Williams-Sonoma, Inc (NYSE: WSM) released its Q2
results after market close on Wednesday. Earnings per share came in in-line Wall Street consensus expectations, however, the
company missed on sales estimates.
Williams-Sonoma reported EPS of $0.58 and revenues of $1.159 billion. Analyst consensus had an EPS estimate of $0.58 and
revenues of $1.17 billion. The company reported Q2 total comparable same store sales up 0.6 percent.
Williams-Sonoma saw Q3 EPS at $0.75-$0.80 vs. estimates of $0.81 and Q3 revenues of $1.235-$1.285 billion vs. estimates of $1.28
billion. Additionally, the company saw FY16 EPS of $3.35-3.55 vs. estimates of $3.57. Additionally, management forecasted FY16
sales between $5.075-$5.225 billion vs. estimates of $5.22 billion.
"Despite the progress that we have made against our strategic initiatives, the overall retail environment has softened and we
are being impacted by a more cautious consumer. As a result, we have revised our outlook for the remainder of the year to reflect
this change in t rend. We remain focused on what we can cont rol to drive growth and continuous improvements in our operations,
including strengthening and growing our brands, further differentiating our product offering, innovating our marketing and digital
st rategies and enhancing the retail experience," stated Laura Alber, President and CEO.
Sonoma's Weakness Confirms Overall Home Furnishing Industry Slump
According to Barclay's Matthew McClintock, "Census data indicate the Furniture & Home Furnishings industry was up 2.7% y/y for
May-July, marking the worst quarterly performance since 4Q13 and a substantial sequential deceleration from 6.6% in 1Q16. We
believe there is an industry shift to the value channel."
The analyst was worried the low growth would effect Williams-Sonoma negatively and had an Underweight rating on the stock partly
due to the trend.
Diverse Brand Performance
The company reported the following for brand revenue growth:
- Pottery Barn +6.4%
- Williams-Sonoma -0.3%
- West Elm +15.7%
- Pottery Barn Kids +3.3%
- PBteen +3.9%
- Total +6.3%
Latest Ratings for WSM
Date |
Firm |
Action |
From |
To |
Aug 2016 |
UBS |
Maintains |
|
Neutral |
Jun 2016 |
BTIG Research |
Initiates Coverage on |
|
Sell |
May 2016 |
Topeka Capital |
Initiates Coverage on |
|
Buy |
View More Analyst Ratings for
WSM
View the Latest Analyst Ratings
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