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Kitchenware and home goods retailer Williams-Sonoma (NYSE:WSM) will be announcing earnings results tomorrow before market hours. Here's what you need to know.
Last quarter Williams-Sonoma reported revenues of $1.86 billion, down 12.9% year on year, missing analyst expectations by 4.8%. It was a decent quarter for the company. Williams-Sonoma beat analysts' EPS expectations and raised its operating margin projections for the full year. That really stood out as a positive in these results. On the other hand, its revenue missed Wall Street's estimates, driven by underperformance at Pottery Barn and West Elm, and it lowered its full-year sales forecast.
Is Williams-Sonoma buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Williams-Sonoma's revenue to decline 11.5% year on year to $1.94 billion, a deceleration on the 7.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.34 per share.
The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing four downwards revisions over the last thirty days. The company missed Wall St's revenue estimates four times over the last two years.
Looking at Williams-Sonoma's peers in the home furnishing and improvement retail segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Arhaus delivered top-line growth of 1.9% year on year, beating analyst estimates by 2.6% and Sleep Number reported revenue decline of 12.6% year on year, missing analyst estimates by 7.7%. Arhaus traded flat on the results, Sleep Number was down 14.3%.
Read our full analysis of Arhaus's results here and Sleep Number's results here.
Investors in the home furnishing and improvement retail segment have had steady hands going into the earnings, with the stocks up on average 1.3% over the last month. Williams-Sonoma is down 3.3% during the same time, and is heading into the earnings with analyst price target of $153.8, compared to share price of $158.
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