- Williams-Sonoma reported better-than-expected net revenue of $1.73 billion for the first quarter, a 4.2% increase year-over-year, surpassing the $1.67 billion estimate.
- Overall comparable sales grew by 3.4%, a notable rebound from last year’s decline of 4.9% and beating the estimated growth of 0.44%.
- Pottery Barn comparable sales rose by 2%, improving significantly from a 10.8% decline last year and outperforming the expected decline of 0.3%.
- The Williams-Sonoma segment saw an impressive 7.3% increase in comparable sales, compared to a 0.9% rise last year, far exceeding the 1.73% estimate.
- West Elm showed modest growth in comparable sales at 0.2%, compared to a 4.1% decline the previous year, missing the estimated growth of 0.67%.
- Pottery Barn Kids and Teen reported a 3.8% increase in comparable sales, up from a 2.8% rise last year, surpassing the 1.33% estimated growth.
- The gross margin decreased to 44.3% from 45.4% year-over-year.
- Total stores decreased slightly to 508, a 0.8% reduction quarter-over-quarter, falling short of the estimate of 512.1 stores.
- The number of Williams-Sonoma stores reduced to 154, showing a 1.3% year-over-year decline, aligning closely with the estimate of 153.43 stores.
- West Elm stores decreased by 1.7% quarter-over-quarter to 119 stores, below the anticipated 121.8 stores.
- Pottery Barn Kids stores fell by 2.2% quarter-over-quarter to 44, slightly missing the estimate of 45 stores.
- Rejuvenation stores remained unchanged with 11 locations, meeting the estimate.
- The operating margin decreased to 16.8% from 19.5% in the previous year.
- For fiscal 2025, Williams-Sonoma expects annual net revenue within -1.5% to +1.5%, considering the impact of the 53rd week in fiscal 2024.
- The company forecasts comparable sales to be flat to +3.0%, and anticipates an operating margin between 17.4% to 17.8%, accounting for a 20 basis point impact from the 53rd week in fiscal 2024.
- Market analysts suggest a moderate outlook with 7 buy recommendations, 15 holds, and 3 sells.
Williams Sonoma on Smartkarma
Williams Sonoma‘s analyst coverage on Smartkarma reveals a mix of bullish sentiments from top independent analysts. Baptista Research‘s report highlights Williams-Sonoma’s strategic decisions, including supply chain efficiencies and product innovation, leading to robust financial outcomes at the end of fiscal year 2024. The company’s impressive fourth-quarter performance, with a 3.1% increase in comparable sales and a strong operating margin of 21.5%, signals a positive outlook for its stock recovery.
Travis Lundy‘s insights on the Quiddity Index shed light on the upcoming constituent changes for the S&P 500/600 index rebal event in March 2025, offering a broader perspective on market trends. With Baptista Research focusing on the company’s proactive approach to global sourcing and tariff management as major drivers for future growth, investors may find Williams Sonoma a compelling investment opportunity based on the analysts’ research.
A look at Williams Sonoma Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Williams-Sonoma, Inc., a leading retailer of cooking and serving equipment, home furnishings, and home accessories, is positioned for a promising long-term outlook based on a comprehensive analysis using Smartkarma Smart Scores. With a solid Growth score of 4, the company is expected to show strong growth potential in the future. Additionally, its Resilience score of 3 indicates a sturdy foundation to withstand market fluctuations and challenges. While the Value score is at 2, suggesting there may be room for improvement in terms of valuation, the Dividend score of 3 signals a moderate level of dividend performance. However, the Momentum score of 2 indicates some sluggishness in short-term performance that may need attention to drive momentum.
In summary, Williams-Sonoma, Inc. has a diversified product offering under well-known brands like Williams-Sonoma, Pottery Barn, and West Elm. The company’s favorable Growth and Resilience scores bode well for its long-term performance, although there is potential for enhancing value and momentum. Investors may want to keep an eye on the company’s strategic initiatives to capitalize on its strengths and improve in areas where there is room for growth.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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