Home Furnishing Retailer Williams-Sonoma Beats On Q3 Bottomline: Details
Portfolio Pulse from Shivani Kumaresan
Williams-Sonoma, Inc (NYSE:WSM) reported Q3 FY23 sales of $1.854 billion, a 15.5% decrease YOY, missing estimates of $1.957 billion. Comparable brand revenue fell 14.6%. Adjusted EPS was $3.66, beating estimates of $3.35. Gross margin expanded to 44.4%, but gross profit dropped 9.7% to $822.6 million. Operating income decreased 7.2% to $315 million. The company has $698.8 million in cash. FY23 revenue is expected to decline 10%-12%, with higher operating margin and EPS. WSM shares rose 4.50% to $168.66.
November 16, 2023 | 6:28 pm
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Williams-Sonoma reported lower Q3 sales but beat EPS estimates. Gross margin improved, but profits declined. The company revised FY23 revenue expectations downwards but anticipates higher operating margin and EPS. Shares increased by 4.50%.
Despite the sales miss, the beat on EPS and the positive outlook on operating margin and EPS for FY23 are likely to be viewed favorably by investors in the short term, as reflected by the stock's positive price action post-earnings.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100