Williams-Sonoma Set to Report Q1 Earnings Amid Market Performance

With a market cap of $17.5 billion, Williams-Sonoma, Inc. (WSM) stands as an omnichannel specialty retailer focusing on home products. Founded in 1956 and based in San Francisco, California, the company offers a variety of items for cooking, dining, and entertaining, including cookware, tools, furniture, and cookbooks.

Upcoming Earnings Expectations

The company is set to report its Q1 earnings on Wednesday, May 28. Analysts anticipate an earnings per share (EPS) of $1.75, reflecting a 14.2% decline from $2.04 in the same quarter last year. Notably, WSM has exceeded earnings estimates in all four previous quarters. Recently, its EPS of $3.28 outstripped forecasts by 12.7%, driven by significant demand and sales growth.

Annual Earnings Outlook

For the current fiscal year, analysts project an EPS of $8.49 for WSM, down 3.4% from $8.79 in fiscal 2024. However, looking further ahead, estimates suggest a 6.1% year-over-year increase, predicting an EPS of $9.01 in fiscal 2026.

Stock Performance and Market Comparison

Over the past year, WSM shares have risen by 8.1%, slightly trailing the S&P 500 Index’s gain of 8.4% and the Consumer Discretionary Select Sector SPDR Fund’s 12.4% return.

Recent Quarterly Performance

Following the Q4 earnings release on March 19, WSM stock experienced a 3.5% drop. The company reported a 3.1% year-over-year increase in comparable brand revenue, totaling $2.5 billion in net revenues. Additionally, its gross margin improved by 130 basis points to 47.3%, underscoring strong profitability. WSM also achieved a record-high operating margin of 21.5%, an increase of 140 basis points from the previous year.

Analyst Ratings and Price Target

Analysts maintain a moderately bullish outlook for WSM stock, reflected in a “Moderate Buy” rating. Among 19 analysts covering the stock, five rate it a “Strong Buy,” one a “Moderate Buy,” 12 a “Hold,” and one a “Strong Sell.” The mean price target of $179.61 indicates a potential upside of 17.7% from its current trading price.

On the date of publication, Kritika Sarmah did not hold positions in any securities mentioned in this article. All information and data is provided for informational purposes. For more details, please refer to Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.