Core Viewpoint - Williams-Sonoma, Inc. reported strong first-quarter results, exceeding revenue and earnings expectations, but analysts have mixed views on future performance due to tariff-related cost pressures and margin concerns [1][4][5]. Financial Performance - The company reported revenue of $1.73 billion, a 4.2% increase year-over-year, surpassing Wall Street's estimate of $1.67 billion [1]. - GAAP earnings per share (EPS) were $1.85, beating the analyst consensus estimate of $1.77 [1]. - First-quarter comparable sales and operating margins outperformed expectations, but there was a significant headwind in merchandising gross margin of approximately 220 basis points [4]. Future Outlook - Williams-Sonoma maintains its fiscal 2025 guidance, projecting net revenue to range between -1.5% and +1.5%, with comparable sales flat to up 3.0% [2][3]. - Analysts have adjusted their EPS forecasts for 2025 and 2026, with estimates now at $8.33 and $9.10, respectively [5][7]. - The company is viewed positively for long-term growth potential, driven by market share gains and a strong balance sheet, with some analysts suggesting over 50% upside in shares over the next two to three years [6]. Analyst Ratings and Price Forecasts - RBC Capital Markets analyst Steven Shemesh lowered the price forecast to $182 from $189 while maintaining an Outperform rating [3]. - KeyBanc analyst Bradley B. Thomas reiterated an Overweight rating with a price forecast of $181, citing solid first-quarter results despite industry challenges [5]. - Telsey Advisory analyst Cristina Fernández maintained an Outperform rating with a price forecast of $215 [7]. Market Trends - All brands under Williams-Sonoma posted positive year-over-year comparable sales for the first time since Q2 2022, indicating improved multi-year comp trends [9]. - The return to positive furniture comps is noted as significant, despite concerns over gross margin performance [8].

Williams-Sonoma NYSE: WSM is fundamentally a good buy because of its operational quality, fortress balance sheet, cash flow, and ability to sustain value-building capital returns. It is on sale in Q2 2025 because the guidance update provides no catalyst for a rally. The guidance was reaffirmed to include an outlook for growth, solid margin, and the ability to sustain value-building capital returns, including the dividend and share repurchases. Williams-Sonoma TodayWSMWilliams-Sonoma$159.89 -0.50 (-0.31%) 5 ...

Williams-Sonoma CEO Laura Alber told CNBC's Jim Cramer how the company is dealing with the effects of President Donald Trump's tariff hikes."We've been busy," she said. "And we've also been reminded, you know, it's important to have that flexible mindset, but also to have options in sourcing, and particularly with our big programs, to have...different alternatives."The home goods and furniture outfit owns several retail brands alongside its namesake, including Pottery Barn and West Elm. It posted quarterly ...

Williams-Sonoma Inc. (WSM) reported results for first-quarter fiscal 2025 (ended May 4), with earnings and net revenues beating the Zacks Consensus Estimate. The top line increased on a year-over-year basis. The company saw positive comparable sales, supported by stable profitability.Following the earnings release, shares of this multi-channel specialty retailer of premium quality home products moved down 5.8% in today’s pre-market trading session.Going forward, the company remains focused on product develo ...

The Pioneer Of Seeking Alpha's BAD BEAT Investing, Quad 7 Capital is a team of 7 analysts with a wide range of experience sharing investment opportunities for nearly 12 years. They are best known for their February 2020 call to sell everything & go short, & have been on average 95% long 5% short since May 2020. The broader company has expertise in business, policy, economics, mathematics, game theory, & the sciences. They share both long & short trades & invest personally in equities they discuss within the ...

Image source: The Motley Fool.Thursday, May 22, 2025 at 10 a.m. ETCALL PARTICIPANTSPresident & Chief Executive Officer — Laura AlberExecutive Vice President & Chief Financial Officer — Jeff HowieNeed a quote from one of our analysts? Email [email protected]TAKEAWAYSComparable Brand Revenue: Comparable brand revenue increased 3.4% in Q1 FY2025, with all brands achieving positive comps with furniture comps turning positive for the first time since Q4 FY2022. Operating Margin: Operating margin reached 16.8% in ...

Group 1: Earnings Performance - Williams-Sonoma reported quarterly earnings of $1.85 per share, exceeding the Zacks Consensus Estimate of $1.76 per share, but down from $2.04 per share a year ago, representing an earnings surprise of 5.11% [1] - The company posted revenues of $1.73 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 3.73% and up from $1.66 billion year-over-year [2] Group 2: Stock Performance and Outlook - Williams-Sonoma shares have declined approximately 9.3% since the beginning of the year, contrasting with the S&P 500's decline of -0.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.79 on revenues of $1.8 billion, and for the current fiscal year, it is $8.46 on revenues of $7.68 billion [7] Group 3: Industry Context - The Retail - Home Furnishings industry, to which Williams-Sonoma belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Williams-Sonoma (WSM) Q1 2026 Earnings Call May 22, 2025 10:00 AM ET Company Participants Jeremy Brooks - Senior VP, Chief Accounting Officer & Head of IRLaura Alber - President, CEO & DirectorJeff Howie - Executive VP & CFOMax Rakhlenko - Managing DirectorJonathan Matuszewski - Senior Vice PresidentSimeon Gutman - Managing DirectorEmily Ghosh - Equity Research Associate Conference Call Participants Bradley Thomas - Managing Director & Equity Research AnalystPeter Benedict - Senior Research AnalystCristina ...

