Hot Stock in the Spotlight: Williams-Sonoma Inc (NYSE: WSM)

On Monday, Shares of Williams-Sonoma Inc (NYSE: WSM) declined -0.64% to $60.99. The stock recorded $60.11 as its minimum price and hit the max level of $61.44, during its most recent trading session. It traded total volume of 1.08M shares lower than the average volume of 2.02M shares.

Williams-Sonoma Inc. (WSM) stated fiscal first-quarter profit of $45.20M.

Earnings Highlights and Summary:

For the first quarter 2018, ended April 29, 2018, Williams-Sonoma’s net revenues increased 8.2% to $1.200B contrast to $1.110B in Q1 2017. The Company’s stated numbers beat analysts’ estimates of $1.160B.

For Q1 2018 Williams-Sonoma stated earnings of $45.20M, or $0.54 per diluted share, contrast to $39.60M, or $0.45 per diluted share, in Q1 2017. Excluding certain discrete items, the Company’s stated quarter non-GAAP earnings surged to $0.67 per diluted share as compared to $0.51 per diluted share in the year earlier same quarter, and came in ahead of Wall Street’s estimates of $0.45 per share.

Williams-Sonoma’s Segment Results:

For Q1 2018, the ecommerce segment’s net revenues advanced 11.3% to $646.0M contrast to $581.0M in Q1 2017. Excluding certain discrete items, the Company’s stated quarter non-GAAP ecommerce net revenues were $645.0M, up 11.2% contrast to the year ago same period. Ecommerce net revenues grew to a record high of 53.7% of total company revenues contrast to 52.2% in Q1 2017. During Q1 2018, the Williams-Sonoma brand delivered a 5.6% comp on top of the 3.2% comp in the year ago same period, reflecting their best quarterly comp performance in 4 years.

The retail segment’s net revenues rose 4.9% to $557.0M in Q1 2018 from $531.0M in Q1 2017.

Cash Matters:

Williams-Sonoma’s cash at the end of Q1 2018 was $290.20M as compared to $94.00M at the end of Q1 2017. In the stated quarter, the Company invested $34.0M in the business and returned $72.0M to stockholders through share repurchases and dividends, comprising $38.0M in share repurchases and $34.0M in dividends.

Williams-Sonoma’s Merchandise inventories at the end of Q1 2018 increased 1.5% to $1.050B from $1.040B at the end of Q1 2017.

During Q1 2018, Williams-Sonoma repurchased 732.0K shares of common stock at an average cost of $51.53 per share and a total cost of about $38.0M. As of April 29, 2018, there was about $481.0M remaining under the Company’s current stock repurchase program.

Outlook:

For the fiscal year 2018, Williams-Sonoma raised its net revenue forecast to be in the range of $5.500B to $5.660B. The Company also raised its non-GAAP earnings guidance to be in the band of $4.15 – $4.25 per diluted share.

WSM has the market capitalization of $5.06B and its EPS growth ratio for the past five years was 6.60%. The return on assets ratio of the Company was 10.10% while its return on investment ratio stands at 20.10%. Price to sales ratio was 0.94.

Marion Frost

Marion Frost

I am Marion Frost and I have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.