Kitchenware and home goods retailer Williams-Sonoma (NYSE: WSM) will be reporting results tomorrow morning. Here’s what to look for.
Williams-Sonoma beat analysts’ revenue expectations by 4.5% last quarter, reporting revenues of $2.46 billion, up 8% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS 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 be flat year on year at $1.66 billion, improving from the 5.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.76 per share.
Analysts covering the company have generally 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 three 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 delivered year-on-year revenue growth of 5.5%, missing analysts’ expectations by 0.8%, and Sleep Number reported a revenue decline of 16.4%, falling short of estimates by 1.2%. Arhaus traded down 4.9% following the results while Sleep Number was up 3.3%.
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 16.7% on average over the last month. Williams-Sonoma is up 22% during the same time and is heading into earnings with an average analyst price target of $177.28 (compared to the current share price of $173.11).
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