Zacks Research Expects Stronger Earnings for Williams-Sonoma

Key Points

• Zacks Research nudged up its FY2027 EPS estimate for Williams-Sonoma to $9.28 from $9.25, slightly below the current consensus estimate of $9.33 per share.
• The company’s latest quarterly results beat expectations, with EPS of $1.93 versus the $1.80 estimate and revenue of $1.81 billion, up 4.4% year over year.
• Williams-Sonoma also raised its quarterly dividend to $0.76 per share from $0.66, bringing the annualized payout to $3.04 and the yield to about 1.5%.

Williams-Sonoma, Inc. (NYSE:WSM - Free Report) - Investment analysts at Zacks Research boosted their FY2027 earnings per share (EPS) estimates for shares of Williams-Sonoma in a research report issued on Thursday, June 4th. Zacks Research analyst Team now anticipates that the specialty retailer will post earnings of $9.28 per share for the year, up from their prior forecast of $9.25. The consensus estimate for Williams-Sonoma's current full-year earnings is $9.33 per share. Zacks Research also issued estimates for Williams-Sonoma's Q1 2028 earnings at $2.00 EPS, Q2 2028 earnings at $2.19 EPS and Q1 2029 earnings at $2.20 EPS.

Williams-Sonoma (NYSE:WSM - Get Free Report) last announced its quarterly earnings results on Thursday, May 21st. The specialty retailer reported $1.93 EPS for the quarter, topping analysts' consensus estimates of $1.80 by $0.13. The business had revenue of $1.81 billion for the quarter, compared to analysts' expectations of $1.80 billion. Williams-Sonoma had a return on equity of 53.29% and a net margin of 13.81%.The business's quarterly revenue was up 4.4% on a year-over-year basis. During the same period in the previous year, the firm earned $1.85 EPS.

A number of other equities analysts have also recently commented on WSM. Telsey Advisory Group reaffirmed an "outperform" rating and issued a $225.00 price target (up from $220.00) on shares of Williams-Sonoma in a research note on Friday, May 22nd. Evercore set a $200.00 price objective on Williams-Sonoma in a research report on Tuesday, April 14th. Morgan Stanley set a $210.00 target price on Williams-Sonoma and gave the company an "equal weight" rating in a research note on Friday, May 22nd. Royal Bank Of Canada set a $192.00 target price on Williams-Sonoma and gave the company an "outperform" rating in a research note on Friday, May 22nd. Finally, Weiss Ratings lowered Williams-Sonoma from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, Williams-Sonoma presently has a consensus rating of "Moderate Buy" and an average price target of $209.06.

Williams-Sonoma Price Performance

Shares of Williams-Sonoma stock opened at $207.99 on Friday. The business's 50 day simple moving average is $187.93 and its two-hundred day simple moving average is $192.38. The stock has a market capitalization of $24.49 billion, a P/E ratio of 23.29, a price-to-earnings-growth ratio of 2.44 and a beta of 1.51. Williams-Sonoma has a one year low of $152.20 and a one year high of $222.00.

Williams-Sonoma Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 22nd. Investors of record on Friday, April 17th were given a dividend of $0.76 per share. This represents a $3.04 dividend on an annualized basis and a yield of 1.5%. This is a positive change from Williams-Sonoma's previous quarterly dividend of $0.66. The ex-dividend date was Friday, April 17th. Williams-Sonoma's payout ratio is currently 29.56%.

Insider Activity at Williams-Sonoma

In other news, EVP Karalyn Yearout sold 2,267 shares of the firm's stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $192.49, for a total value of $436,374.83. Following the transaction, the executive vice president directly owned 23,351 shares in the company, valued at $4,494,833.99. This trade represents a 8.85% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jeffrey Howie sold 32,684 shares of the firm's stock in a transaction on Thursday, March 26th. The stock was sold at an average price of $180.64, for a total value of $5,904,037.76. Following the completion of the transaction, the chief financial officer owned 34,138 shares in the company, valued at approximately $6,166,688.32. This trade represents a 48.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 106,370 shares of company stock worth $19,720,823 over the last quarter. Company insiders own 1.10% of the company's stock.

Hedge Funds Weigh In On Williams-Sonoma

A number of institutional investors and hedge funds have recently modified their holdings of WSM. Aristotle Capital Management LLC boosted its stake in shares of Williams-Sonoma by 22.0% in the 1st quarter. Aristotle Capital Management LLC now owns 11,140,471 shares of the specialty retailer's stock worth $2,031,242,000 after buying an additional 2,009,032 shares during the last quarter. Norges Bank bought a new position in Williams-Sonoma in the 4th quarter worth $316,920,000. Boston Partners bought a new position in Williams-Sonoma in the 3rd quarter worth $254,778,000. Bank of America Corp DE raised its holdings in Williams-Sonoma by 102.8% in the 1st quarter. Bank of America Corp DE now owns 1,108,589 shares of the specialty retailer's stock worth $202,129,000 after purchasing an additional 561,977 shares during the period. Finally, First Trust Advisors LP raised its holdings in Williams-Sonoma by 30.7% in the 3rd quarter. First Trust Advisors LP now owns 2,269,461 shares of the specialty retailer's stock worth $443,566,000 after purchasing an additional 532,995 shares during the period. 99.29% of the stock is currently owned by hedge funds and other institutional investors.

Williams-Sonoma Company Profile

Williams‑Sonoma, Inc is a specialty retailer focused on the home and culinary markets, best known for premium cookware, kitchen tools and home furnishings. The company traces its roots to a single cookware store founded by Chuck Williams in 1956 in Sonoma, California, and has evolved into a multi‑brand home furnishings and housewares business. Its merchandise mix spans cookware and kitchen electrics, tabletop and food prep items, furniture, bedding, lighting and decorative accessories designed for both everyday use and higher‑end interiors.

The company operates a portfolio of consumer brands that target distinct segments of the home market.

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