Kitchenware and home goods retailer Williams-Sonoma (NYSE:WSM) will be announcing earnings results this Wednesday before the bell. Here’s what to look for.
Williams-Sonoma beat analysts’ revenue expectations by 4% last quarter, reporting revenues of $1.73 billion, up 4.2% year on year. It was a very strong quarter for the company, with a decent beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is Williams-Sonoma a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Williams-Sonoma’s revenue to grow 2.4% year on year to $1.83 billion, a reversal from the 4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.80 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Williams-Sonoma has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Williams-Sonoma’s peers in the home furnishing and improvement retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Arhaus delivered year-on-year revenue growth of 15.7%, beating analysts’ expectations by 7.4%, and Sleep Number reported a revenue decline of 19.7%, falling short of estimates by 8.3%. Arhaus traded up 13.5% following the results while Sleep Number was down 10.2%.
Read our full analysis of Arhaus’s results here and Sleep Number’s results here.
There has been positive sentiment among investors in the home furnishing and improvement retail segment, with share prices up 2.5% on average over the last month. Williams-Sonoma is up 5.2% during the same time and is heading into earnings with an average analyst price target of $191.53 (compared to the current share price of $198.04).
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