Williams-Sonoma Shares Gain After Q2 Earnings Beat Despite Softening Industry Metrics & Revenue Trends
Portfolio Pulse from Nabaparna Bhattacharya
Williams-Sonoma, Inc. (NYSE:WSM) reported a Q2 FY23 revenue decline of 12.9% YoY to $1.86 billion, missing the consensus of $1.96 billion. Non-GAAP EPS was $3.12, above the consensus of $2.71. The company revised its FY23 guidance reflecting lower revenue trends, expecting a revenue decline of 5%-10%. Despite the softening industry metrics and revenue trends, WSM shares are trading higher by 10.6%.
August 23, 2023 | 2:47 pm
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Williams-Sonoma reported a Q2 FY23 revenue decline, missing consensus. However, shares are trading higher.
Despite the reported decline in revenue for Q2 FY23 and the revised guidance reflecting lower revenue trends, the market has reacted positively to the earnings report. This could be due to the company's EPS beating the consensus, indicating better-than-expected profitability. The increase in share price suggests that investors may be focusing more on the profitability aspect rather than the revenue decline.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100