Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, kitchenware and home decor retailer Williams-Sonoma (NYSE: WSM) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Williams-Sonoma's business, and see what CAPS investors are saying about the stock right now.
Williams-Sonoma facts
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Headquarters (founded)
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San Francisco, Calif. (1956)
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Market Cap
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$1.37 billion
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Industry
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Home furnishings retail
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TTM Revenue
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$3.36 billion
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Management
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Chairman/CEO W. Howard Lester
COO/CFO Sharon Mccollam
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Brands
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Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm
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Return on Equity (average, last five years and TTM)
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16.0% and 2.6%
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Competitors
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Bed Bath & Beyond (Nasdaq: BBBY)
Pier 1 Imports (NYSE: PIR)
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CAPS members bearish on WSM also bearish on
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General Electric (NYSE: GE)
Google (Nasdaq: GOOG)
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CAPS members bullish on WSM also bullish on
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Macy's (NYSE: M)
General Motors (NYSE: GM)
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Sources: Capital IQ, a division of Standard & Poor's, Yahoo! Finance, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 86 of the 225 members who have rated Williams-Sonoma -- some 38% -- believe the stock will underperform the S&P 500 going forward. These bears include Tastylunch and All-Star TSIF, both of whom are ranked in the top 5% of our community.
In late December, Tastylunch gave us the dish on this company: "Luxury retailer that sells easily downtradable kitchen products. Insiders dumping shares like they have the plague (5 million and counting!)."
In a pitch from one week earlier, TSIF elaborates on that negative sentiment:
Retailers have been catching some updrafts lately as some continue to outperform, but others are still on edge. … It is difficult for me to be bullish on retailers with discretionary items. … While I am tepid or adverse to rating retailers due to Mr. Market's lack of fundamentals, [Williams-Sonoma's] books show that it's only being propped up by positive sentiment. Major insider selling.… These are not good signs for a retailer with 627 store fronts and a lot of overhead. Couple these statistics with many of [Williams-Sonoma's] products being discretionary, especially the pottery, decorations, furnishings and unless the low interest rates spike a move in new mortgages, they are in for a difficult few quarters.
What do you think about Williams-Sonoma, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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