Williams-Sonoma (WSM) To Report Earnings Tomorrow: Here Is What To Expect

Kitchenware and home goods retailer Williams-Sonoma (NYSE:WSM) will be announcing earnings results tomorrow before the bell. Here's what investors should know.

Williams-Sonoma beat analysts' revenue expectations by 2.4% last quarter, reporting revenues of $2.28 billion, down 7.1% year on year. It was a very strong quarter for the company, with a decent beat of analysts' revenue and earnings estimates.

Is Williams-Sonoma a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Williams-Sonoma's revenue to decline 6.1% year on year to $1.65 billion, improving from the 7.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.72 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Williams-Sonoma has missed Wall Street's revenue estimates four times over the last two years.

Looking at Williams-Sonoma's peers in the home furnishing and improvement retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Arhaus's revenues decreased 3.1% year on year, beating analysts' expectations by 11.7%, and Sleep Number reported a revenue decline of 10.7%, in line with consensus estimates. Arhaus traded up 23.8% following the results while Sleep Number was also up 4.8%.

Read our full analysis of Arhaus's results here and Sleep Number's results here.

There has been positive sentiment among investors in the home furnishing and improvement retail segment, with share prices up 8.1% on average over the last month. Williams-Sonoma is up 13.4% during the same time and is heading into earnings with an average analyst price target of $290.4 (compared to the current share price of $317.81).

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