What happened
Week to date, shares of Williams-Sonoma (WSM 1.41%) were up 13% through Thursday's close, according to data provided by S&P Global Market Intelligence. The move higher came after the company announced key leadership changes that management believes put the business in a better position to deliver long-term returns for shareholders.
So what
Williams-Sonoma is riding strong momentum entering the new year. The company posted exceptional results in 2022, despite high inflation and other macroeconomic headwinds. The leadership changes give investors a sneak peak as to what might be really driving the its impressive growth streak.
It is a good sign for the future that Williams-Sonoma has a deep bench of talent where it can promote from within its own ranks. The company made four changes, including promoting Pottery Barn President Marta Benson to chief executive officer of Pottery Barn Brands.
"These leadership moves, coupled with our recent appointment of Day Kornbluth as the new President of West Elm, positions us with an incredibly strong team to deliver long-term growth and success for Williams-Sonoma, Inc.," President and CEO Laura Alber said.
Data by YCharts
Now what
Williams-Sonoma expects full-year revenue to be up in the mid- to high-single-digit range. People have been spending more time at home the last few years, which has been good for Williams-Sonoma and puts the company in position to drive repeat business, especially with business-to-business customers. The company has a great opportunity to grow revenue serving major hotel companies like Marriott, as well as Starbucks.
All of this speaks to why the stock could be a great buy at these lows. The valuation is particularly attractive sitting at a price-to-earnings ratio of 10 based on this year's earnings estimates.
