The Company in a Nutshell
- WSM made a successful shift in the internet era! It owns strong brands and remains in control of its market through e-commerce.
- WSM also has a strong focus on its customers’ experience & satisfaction.
- Through the data it gathers online and through its loyalty program, WSM offers targeted promotions to its members.
- We do not cover Williams Sonoma at the moment.
Date Reviewed | N/A |
Company Name | Williams-Sonoma Inc |
Symbol | WSM |
Sector | Consumer Discretionary |
Industry | Specialty Retail |
Beta | 1.715 |
PRO Rating | 3 |
Dividend Safety | 4 |
Business Model
Williams-Sonoma, Inc. is an omni-channel specialty retailer for home products. Its brands include Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, and Mark and Graham are marketed through e-commerce Websites, direct-mail catalogs and retail stores. These brands are also part of the Company's loyalty and credit card program that offers members benefits across the Williams-Sonoma family of brands. Williams Sonoma products include everything for cooking, dining and entertaining, including cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture and a library of cookbooks. The brand also includes Williams Sonoma Home that offers home furnishings and decorative accessories. Pottery Barn is an omnichannel home furnishings retailer. It operates 518 stores, which include 480 stores in 40 states, Washington, D.C. and Puerto Rico, 19 stores in Canada, 17 stores in Australia and two stores in the United Kingdom.
Current price | 150.04 |
ROE | 49.60 % |
ROIC | 39.20 % |
Shareholder Yield | -0.10 % |
5-Yr Total Return | 406.20 % |
1-Yr Total Return | 109.70 % |
Next Earnings Date | 11-14-24 |
Latest Quarter Information
What the CEO said:
“We are pleased to deliver strong results in the first quarter of 2024, driven by an improving top-line trend and continued strength in our profitability. We remain committed to executing on our three key priorities in 2024 – returning to growth, elevating our world-class customer service, and driving margin,” said Laura Alber, President and Chief Executive Officer.
What we say:
06-08-2024. Beating estimates, Williams-Sonoma Q1’24 sales were $1.66B, down 5.42%, and adjusted EPS of $3.48 rose 31.8% vs Q1’23. Results include an adjustment, reducing the cost of goods sold by $49M, to correct over-recognized freight expenses in fiscal 2021, 2022, and 2023. Gross margin of 48.3%, including a benefit of +290 bps from the out-of-period adjustment. Without the adjustment, gross margin was 45.4%, +690 bps vs. Q1’23, due to higher merchandise margins and supply chain efficiencies of +240 bps, mitigated by occupancy deleverage. SG&A expenses were 28.8% of sales, +170 bps YoY, due to higher advertising spend and incentive compensation, rising 0.7% to $479M, +0.7%.
Investment Thesis
Dividend Triangle
5-Yr Rev. Growth | 6.45 % |
5-Yr EPS Growth | 29.15 % |
5-Yr Div Growth | 15.90 % |
Potential Risks
Debt/Equity | 0.00 |
Financial Debt to EBITDA (TTM) | 0.00 |
Current Ratio (Quarterly) | 1.45 |
Credit Score | 92 |
Dividend Growth Perspective
Dividend ($) | 2.28 |
Dividend Yield Fwd | 1.55 % |
Dividend Frequency | Quarterly |
Average 5-Yr Yield | 2.05 % |
Payout Ratio (%) | 24.95 |
Cash Payout Ratio (%) | 19.80 |
DGR 1-Yr | 26.65 |
DGR 3-Yr | 21.25 |
DGR 5-Yr | 15.90 |
DGR Streak | 17 |
Chowder Score | 17.45 |
Next DVD PMT | 11-22-24 |
Valuation
(Data for `ddm_recent_annual_dividend` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
Market Cap | 19 B |
PE Ratio | 18.05 |
Fwd PE | 18.30 |
Price to Book Ratio | 8.50 |
DDM Valuation | N/A |
Average 5-Yr PE | 13.93 |
Value Score | 41 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.