Back to top

Image: Bigstock

What's in Store for Williams-Sonoma's (WSM) Q4 Earnings?

Read MoreHide Full Article

Williams-Sonoma, Inc. (WSM - Free Report) is scheduled to report fourth-quarter fiscal 2019 results on Mar 18, after the closing bell.

In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 2% and 2.1%, respectively. On a year-over-year basis, earnings and revenues of this multi-channel specialty retailer of premium quality home products grew 7.4% and 6.3%, respectively, mainly attributable to a 5.5% increase in comps.

Markedly, Williams-Sonoma reported better-than-expected earnings in the last four quarters, with the average surprise being 8.1%.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been unchanged at $2.05 over the past 30 days. The estimated figure indicates a decrease of 2.4% from $2.10 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $1.81 billion, suggesting a 1.3% decline from the year-ago reported figure of $$1.84 billion.

Williams-Sonoma, Inc. Price and EPS Surprise

Williams-Sonoma, Inc. Price and EPS Surprise

Williams-Sonoma, Inc. price-eps-surprise | Williams-Sonoma, Inc. Quote

Factors to Consider

Williams-Sonoma’s sales and earnings are expected to be have declined in the fiscal fourth quarter. Soft comps at the Williams Sonoma brand have been a pressing concern for the company over the last few quarters. The company’s Williams Sonoma brand has been witnessing flat or negative comps in the trailing four quarters, partially due to tough comparisons against higher level of promotions.

Incremental impact from China tariffs, higher shipping costs primarily due to a higher mix of furniture sales, increased digital advertising investments and rise in labor costs are likely to have weighed on its bottom line.

While relentless competition, tariffs and tough comparisons are expected to have been pressing concerns, the company’s cross-brand initiatives and momentum of the West Elm brand are likely to have driven consolidated comps. Again, 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 expected to have provided some support to the top line.

What the Zacks Model Unveils

Our proven model does not conclusively predict 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Williams-Sonoma, which shares space with RH (RH - Free Report) in the Zacks Retail - Home Furnishings industry, currently carries a Zacks Rank #2 and has an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Worth a Look

Here are some stocks in the Zacks Retail-Wholesale sector, which have the right combination of elements to beat estimates in their respective quarters to be reported.

The Children's Place, Inc. (PLCE - Free Report) has an Earnings ESP of +1.16% and a Zacks Rank #3.

Five Below, Inc. (FIVE - Free Report) has an Earnings ESP of +0.32% and a Zacks Rank #3.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.

See their latest picks free >>


In-Depth Zacks Research for the Tickers Above


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


RH (RH) - free report >>

Five Below, Inc. (FIVE) - free report >>

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

The Children's Place, Inc. (PLCE) - free report >>