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Williams-Sonoma (WSM) to Post Q1 Earnings: E-commerce Holds Key
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Williams-Sonoma, Inc. (WSM - Free Report) is scheduled to report first-quarter fiscal 2021 results on May 26, after the closing bell.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 16.5% and 8.3%, respectively. On a year-over-year basis, earnings and revenues of this multi-channel specialty retailer of premium quality home products improved 85.4% and 24.4%, respectively.
Markedly, Williams-Sonoma reported better-than-expected earnings in the last four quarters, with the average being 222.3%.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has risen 4% to $1.80 over the past 30 days. The estimated figure indicates an increase of 143.2% from 74 cents per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $1.48 billion, suggesting 19.4% growth from the year-ago figure of $1.24 billion.
A resilient housing market scenario, and solid repair & remodeling activities are expected to have benefited Williams-Sonoma’s performance in the fiscal first quarter. Importantly, online sales trends accelerated, which more than offset the lost sales from closed stores. This is expected to have meaningfully contributed to its top line in the to-be-reported quarter.
While the global impact of the coronavirus pandemic, stiff competition, tariffs, and rising raw material and labor costs are expected to have been pressing concerns, a strong housing backdrop is anticipated to have benefited the company. Home furnishing demand has been strong and must have accelerated in the fiscal first quarter, given strong housing market data.
Again, its multi-channel multi-brand platform, strong e-commerce growth, solid execution of strategic initiatives, digital leadership, product innovation, retail transformation and operational excellence across businesses are expected to have provided some support to the top line. Also, cross-brand initiatives are likely to have positively contributed to consolidated comps to some extent.
The Zacks Consensus Estimate for Pottery Barn Kids and Teen’s comps growth is pegged at 16.7%. The metric came in at 8.5% a year ago and 25.7% in the last reported quarter.
The Zacks Consensus Estimate for Pottery Barn’s comps growth is pegged at 26.2%. The same declined 1.1% a year ago. In the fiscal fourth quarter, comps grew 25.7% year over year.
The Zacks Consensus Estimate for West Elm’s comps growth is pegged at 21.7%. The metric was 3.3% a year ago and 25.2% in the last reported quarter.
The Zacks Consensus Estimate for the namesake brand’s comps growth is pegged at 24.7%. The metric came in at 5.4% a year ago and 26.2% in the last reported quarter.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Williams-Sonoma this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -6.28%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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Williams-Sonoma (WSM) to Post Q1 Earnings: E-commerce Holds Key
Williams-Sonoma, Inc. (WSM - Free Report) is scheduled to report first-quarter fiscal 2021 results on May 26, after the closing bell.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 16.5% and 8.3%, respectively. On a year-over-year basis, earnings and revenues of this multi-channel specialty retailer of premium quality home products improved 85.4% and 24.4%, respectively.
Markedly, Williams-Sonoma reported better-than-expected earnings in the last four quarters, with the average being 222.3%.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has risen 4% to $1.80 over the past 30 days. The estimated figure indicates an increase of 143.2% from 74 cents per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $1.48 billion, suggesting 19.4% growth from the year-ago figure of $1.24 billion.
WilliamsSonoma, Inc. Price and EPS Surprise
WilliamsSonoma, Inc. price-eps-surprise | WilliamsSonoma, Inc. Quote
Factors to Note
A resilient housing market scenario, and solid repair & remodeling activities are expected to have benefited Williams-Sonoma’s performance in the fiscal first quarter. Importantly, online sales trends accelerated, which more than offset the lost sales from closed stores. This is expected to have meaningfully contributed to its top line in the to-be-reported quarter.
While the global impact of the coronavirus pandemic, stiff competition, tariffs, and rising raw material and labor costs are expected to have been pressing concerns, a strong housing backdrop is anticipated to have benefited the company. Home furnishing demand has been strong and must have accelerated in the fiscal first quarter, given strong housing market data.
Again, its multi-channel multi-brand platform, strong e-commerce growth, solid execution of strategic initiatives, digital leadership, product innovation, retail transformation and operational excellence across businesses are expected to have provided some support to the top line. Also, cross-brand initiatives are likely to have positively contributed to consolidated comps to some extent.
The Zacks Consensus Estimate for Pottery Barn Kids and Teen’s comps growth is pegged at 16.7%. The metric came in at 8.5% a year ago and 25.7% in the last reported quarter.
The Zacks Consensus Estimate for Pottery Barn’s comps growth is pegged at 26.2%. The same declined 1.1% a year ago. In the fiscal fourth quarter, comps grew 25.7% year over year.
The Zacks Consensus Estimate for West Elm’s comps growth is pegged at 21.7%. The metric was 3.3% a year ago and 25.2% in the last reported quarter.
The Zacks Consensus Estimate for the namesake brand’s comps growth is pegged at 24.7%. The metric came in at 5.4% a year ago and 26.2% in the last reported quarter.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Williams-Sonoma this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -6.28%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Williams-Sonoma — which shares space with RH (RH - Free Report) , At Home Group Inc. and Ethan Allen Interiors Inc. (ETH - Free Report) in the Zacks Retail - Home Furnishings industry — currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
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A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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