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How Will Williams-Sonoma (WSM) Fare This Earnings Season?
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Williams-Sonoma, Inc. (WSM - Free Report) is scheduled to report third-quarter fiscal 2021 results on Nov 18, after the closing bell.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 27.1% and 8.1%, respectively. On a year-over-year basis, earnings and revenues of this multi-channel specialty retailer of premium quality home products improved 80% and 30.7%, respectively.
Markedly, Williams-Sonoma reported better-than-expected earnings in the last four quarters, with the average being 42.6%.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has risen to $3.10 from $3.00 over the past 60 days. The estimated figure indicates an increase of 21.1% from $2.56 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $1.99 billion, suggesting 12.7% growth from the year-ago figure of $1.76 billion.
Positive momentum in the U.S. housing market, brand strength, accelerating growth initiatives and higher e-commerce growth are anticipated to have benefited Williams-Sonoma’s fiscal third-quarter performance.
Although the global impact of the coronavirus pandemic, stiff competition, supply chain disruptions, and rising raw material and labor costs are expected to have been pressing concerns, a resilient housing market scenario, and solid repair & remodeling activities are expected to have benefited the company’s quarterly performance.
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.
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 also 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 4.67%. The metric came in at 23.8% a year ago and 18% in the last reported quarter.
The Zacks Consensus Estimate for Pottery Barn’s comps growth is pegged at 15%. The same improved 24.1% a year ago. For the fiscal second quarter, comps grew 29.6% year over year.
The Zacks Consensus Estimate for West Elm’s comps growth is pegged at 27.3%. The metric was 21.8% a year ago and 51% in the last reported quarter.
The Zacks Consensus Estimate for the namesake brand’s comps growth is pegged at 5%. The metric came in at 30.4% a year ago and 29.8% 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 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are a few companies from the broader Retail-Wholesale sector that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat for the to-be-reported quarter:
Home Depot (HD - Free Report) currently has an Earnings ESP of +1.42% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up 2.1% in the past seven days to $3.40 per share, suggesting growth of 6.9% from the year-ago reported number.
Home Depot’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $34.77 billion, which indicates an improvement of 3.7% from the prior-year quarter. HD has a trailing four-quarter earnings surprise of 9.2%, on average.
Lowe's Companies (LOW - Free Report) currently has an Earnings ESP of +5.71% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up 2.2% in the last seven days to $2.32 per share, suggesting a 17.2% increase from the year-ago reported number.
Yet, Lowe’s top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $21.83 billion, which suggests a decline of 2.1% from the prior-year quarter. LOW has a trailing four-quarter earnings surprise of 10.1%, on average.
Macy's (M - Free Report) currently has an Earnings ESP of +9.77% and a Zacks Rank #1. The company is likely to register bottom-line improvement when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up 19.2% in the last seven days to 31 cents per share, suggesting a substantial improvement from a loss of 19 cents reported in the year-ago quarter.
Macy's top line is also expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.29 billion, which indicates an improvement of 32.6% from the figure reported in the prior-year quarter. M has a trailing four-quarter earnings surprise of 269.8%, on average.
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How Will Williams-Sonoma (WSM) Fare This Earnings Season?
Williams-Sonoma, Inc. (WSM - Free Report) is scheduled to report third-quarter fiscal 2021 results on Nov 18, after the closing bell.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 27.1% and 8.1%, respectively. On a year-over-year basis, earnings and revenues of this multi-channel specialty retailer of premium quality home products improved 80% and 30.7%, respectively.
Markedly, Williams-Sonoma reported better-than-expected earnings in the last four quarters, with the average being 42.6%.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has risen to $3.10 from $3.00 over the past 60 days. The estimated figure indicates an increase of 21.1% from $2.56 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $1.99 billion, suggesting 12.7% growth from the year-ago figure of $1.76 billion.
WilliamsSonoma, Inc. Price and EPS Surprise
WilliamsSonoma, Inc. price-eps-surprise | WilliamsSonoma, Inc. Quote
Factors to Note
Positive momentum in the U.S. housing market, brand strength, accelerating growth initiatives and higher e-commerce growth are anticipated to have benefited Williams-Sonoma’s fiscal third-quarter performance.
Although the global impact of the coronavirus pandemic, stiff competition, supply chain disruptions, and rising raw material and labor costs are expected to have been pressing concerns, a resilient housing market scenario, and solid repair & remodeling activities are expected to have benefited the company’s quarterly performance.
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.
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 also 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 4.67%. The metric came in at 23.8% a year ago and 18% in the last reported quarter.
The Zacks Consensus Estimate for Pottery Barn’s comps growth is pegged at 15%. The same improved 24.1% a year ago. For the fiscal second quarter, comps grew 29.6% year over year.
The Zacks Consensus Estimate for West Elm’s comps growth is pegged at 27.3%. The metric was 21.8% a year ago and 51% in the last reported quarter.
The Zacks Consensus Estimate for the namesake brand’s comps growth is pegged at 5%. The metric came in at 30.4% a year ago and 29.8% 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 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Williams-Sonoma currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With a Favorable Combination
Here are a few companies from the broader Retail-Wholesale sector that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat for the to-be-reported quarter:
Home Depot (HD - Free Report) currently has an Earnings ESP of +1.42% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up 2.1% in the past seven days to $3.40 per share, suggesting growth of 6.9% from the year-ago reported number.
Home Depot’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $34.77 billion, which indicates an improvement of 3.7% from the prior-year quarter. HD has a trailing four-quarter earnings surprise of 9.2%, on average.
Lowe's Companies (LOW - Free Report) currently has an Earnings ESP of +5.71% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up 2.2% in the last seven days to $2.32 per share, suggesting a 17.2% increase from the year-ago reported number.
Yet, Lowe’s top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $21.83 billion, which suggests a decline of 2.1% from the prior-year quarter. LOW has a trailing four-quarter earnings surprise of 10.1%, on average.
Macy's (M - Free Report) currently has an Earnings ESP of +9.77% and a Zacks Rank #1. The company is likely to register bottom-line improvement when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up 19.2% in the last seven days to 31 cents per share, suggesting a substantial improvement from a loss of 19 cents reported in the year-ago quarter.
Macy's top line is also expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.29 billion, which indicates an improvement of 32.6% from the figure reported in the prior-year quarter. M has a trailing four-quarter earnings surprise of 269.8%, on average.