The 10-second takeaway
For the quarter ended April 29 (Q1), Williams-Sonoma met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased.
Margins dropped across the board.
Williams-Sonoma notched revenue of $817.6 million. The 20 analysts polled by S&P Capital IQ looked for sales of $811.1 million on the same basis. GAAP reported sales were 6.1% higher than the prior-year quarter's $770.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.34. The 23 earnings estimates compiled by S&P Capital IQ averaged $0.32 per share. GAAP EPS of $0.30 for Q1 were 3.4% higher than the prior-year quarter's $0.29 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.8%, 60 basis points worse than the prior-year quarter. Operating margin was 6.0%, 90 basis points worse than the prior-year quarter. Net margin was 3.8%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $865.0 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $3.99 billion. The average EPS estimate is $2.46.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 212 members out of 308 rating the stock outperform, and 96 members rating it underperform. Among 87 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give Williams-Sonoma a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Williams-Sonoma is outperform, with an average price target of $39.19.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Williams-Sonoma. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.