Back to top

Williams-Sonoma (WSM) Rallies on Earnings Beat, Major Growth in All Brands

Read MoreHide Full Article

Williams-Sonoma Inc. (WSM - Free Report) just released its fourth quarter fiscal 2017 financial results, posting earnings of $1.68 per share and revenues of $1.68 billion. WSM is up about 6% to $57 per share shortly after the report was released.

Currently, WSM is a #3 (Hold) on the Zacks Rank, and estimates have increased by a penny to $3.55 a share for the current year. Estimates are on the rise for the next fiscal year as well.


Beat earnings estimates. The home retail conglomerate reported non-GAAP diluted earnings of $1.68 per share, topping the Zacks Consensus Estimate of $1.63 per share, representing an 8.4% increase from the prior-year period.

Beat revenue estimates. The company saw sales of $1.68 billion, just edging past our consensus estimate of $1.65 billion and growing 6.5% year-over-year.

Comparable brand revenue growth was 5.4%, and the company saw positive growth in this category across all of its brands including Pottery Barn at 4.1% and Williams Sonoma at 4.3%. West Elm, WSM’s mid-century modern line, was the stand out at 12.3% growth.

Its e-commerce business surged 8.45 to $877 million, reflecting 52.2% of total company net revenues.

“In 2018, we will continue to strategically invest in digital advertising, technology and our customer experience, while driving efficiencies and cost savings throughout our business. Looking ahead, we are confident in our strategies and proven t rack record to further extend our leadership in the home furnishings and housewares industry,” said president and CEO Laura Alber.

Here’s a graph that looks at Williams-Sonoma’s price, consensus, and EPS surprise:

Williams-Sonoma, Inc. Price, Consensus and EPS Surprise

Williams-Sonoma, Inc. Price, Consensus and EPS Surprise | Williams-Sonoma, Inc. Quote

Williams-Sonoma is a specialty retailer of high-quality products for the home. These products, representing eight distinct merchandise strategies - Williams Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, PBteen, Williams Sonoma Home, Rejuvenation, and Mark and Graham - are marketed through e-commerce websites, direct mail catalogs and retail stores. Williams-Sonoma’s portfolio has been fueled by three areas of strategic investment: brand experimentation and innovation, for a best-in-class approach to multi-channel retail experiences; operational excellence across the enterprise, from quality product and sourcing, to efficient manufacturing and supply chain; and culture and corporate social responsibility, from commitments to foster women in leadership and embrace diversity, to a healthy impact on community and environment.

Breaking News: Cryptocurrencies Now Bigger than Visa

The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.

Zacks’ has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market. Click here to access these stocks. >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Williams-Sonoma, Inc. (WSM) - free report >>

More from Zacks Stocks in the News

You May Like