Williams-Sonoma reports Q1 adjusted EPS
74c, consensus (15c) 16:17 WSM
Reports Q1 revenue $1.235B, consensus $1.02B. Total comparable brand revenue growth of 2.6%, with positive comparable revenue growth in almost all brands, including Pottery Barn Kids and Teen at 8.5%, Williams Sonoma
at 5.4% and West Elm at 3.3%. "As the COVID-19 health crisis continues to impact
our daily lives, our deep gratitude goes to all of the people who are taking care of our communities in the fight against this pandemic. We also want to thank our associates for their agility, commitment and partnership in continuing to meet our customers' needs while prioritizing the health and safety of each other, our customers and our communities," said Laura Alber, President and Chief Executive Officer. "In this highly disrupted environment, we are proud to deliver 2.6% comp growth in the first quarter, despite having all of our 616 stores closed for more than half of the quarter. Our large e-commerce business had breakout comp growth in the second half of the quarter and continues to accelerate. Our teams maximized demand online, leaning into new and innovative ways to engage and serve our customers virtually. We gained market share with strong new customer growth in our DTC
business, giving us even more confidence in the growth trajectory of our e-commerce business longer term," Alber continued. "The resilience of our business through this crisis exemplifies the advantage of our unique multi-brand, multi-channel platform and our commitment to all of our stakeholders. Nothing makes me prouder than to have achieved our results while staying true to our company's core value of taking care of our people, customers and communities. Our strong financial position and fortress balance sheet
have allowed us to support our associates with pay continuation, while giving back to support relief efforts in our local communities."
Williams-Sonoma price target raised to $76 from $70 at RBC
Capital 06:45 WSM RBC
Capital analyst Scot Ciccarelli raised the firm's price target on Williams-Sonoma to $76 from $70 but keeps a Sector Perform rating on the shares. The company's Q1 earnings
beat was supported by "home-centric purchases" as e-commerce provided an even bigger sales lift than previously anticipated, the analyst tells investors in a research note. However, the discretionary big-ticket item spending could be challenged for the "foreseeable future", Cicarelli warns.