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What: Shares of upscale home goods retailer Williams-Sonoma
So what: Sluggish consumer spending has pressured the company's Williams-Sonoma brand, but strong second-quarter revenue -- $874.3 million versus the consensus of $864.2 million -- coupled with upbeat guidance for the full year, is triggering hopes of a prolonged turnaround. Improving sales at its Pottery Barn and West Elm stores, overseas expansion, and e-commerce growth continue to offer shareholders plenty of upside, so stabilizing revenue at Williams-Sonoma should do well to relieve much of the uncertainty weighing on the stock.
Now what: Management now sees full-year adjusted EPS of $2.44-$2.51 on revenue of $3.98 billion-$4.03 billion in revenue, versus the consensus of $2.50 and $4 billion, respectively. "Our momentum entering the third quarter remains strong, and we are well-prepared to execute our second-half strategies," CEO Laura Alber said. With the stock hitting a new 52-week high today and currently trading at a P/E of around 20, however, I'd wait for pullback before buying into that bullishness.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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 Fool's disclosure policy always gets a perfect score.