Earnings Preview: Williams-Sonoma

Williams-Sonoma WSM is gearing up to announce its quarterly earnings on Thursday, 2025-05-22. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Williams-Sonoma will report an earnings per share (EPS) of $1.74.

The market awaits Williams-Sonoma's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings Track Record

During the last quarter, the company reported an EPS beat by $0.35, leading to a 0.77% drop in the share price on the subsequent day.

Here's a look at Williams-Sonoma's past performance and the resulting price change:

Performance of Williams-Sonoma Shares

Shares of Williams-Sonoma were trading at $172.52 as of May 20. Over the last 52-week period, shares are up 19.88%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Insights on Williams-Sonoma

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Williams-Sonoma.

Analysts have given Williams-Sonoma a total of 15 ratings, with the consensus rating being Neutral. The average one-year price target is $185.2, indicating a potential 7.35% upside.

Comparing Ratings Among Industry Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Arhaus and Beyond, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Arhaus, with an average 1-year price target of $10.5, suggesting a potential 93.91% downside.
• Analysts currently favor an Neutral trajectory for Beyond, with an average 1-year price target of $8.3, suggesting a potential 95.19% downside.

Analysis Summary for Peers

Within the peer analysis summary, vital metrics for Arhaus and Beyond are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Williams-Sonoma ranks highest in Revenue Growth among its peers. It also leads in Gross Profit and Return on Equity.

Unveiling the Story Behind Williams-Sonoma

With a retail and direct-to-consumer presence, Williams-Sonoma is a player in the $300 billion domestic home category and $450 billion international home market, focused on expanding its exposure in the B2B ($80 billion total addressable market), marketplace, and franchise areas. Namesake Williams-Sonoma (154 stores) offers high-end cooking essentials, while Pottery Barn (184) provides casual home accessories. West Elm (121) is an emerging concept for young professionals, and Rejuvenation (11) offers lighting and house parts. Brand extensions include Pottery Barn Kids and Pottery Barn Teen (46) as well as Mark & Graham and GreenRow. Williams-Sonoma also has a business-to-business team that supports projects that range from residential to large-scale commercial.

Williams-Sonoma's Financial Performance

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Williams-Sonoma's revenue growth over a period of 3 months has been noteworthy. As of 31 January, 2025, the company achieved a revenue growth rate of approximately 8.04%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: Williams-Sonoma's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 15.63% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Williams-Sonoma's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 19.01% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Williams-Sonoma's ROA stands out, surpassing industry averages. With an impressive ROA of 7.5%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Williams-Sonoma's debt-to-equity ratio is below the industry average. With a ratio of 0.63, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Williams-Sonoma visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.