The chart below shows how WSM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WSM sees a -5.62% change in stock price 10 days leading up to the earnings, and a +3.27% change 10 days following the report. On the earnings day itself, the stock moves by +5.71%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Comp Sales Resilience: Comp sales decreased by only 2.9%, outperforming the industry decline of 7%, indicating strong market share retention.
Operating Margin Improvement: Operating margin improved to 17.8%, an increase of 80 basis points year-over-year, reflecting effective cost management and operational efficiencies.
Earnings Per Share Increase: Earnings per share rose by 7% to $1.96, demonstrating robust profitability despite challenging market conditions.
Stock Repurchase Confidence: The company repurchased $533 million of its stock in Q3, representing 4% of shares outstanding year-to-date, showcasing confidence in its financial health.
Revenue Guidance Adjustment: Full year revenue guidance was raised to a range of down 3% to down 1.5%, reflecting optimism about upcoming sales trends and seasonal product performance.
Negative
Comp Sales Decline Analysis: Comp sales decreased by 2.9% in Q3, underperforming the industry average decline of 7%.
Decline in Furniture Sales: Pottery Barn experienced a significant decline with a negative 7.5% comp in Q3, indicating ongoing challenges in the furniture segment.
Decline in Consumer Demand: West Elm's comp was down 3.5% in Q3, despite some improvements, reflecting continued weakness in consumer demand for furniture.
Operating Expenses Increase: Operating expenses increased to 28.9% of revenue, 150 basis points higher than last year, primarily due to higher employment and advertising costs.
Inventory Concerns Rising: Inventory levels rose by 3.8% year-over-year, raising concerns about potential overstock as the company prepares for the holiday season.
Earnings call transcript: Williams-Sonoma Q3 2024 shows resilience amid challenges
WSM.N
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