William-Sonoma (WSM) stock rose 18.7% in the first half of 2018 and has risen 18.9% year-to-date. The company beat analysts’ EPS and revenue estimates in the first quarter and raised its revenue and EPS guidance for 2018, boosting investors’ confidence and its stock price.
In the first quarter, William-Sonoma posted revenue of $1.20 billion, beating analysts’ estimate of $1.16 billion. Its revenue was boosted by its SSSG (same-store sales growth) of 5.5%, which also beat analysts’ estimate (4.0%). The company’s digital leadership, product innovation, retail transformation, and operational excellence initiatives boosted its sales.
Its adjusted EPS rose 31.4% YoY (year-over-year) to $0.67 in the first quarter, beating analysts’ estimate of $0.58. Its EPS growth was driven by revenue growth, net margin expansion, and share repurchases.
In 2018, William-Sonoma expects revenue of $5.50 billion–$5.66 billion and SSSG of 2%–5%. It expects its EPS to grow 13.4%–16.1% YoY to $4.15 to $4.25 from $3.66.
Of the 26 analysts following William-Sonoma, 3.8% recommend “buy,” 80.8% recommend “hold,” and 15.4% recommend “sell.” Their average target price of $55.10 implies a 10.3% fall over the next 12 months. Next, we’ll look at Home Depot’s stock performance in the first half of 2018.