Williams-Sonoma Earnings: What To Look For From WSM

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

Williams-Sonoma met analysts’ revenue expectations last quarter, reporting revenues of $1.66 billion, down 5.4% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ 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 2.8% year on year to $1.81 billion, improving from the 12.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.61 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 Q2 results, giving us a hint as to what we can expect. Sleep Number’s revenues decreased 11% year on year, missing analysts’ expectations by 1.9%, and Arhaus reported flat revenue, falling short of estimates by 1.4%. Sleep Number traded up 19.4% following the results while Arhaus was down 8.6%.

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

Investors in the home furnishing and improvement retail segment have had steady hands going into earnings, with share prices flat over the last month. Williams-Sonoma is down 11.8% during the same time and is heading into earnings with an average analyst price target of $148 (compared to the current share price of $137.6).

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