the fiscal second quarter-end, the company stated that it had no debt, thereby maintaining its strong financial position. Williams-Sonoma rewarded shareholders in dividends (worth $116.6 million) and share repurchases (worth $310 million) in first-half 2023.
(Note: Zacks identifies fiscal years by the month in which the fiscal year ends, while WSM identifies their fiscal year by the calendar year in which it begins; so comparable figures for any given fiscal year, as published by WSM, will refer to this same fiscal year as being the year before the same year, as identified by Zacks).
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Williams-Sonoma, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in October 2013 would be worth $3,016.10, or a gain of 201.61%, as of October 11, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 157.49% and gold's return of 36.81% over the same time frame.
Analysts are anticipating more upside for WSM.
Shares of Williams-Sonoma have outperformed its industry in this year so far. The company is benefiting from its e-commerce business, B2B initiative and expansion plans. Considering the company’s B2B operates in two formats, trade and contract, it witnessed 23% sequential growth in its contract business during second-quarter fiscal 2023. Furthermore, its newly relocated store on Post Road in Westport, Connecticut, is achieving significant success post its launch. Also, the focus on marketing and digital innovation bode well. Although increasing promotional environment and softening industry metrics accompanied with supply-chain woes, material and labor shortages are primary headwinds, earnings estimates for fiscal 2024 have increased in the past 60 days. This depicts analysts’ optimism over the stock’s growth potential.
Over the past four weeks, shares have rallied 14.52%, and there have been 10 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.