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If You Invested $1000 in Williams-Sonoma a Decade Ago, This is How Much It'd Be Worth Now

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also 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.

(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.

According to our calculations, a $1000 investment made in December 2013 would be worth $3,471.89, or a 247.19% gain, as of December 20, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.

The S&P 500 rose 163.50% and the price of gold increased 64.72% over the same time frame in comparison.

Analysts are anticipating more upside for WSM.

Shares of Williams-Sonoma have outperformed its industry in the past three months. It’s third-quarter fiscal 2023 earnings and net sales declined year over year. The quarterly results reflect low contributions from the company’s reportable brands driven by ongoing softness witnessed in consumer discretionary spending, especially on furniture. Also, elevated levels of promotional activity and current macroeconomic uncertainties were added woes. That said, margins grew from the previous year on the back of a solid operating model, which partially offset the above-mentioned headwinds through its full-price selling, supply-chain efficiencies and top-tier customer service. Impressively, the company now expects its operating margin to be 16-16.5% for fiscal 2023, up from 15-16% expected earlier.

Shares have gained 12.93% over the past four weeks and there have been 9 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

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