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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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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 is are operating segments.

Pottery Barn (accounting for 41.4% of fiscal 2023 total revenues) is the largest brand of the company and offers premium quality furniture, lighting, tabletop, outdoor and decorative accessories.

West Elm (23.9%) produces personalized products designed by the company’s team of artists and designers.

Williams-Sonoma (16.2%) offers cookware, tools, cutlery, electrics, tabletop and bar, outdoor, furniture and cookbooks.

Pottery Barn Kids and Teen (13.7%) 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 that are inspired by history and manufactured in facilities in Portland, OR. Mark and Graham are 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

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Williams-Sonoma ten years ago, you're likely feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in June 2014 would be worth $4,596.87, or a 359.69% gain, as of June 20, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 180.02% and the price of gold went up 70.33% over the same time frame.

Looking ahead, analysts are expecting more upside for WSM.

Williams-Sonoma reported decent results in first-quarter fiscal 2024, with earnings and net revenues beating the Zacks Consensus Estimate by 46.4% and 0.3%, respectively. On a year-over-year basis, the top line declined, but the bottom line increased. The company is benefiting from its e-commerce business, B2B initiative and expansion plans. In the quarter, its margins rose owing to a solid operating model, including full-price selling and supply-chain efficiencies. The B2B segment grew 10% year-over-year, driving record-breaking demand. The company witnessed continued growth for its existing large project customers. Although the ongoing softness in the housing market and increase in occupancy costs are concerns, it is optimistic about the B2B segment, which is less affected by housing market fluctuations.

Shares have gained 14.26% over the past four weeks and there have been 5 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

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