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Williams-Sonoma Stock Bounces After Beating Expectations

Published 05/26/2022, 02:47 PM
Updated 05/26/2022, 02:59 PM
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By Liz Moyer

Investing.com -- Williams-Sonoma Inc (NYSE:WSM) shares jumped more than 12% on Thursday after beating expectations on revenue and profit for the most recent quarter and reconfirming its outlook for the year.

That guidance is for mid-to-high single digits comparisons and operating margins about even with fiscal 2021 results. Laura Alber, president and CEO of Williams-Sonoma, said, "We have a solid line-up of growth initiatives and operational improvements planned for the balance of the year. And, as we look further, we are confident in our path to be a $10 billion company by 2024.”

The seller of kitchen and household gadgets and furnishings is among the retailers that helped buck the trend this earnings season. Other big retailers reported consumers cutting back on discretionary spending in the face of rising inflation. 

A strong housing market and continued hybrid work mean people are continuing to spend time at home, Alber told analysts on Wednesday. Higher costs for gasoline and dining out tend to encourage "people to stay at home to cook and entertain,” she said.

Williams-Sonoma’s namesake stores reported first quarter same store sales fall 2% because of inventory shortages, but Pottery Barn and West Elm stores saw same location sales rise 15% and 13%, respectively. 

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