Williams-Sonoma Falls After Q2 Earnings

Williams-Sonoma, Inc. WSM shares are down after posting second-quarter results.

Williams-Sonoma reported quarterly earnings of 87 cents per share, which beat the analyst consensus estimate by 3 cents. The company reported quarterly sales of $1.37 billion, which beat the analyst consensus estimate of $1.32 billion. The company also raised guidance above analyst estimates.

"We continue to deliver very strong results. In the second quarter, comp revenue growth accelerated to 6.5%, while operating margin expanded and EPS grew double digits," said Laura Alber, President and CEO. "The growth strategy that we outlined at the beginning of the year is driving results and giving us the competitive advantage to continue to outperform. West Elm, our biggest growth opportunity, continues to accelerate, the Pottery Barn brands have returned to strength, and our cross-brand initiatives such as The Key and Business-to-Business are becoming more impactful levers of growth.."

Highlights

• Net revenue grew 7.5%
• Comparable brand revenue growth accelerates to 6.5%
• GAAP operating margin of 6.3%
• Non-GAAP diluted EPS increased 13% year-over-year

Williams-Sonoma shares traded down 2.2% to $67.26 in Wednesday's after-hours session.