With a market cap of $17.5 billion, Williams-Sonoma, Inc. (WSM) operates as an omnichannel specialty retailer of various products for the home. Founded in 1956, the San Francisco, California-based company offers cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks.
The company is expected to report its Q1 earnings on Wednesday, May 28. Ahead of the event, analysts expect WSM to report an EPS of $1.75 per share, down 14.2% from a profit of $2.04 per share reported in the year-ago quarter. It has exceeded analysts' earnings estimates in all of the past four quarters, which is impressive. Its EPS of $3.28 in the recent quarter surpassed the analysts’ expectations by 12.7%, driven by a robust increase in demand for its products and sales.
For the current year, analysts expect WSM to report an EPS of $8.49, down 3.4% from $8.79 in fiscal 2024. However, looking ahead, analysts expect its earnings to surge 6.1% year-over-year to $9.01 per share in fiscal 2026.
Over the past year, WSM shares surged 8.1%, trailing the S&P 500 Index’s ($SPX) 8.4% gains and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 12.4% returns over the same time frame.
WSM stock dropped 3.5% following its Q4 earnings release on Mar. 19. The company reported a 3.1% year-over-year increase in its comparable brand revenue, and its net revenues came in at $2.5 billion. Moreover, its gross margin increased by 130 bps from the previous year’s quarter to 47.3%, indicating robust profitability. Additionally, the company’s operating margin also reached a record high, coming in at 21.5% and increasing by 140 bps from its year-ago value.
Moreover, analysts remain moderately bullish about WSM stock’s future prospects, with a "Moderate Buy" rating overall. Among 19 analysts covering the stock, five recommend a “Strong Buy,” one suggests a “Moderate Buy,” 12 suggest a “Hold,” and one recommends a “Strong Sell.” Its mean price of $179.61 implies a premium of 17.7% from its prevailing price level.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
