Williams-Sonoma (NYSE:WSM) Posts Earnings Results, Beats Expectations By $0.21 EPS

Key Points

• Williams-Sonoma reported **$2.00 earnings per share (EPS)** for the quarter, exceeding the consensus estimate of **$1.78** by **$0.22** and achieving a net margin of **14.35%**.
• Despite strong earnings, the company's stock fell **1.5%** to **$194.93**, with analysts having a mixed outlook, including price targets as high as **$215.00** and as low as **$166.00**.
• Williams-Sonoma recently announced a quarterly dividend of **$0.66 per share**, which reflects a **1.4% dividend yield** and a payout ratio of **29.90%**.

Williams-Sonoma (NYSE:WSM - Get Free Report) issued its quarterly earnings data on Wednesday. The specialty retailer reported $2.00 EPS for the quarter, topping analysts' consensus estimates of $1.79 by $0.21, Zacks reports. The business had revenue of $1.84 billion during the quarter, compared to analysts' expectations of $1.82 billion. Williams-Sonoma had a net margin of 14.35% and a return on equity of 52.79%. The business's revenue was up 2.7% on a year-over-year basis. During the same period last year, the company posted $1.74 EPS. Williams-Sonoma updated its FY 2025 guidance to EPS.

Williams-Sonoma Trading Down 2.7%

Shares of NYSE WSM traded down $5.32 during trading on Wednesday, reaching $192.61. 2,115,213 shares of the company traded hands, compared to its average volume of 1,915,481. The stock has a market cap of $23.69 billion, a P/E ratio of 21.81, a PEG ratio of 3.20 and a beta of 1.47. Williams-Sonoma has a 12-month low of $125.33 and a 12-month high of $219.98. The firm's fifty day simple moving average is $182.11 and its 200 day simple moving average is $172.52.

Williams-Sonoma Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, July 18th were given a $0.66 dividend. The ex-dividend date was Friday, July 18th. This represents a $2.64 dividend on an annualized basis and a yield of 1.4%. Williams-Sonoma's dividend payout ratio is currently 29.90%.

Analyst Ratings Changes

Several brokerages have commented on WSM. KeyCorp boosted their price objective on shares of Williams-Sonoma from $181.00 to $230.00 and gave the company an "overweight" rating in a research report on Monday. Telsey Advisory Group reiterated an "outperform" rating and issued a $215.00 price target on shares of Williams-Sonoma in a report on Friday, August 22nd. Citigroup increased their price objective on Williams-Sonoma from $162.00 to $202.00 and gave the stock a "neutral" rating in a research note on Friday, August 22nd. Wells Fargo & Company lifted their target price on Williams-Sonoma from $170.00 to $190.00 and gave the company an "equal weight" rating in a research report on Monday. Finally, Jefferies Financial Group reiterated a "buy" rating on shares of Williams-Sonoma in a report on Tuesday, May 13th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $189.65.

Insider Buying and Selling at Williams-Sonoma

In related news, CFO Jeffrey Howie sold 4,000 shares of the company's stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $168.96, for a total value of $675,840.00. Following the completion of the transaction, the chief financial officer owned 34,388 shares of the company's stock, valued at approximately $5,810,196.48. This represents a 10.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Laura Alber sold 30,000 shares of the firm's stock in a transaction that occurred on Thursday, May 29th. The shares were sold at an average price of $164.33, for a total value of $4,929,900.00. Following the completion of the sale, the chief executive officer directly owned 996,927 shares in the company, valued at approximately $163,825,013.91. The trade was a 2.92% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 68,000 shares of company stock valued at $11,279,580. Company insiders own 1.10% of the company's stock.

Institutional Trading of Williams-Sonoma

Several institutional investors have recently modified their holdings of WSM. State of Wyoming acquired a new stake in shares of Williams-Sonoma in the second quarter worth approximately $190,000. Headlands Technologies LLC acquired a new position in Williams-Sonoma in the 2nd quarter valued at $165,000. CANADA LIFE ASSURANCE Co lifted its holdings in Williams-Sonoma by 9.8% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 131,593 shares of the specialty retailer's stock valued at $21,516,000 after purchasing an additional 11,747 shares in the last quarter. MUFG Securities EMEA plc acquired a new stake in Williams-Sonoma during the 2nd quarter worth $59,000. Finally, LGL Partners LLC acquired a new stake in Williams-Sonoma during the 2nd quarter worth $181,000. Institutional investors and hedge funds own 99.29% of the company's stock.

About Williams-Sonoma

Williams-Sonoma, Inc operates as an omni-channel specialty retailer of various products for home. It offers cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams Sonoma Home brand, as well as home furnishings and decorative accessories under the Williams Sonoma lifestyle brand; and furniture, bedding, lighting, rugs, table essentials, and decorative accessories under the Pottery Barn brand.