UPDATE: Citigroup Reiterates on Williams-Sonoma as Solid Execution Yields Top-Line and Bottom-Line Beats

In a report published Thursday, Citigroup analyst Kate McShane reiterated a Buy rating on

, but lowered the price target from $68.00 to $67.00. In the report, Citigroup noted, “WSM delivered another impressive quarterly beat on +11.3% y/y growth in revenues and +40bps y/y in op margins. While intentional price competitiveness drove much of the -40bps y/y decline in GM%, the company was able to leverage SG&A by 80bps. We note retail channel OM% expanded for the first time this year to 9.1% (+30 bps y/y) while DTC channel OM% increased +40bps y/y to 22.9% We continue to recommend WSM as a buy and keep it on the U.S. Focus List based on the top line momentum, better than expected margin expansion and raised guidance.” Williams-Sonoma closed on Wednesday at $55.51.