Please ensure Javascript is enabled for purposes of website accessibility

Why Shares of Williams-Sonoma Are Rising Today

By John Rosevear - Mar 19, 2020 at 11:03AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company reported good earnings after a strong holiday season.

What happened

Shares of Williams-Sonoma (WSM -1.47%) surged on Thursday morning, after the company announced earnings that beat Wall Street estimates.

As of 10:45 a.m. EDT, Williams-Sonoma's shares were up about 11% from Wednesday's closing price.

So what

Williams-Sonoma reported its fourth-quarter results after the market closed on Wednesday, and they were good. Excluding one-time items, the company earned $2.13 per share in the quarter, up from $2.10 per share a year ago and ahead of the $2.05-per-share consensus estimate among Wall Street analysts polled by FactSet. 

Revenue of $1.8 billion was roughly flat from the year-ago period, and in line with estimates.

The interior of a Williams-Sonoma store.

Image source: Williams-Sonoma.

CEO Laura Alber said the holiday season had been strong, with comparable-brand revenue growth of 7.6% driven by strong growth for West Elm (13.9%) and Pottery Barn (7.1%) and a return to growth for the core Williams-Sonoma brand (3.3%). 

Now what

What's ahead for Willams-Sonoma in 2020? It's hard to predict. CFO Julie Whalen declined to provide investors with guidance for fiscal 2020 for the time being, citing the uncertainties around the coronavirus pandemic. 

The company said earlier this week that it has closed all of its stores in the U.S. and Canada until at least April 2. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Williams-Sonoma, Inc. Stock Quote
Williams-Sonoma, Inc.
WSM
$116.67 (-1.47%) $-1.74

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
319%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.