Deutsche Bank Sees Promos and Supply Disruptions Impact 2Q Results for Williams-Sonoma

In a report published Thursday, Deutsche Bank analyst Mike Baker reiterated a Hold rating and $62.00 price target on

. In the report, Deutsche Bank noted, “WSM reported brand comps of 5.7%, approx in line with Thomson consensus of 5.8%, but a slowdown from the 10% range over the past two qtrs and the slowest comp in 5 qtrs. We believe the promotional environment was worse than expected heading into the qtr, and in responding to this environment to take share, the average ticket – especially on high-priced outdoor furniture – was negatively impacted. WSM also had supply disruptions from Vietnam, which had a significant impact on the PB Teen brand, which comped down 1% vs +12% last quarter. The stock is indicated down in the $66.50 range afterhours and we maintain our Hold rating as we believe valuation is neutral.” Williams-Sonoma closed on Wednesday at $74.89.