uploads/2019/03/WSM-1.jpg

Williams-Sonoma Beats Analysts’ Fourth-Quarter Estimates

By

Updated

Fourth-quarter performance

Williams-Sonoma (WSM) released its fourth-quarter results after the market closed yesterday. During the quarter, the company’s adjusted EPS grew 25% YoY (year-over-year) to $2.10, and its revenue grew 9.3% YoY to $1.84 billion.

Article continues below advertisement

Stock performance

Williams-Sonoma beat analysts’ expectations of revenue of $1.80 billion and adjusted EPS of $1.96. However, its comparable-brand revenue grew just 2.4%, falling short of analysts’ expectation of 2.5%. The company blamed weakness in its gift business for the soft growth.

Despite this miss, the company’s stock rose 2.5% after hours yesterday thanks to its better-than-expected 2019 guidance. This year, William-Sonoma expects adjusted EPS of $4.50–$4.70 and revenue of $5.67 billion–$5.84 billion, surpassing analysts’ expectations of $4.33 and $5.64 billion, respectively.

Year-to-date performance

After losing 2.4% of its stock value in 2018, Williams-Sonoma started this year on stronger footing. The company had risen 12.7% year-to-date as of yesterday. Meanwhile, Restoration Hardware parent RH (RH) and Bed Bath & Beyond (BBBY) have risen 10.0% and 20.1%, respectively, and the SPDR S&P Homebuilders ETF (XHB), which invests ~22.0% of its holdings in home improvement and home furnishing retailers, has risen 15.5%.

Series overview

In this series, we’ll compare Williams-Sonoma’s fourth-quarter performance with analysts’ expectations and look at management’s guidance for this year. First, we’ll look at what drove the company’s revenue in the fourth quarter.

Advertisement

More From Market Realist