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Here's How Much You'd Have If You Invested $1000 in Williams-Sonoma a Decade Ago

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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.

What if you'd invested in Williams-Sonoma (WSM - Free Report) ten years ago? It may not have been easy to hold on to WSM for all that time, but if you did, how much would your investment be worth today?

Williams-Sonoma's Business In-Depth

With that in mind, let's take a look at Williams-Sonoma's main business drivers.

Headquartered in San Francisco, CA, Williams-Sonoma, Inc. is a multi-channel specialty retailer of premium quality home products. Incorporated in 1973, the company has five brands and each of the brands is are operating segments.

Pottery Barn (accounting for 41.4% of fiscal 2023 total revenues) is the largest brand of the company and offers premium quality furniture, lighting, tabletop, outdoor and decorative accessories.

West Elm (23.9%) produces personalized products designed by the company’s team of artists and designers.

Williams-Sonoma (16.2%) offers cookware, tools, cutlery, electrics, tabletop and bar, outdoor, furniture and cookbooks.

Pottery Barn Kids and Teen (13.7%) deals with products used for putting up nurseries, bedrooms and play spaces. It also caters to the teenage population with furniture, bedding, lighting and decorative accents for teen bedrooms, dorm rooms, study spaces and lounges.

Other segment (4.8%) primarily consists of international franchise operations, Rejuvenation and Mark and Graham. Rejuvenation offers premium quality products that are inspired by history and manufactured in facilities in Portland, OR. Mark and Graham are known for personalized gift items. The brand manufactures women’s and men’s accessories, home décor as well as seasonal items.

(Note:  Zacks identifies fiscal years by the month in which the fiscal year ends, while WSM identifies their fiscal year by the calendar year in which it begins; so comparable figures for any given fiscal year, as published by WSM, will refer to this same fiscal year as being the year before the same year, as identified by Zacks).

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Williams-Sonoma, if you bought shares a decade ago, you're likely feeling really good about your investment today.

A $1000 investment made in December 2014 would be worth $4,895.52, or a 389.55% gain, as of December 23, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

The S&P 500 rose 186.42% and the price of gold increased 114.74% over the same time frame in comparison.

Looking ahead, analysts are expecting more upside for WSM.

Shares of Williams-Sonoma have outperformed the industry in the past six months. The company is benefiting from its e-commerce business, B2B initiative and expansion plans. Its margins grew in the fiscal fourth quarter on the back of a solid operating model, which partially offset prevailing macroeconomic headwinds through supply chain efficiencies and top-tier customer service. Owing to its operational efficiencies, the company expanded its operating margin guidance for fiscal 2024. Earnings estimates for fiscal 2025 have increased in the past 30 days, depicting analysts’ optimism over the stock's growth potential. However, the ongoing softness in the housing market and geopolitical uncertainties are potential woes. Also, increase in occupancy costs, along with employment and general expenses added headwinds.

Shares have gained 6.80% over the past four weeks and there have been 5 higher earnings estimate revisions for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.

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