The 10-second takeaway
For the quarter ended July 29 (Q2), Williams-Sonoma beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins improved, net margins expanded.
Williams-Sonoma notched revenue of $874.3 million. The 22 analysts polled by S&P Capital IQ foresaw a top line of $863.4 million on the same basis. GAAP reported sales were 7.3% higher than the prior-year quarter's $814.8 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 $0.43. The 25 earnings estimates compiled by S&P Capital IQ anticipated $0.41 per share. GAAP EPS of $0.43 for Q2 were 16% higher than the prior-year quarter's $0.37 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 52.5%, 50 basis points worse than the prior-year quarter. Operating margin was 8.0%, 10 basis points better than the prior-year quarter. Net margin was 5.0%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $921.1 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $4.02 billion. The average EPS estimate is $2.54.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 220 members out of 316 rating the stock outperform, and 96 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 71 give Williams-Sonoma a green thumbs-up, and 15 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 $40.10.
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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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 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.