WSM - Williams-Sonoma: Why We Are No Longer Buyers After The Quarterly Results

2024-05-23 12:29:07 ET

Summary

• Williams-Sonoma has reported quarterly earnings that beat estimates, but sales have still declined year-over-year.
• The company's revenue decline is primarily driven by the Pottery Barn brand, offset partially by the Williams-Sonoma brand, which has achieved slight growth.
• The firm remains committed to returning value to shareholders through dividends and share buybacks, but the stock price offers little upside potential.
• We downgrade WSM from "buy" to "hold".

Williams-Sonoma, Inc. ( WSM ) operates as an omnichannel specialty retailer of various products for the home. The firm owns a range of well-known brands, including West Elm, Pottery Barn, and GreenRow....

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