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Williams-Sonoma (WSM) Queued for Q4 Earnings: What to Expect

Williams-Sonoma, Inc. WSM is scheduled to report fourth-quarter fiscal 2021 results on Mar 16, after the closing bell.

In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 6.8% and 2.9%, respectively. On a year-over-year basis, earnings and revenues of this multi-channel specialty retailer of premium quality home products improved 30% and 16%, respectively.

Markedly, Williams-Sonoma reported better-than-expected earnings in the last four quarters, with the average being 27.2%.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has decreased to $4.80 from $4.82 over the past 30 days. The estimated figure indicates an increase of 21.5% from $3.95 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $2.57 billion, suggesting 12% growth from the year-ago figure of $2.29 billion.

WilliamsSonoma, Inc. Price and EPS Surprise

WilliamsSonoma, Inc. price-eps-surprise | WilliamsSonoma, Inc. Quote

Factors to Note

Positive momentum in the U.S. housing market, brand strength, accelerating growth initiatives and higher e-commerce growth are anticipated to have benefited Williams-Sonoma’s fiscal fourth-quarter performance.

Although supply chain disruptions and rising raw material and labor costs are expected to have been pressing concerns, a resilient housing market scenario and solid repair & remodeling activities are expected to have benefited the company’s quarterly performance.

Importantly, accelerating online sales trends are expected to have meaningfully contributed to its top line in the to-be-reported quarter.

The multi-channel multi-brand platform, strong e-commerce growth, solid execution of strategic initiatives, digital leadership, product innovation, retail transformation and operational excellence across businesses are also expected to have provided some support to the top line. Also, cross-brand initiatives are likely to have positively contributed to consolidated comps to some extent.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for Williams-Sonoma this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -0.35%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Williams-Sonoma currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stock With Favorable Combination

Here’s a stock from the broader Retail-Wholesale sector that you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat for the to-be-reported quarter:

Designer Brands Inc. DBI currently has an Earnings ESP of +12.28% and a Zacks Rank #1. DBI is anticipated to register a top-line increase when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for DBI’s revenues is pegged at $842.9 million, indicating a rise of 38.3% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for DBI’s quarterly earnings is pegged at 14 cents per share, suggesting an improvement from a loss of 53 cents recorded in the year-ago quarter. DBI delivered an earnings surprise of 116%, on average, in the trailing four quarters.

Peer Releases

RH RH is expected to report higher earnings and revenues when it reports fourth-quarter fiscal 2021 results.

For the quarter to be reported, the Zacks Consensus Estimate for RH’s earnings of $5.61 per share indicates a 10.7% increase from $5.07 in the year-ago quarter. The consensus mark for revenues is pegged at $928.8 million, suggesting 14.3% growth from the year-ago figure of $812.6 million.

Ethan Allen Interiors Inc. ETD reported second-quarter fiscal 2022 results, wherein earnings and sales beat the respective consensus mark by 25% and 11.1%.

ETD’s quarterly sales increased 16.4%, gross margin rose 210 basis points and adjusted EPS of 95 cents grew 37.7% from the year-ago period.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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WilliamsSonoma, Inc. (WSM): Free Stock Analysis Report
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Ethan Allen Interiors Inc. (ETD): Free Stock Analysis Report
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