Financial Data and Key Metrics Changes - In Q1 2025, the company reported net revenues of $1.73 billion, achieving a positive comp of 3.4%, exceeding expectations [38] - Operating margin was 16.8%, with earnings per share (EPS) of $1.85, reflecting an earnings growth of 8.8% [6][42] - Gross margin was 44.3%, which was 360 basis points lower than the previous year when accounting for a $49 million out of period adjustment [39] Business Line Data and Key Metrics Changes - Pottery Barn achieved a positive comp of 2% in Q1, with a five-year comp of 46.7% [17] - The Williams Sonoma brand reported a strong quarter with a positive comp of 7.3% and a five-year comp of 36.9% [23] - The B2B program grew by 8%, marking another record-breaking quarter [9] Market Data and Key Metrics Changes - The home furnishings industry contracted approximately 3% in Q1, while the company gained market share [38] - Retail channel comps were up 6.2%, and e-commerce comps increased by 2.1% [38] Company Strategy and Development Direction - The company is focused on three key priorities: returning to growth, elevating customer service, and driving earnings [7][13] - A strong pipeline of new products and strategic collaborations are emphasized to drive brand growth [8] - The company is actively managing tariff impacts through a six-point plan, including cost concessions from vendors and sourcing goods from lower tariff countries [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and is optimistic about gaining market share in 2025 [13][52] - The company is committed to enhancing customer experiences and operational efficiencies, with a focus on AI integration across digital platforms [10][12] Other Important Information - The company plans to spend between $250 million and $275 million in capital expenditures for fiscal year 2025, prioritizing e-commerce and supply chain efficiency [50] - The quarterly dividend was increased by 16% year-over-year, marking the sixteenth consecutive year of increased payouts [51] Q&A Session Summary Question: Merchandise margins decline - Management clarified that merchandise margins were impacted by higher input costs but offset by supply chain efficiencies and occupancy leverage [58][60] Question: Pricing strategy regarding tariffs - The company emphasized a reduced promotional strategy and a focus on value beyond just price, leveraging direct vendor relationships for better pricing [64][66] Question: Inventory position and its impact on sales - The inventory was strategically increased by 10% to mitigate tariff impacts, with a focus on being in stock to drive sales [86][90] Question: Demand trends throughout the quarter - Management noted strong results across all brands, with furniture achieving positive comps for the first time in nine quarters [77][105] Question: Reducing exposure to China - The company has proactively reduced sourcing from China and is flexible in adjusting sourcing strategies based on the trade environment [81] Question: Tariff mitigation costs - Management explained that tariff mitigation costs were short-term expenses, with expectations of future benefits from proactive inventory management [99][101]

Financial Performance - Q1 comparable brand revenue increased by 3.4%, with net revenues of $1.73 billion compared to $1.66 billion in Q1 2024[1][16] - Operating margin for Q1 was 16.8%, down 230 basis points year-over-year, while diluted EPS was $1.85, reflecting a 7.0% decrease from the previous year[3][4] - Gross margin decreased to 44.3%, a decline of 360 basis points year-over-year, primarily due to lower merchandise margins and a prior year benefit from freight adjustments[4][16] - Net earnings for the thirteen weeks ended May 4, 2025, were $231,263 thousand, a decrease of 11.2% compared to $260,416 thousand for the same period in 2024[22] - Net cash provided by operating activities was $118,949 thousand, a significant decrease of 47.5% from $226,788 thousand in the same period last year[22] Inventory and Merchandise - Merchandise inventories rose by 10.3% year-over-year to $1.3 billion, as the company strategically pulled forward receipts to mitigate potential tariff impacts[4] - Merchandise inventories increased slightly to $1,335,356 thousand as of May 4, 2025, compared to $1,332,429 thousand as of February 2, 2025, reflecting a marginal increase of 0.2%[19] Shareholder Returns - The company maintained a strong liquidity position with $1.0 billion in cash and $119 million in operating cash flow, returning $165 million to shareholders through stock repurchases and dividends[4] - The company has $1.1 billion remaining under its stock repurchase authorization, indicating ongoing commitment to returning value to shareholders[4] - The company repurchased $89,971 thousand of common stock during the period, compared to $43,781 thousand in the previous year, indicating a significant increase in stock buybacks[22] Future Outlook - For fiscal 2025, the company expects annual net revenues to range from -1.5% to +1.5%, with comparable sales growth projected between flat to +3.0%[9] - The company reiterated its long-term guidance of mid-to-high single-digit annual net revenue growth and operating margins in the mid-to-high teens[9] - The company is focused on product innovation and customer service amidst macroeconomic uncertainties, expressing optimism for 2025[4] Asset and Liability Management - Total assets decreased to $5,157,315 thousand as of May 4, 2025, down from $5,301,607 thousand as of February 2, 2025, representing a decline of approximately 2.7%[19] - Cash and cash equivalents decreased to $1,047,181 thousand from $1,212,977 thousand at the beginning of the period, reflecting a decrease of 13.6%[22] - Total current liabilities decreased to $1,721,843 thousand as of May 4, 2025, down from $1,911,974 thousand as of February 2, 2025, a reduction of approximately 9.9%[19] - The company reported a decrease in accounts payable to $553,655 thousand as of May 4, 2025, down from $645,667 thousand as of February 2, 2025, a decline of approximately 14.2%[22] Retail Operations - The number of retail stores decreased to 508 as of May 4, 2025, down from 512 at the beginning of the quarter, indicating a net closure of 4 stores[20] - All brands reported positive comparable sales trends in Q1, with Williams Sonoma brand showing a 7.3% increase[3][16]