Williams-Sonoma (WSM) To Report Earnings Tomorrow: Here Is What To Expect

Jabin Bastian /
2024/03/12 3:01 am EDT

Kitchenware and home goods retailer Williams-Sonoma (NYSE:WSM) will be reporting results tomorrow before market hours. Here's what investors should know.

Last quarter Williams-Sonoma reported revenues of $1.85 billion, down 15.4% year on year, missing analyst expectations by 4.5%. It was a mixed quarter for the company. Williams-Sonoma posted a large same-store sales decline that missed expectations and led to a revenue miss. On the other hand, profit margins outperformed and guidance for margins was increased, as the company is planning to be more efficient and cost-conscious in this tougher sales environment.

Is Williams-Sonoma buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Williams-Sonoma's revenue to decline 9.1% year on year to $2.23 billion, a further deceleration on the 1.9% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.17 per share.

Williams-Sonoma Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing three upward and three downward revisions over the last thirty days. The company missed Wall St's revenue estimates five times over the last two years.

Looking at Williams-Sonoma's peers in the home furnishing and improvement retail segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Arhaus's revenues decreased 3.5% year on year, beating analyst estimates by 2.5% and Sleep Number reported revenue decline of 13.7% year on year, exceeding estimates by 2.1%. Arhaus traded flat on the results, and Sleep Number was up 9.5%.

Read our full analysis of Arhaus's results here and Sleep Number's results here.

Investors in the home furnishing and improvement retail segment have had steady hands going into the earnings, with the stocks up on average 1.1% over the last month. Williams-Sonoma is up 4.8% during the same time, and is heading into the earnings with analyst price target of $205.8, compared to share price of $237.7.

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