Williams-Sonoma Inc. (NYSE:WSM), a specialty retail company yesterday reported their first quarter 2016 financial results. Williams-Sonoma reported their first quarter earnings to be $0.53 per share which beat analyst expectations of $0.50 per share. Williams-Sonoma reported first quarter revenues increased 6.5% year over year to $1.10 billion which beat analyst expectations of $1.08 billion.
Williams-Sonoma, Inc. CEO’s Comments
In the first quarter we saw accelerated growth in West Elm and Williams-Sonoma, as well as improvement across the Pottery Barn brands. We also saw positive results from our inventory and supply chain initiatives. We believe our strong brands and profitable multi-channel strategy create a sustainable competitive advantage. We are executing against our key growth and profitability initiatives, and believe we are on track to deliver on both our near and longer-term goals. Business Wire
WSM Technical Analysis
WSM opened trading yesterday at $52.28, which was up from the previous days trading of $50.88. WSM closed trading yesterday at $52.10 and spiked up after market to $53.85, equivalent to a 3% increase from the closing price. Taking a look at the daily chart we can see that the last time WSM traded above this price level was on May 12th when it traded at $54.51. Taking a closer look at the daily chart we can see that WSM has been on an overall downward trend dating back to April 27th when it traded at $61.55. WSM has a float of 76.11 million shares and traded 2.9 times the normal daily trading volume on Wednesday. For trading purposes, I would like to see WSM open trading on Friday above $53.25 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Williams-Sonoma, Inc. operates as a multi-channel specialty retailer of various products for home. It operates through two segments, E-commerce and Retail. The company offers cooking, dining, and entertaining products, including cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams-Sonoma brand, as well as home furnishings and decorative accessories under the Williams-Sonoma Home brand; and furniture, bedding, bathroom accessories, rugs, curtains, lighting, tabletop, outdoor, and decorative accessories under the Pottery Barn brand. It also provides products designed for creating spaces where children could play, laugh, learn, and grow under the Pottery Barn Kids brand; line of furniture, bedding, lighting, decorative accents, and others for teen bedrooms, dorm rooms, study spaces, and lounges under the PBteen brand; and mixed clean lines, natural materials, and handcrafted collections under West Elm brand.
In addition, the company offers a range of assortments of lighting, hardware, furniture, and home décor inspired by history under the Rejuvenation brand; and women’s and men’s accessories, small leather goods, jewelry, key item apparel, paper, entertaining and bar, home décor, and seasonal items under the Mark and Graham brand. It markets its products through e-commerce Websites, direct mail catalogs, and specialty retail stores. As of January 31, 2016, the company operated 618 stores comprising 571 stores in 43 states, Washington, D.C., and Puerto Rico; 27 stores in Canada; 19 stores in Australia; and 1 store in the United Kingdom, as well as 48 franchised stores and/or e-commerce Websites in various countries in the Middle East, the Philippines, and Mexico. Williams-Sonoma, Inc. was founded in 1956 and is headquartered in San Francisco, California.
By Jonathan G