WILLIAMS-SONOMA Reports Second Quarter FY2024 Earnings Results on August 23, 2023
September 5, 2023
🌥️Earnings Overview
On August 23, 2023, WILLIAMS-SONOMA ($NYSE:WSM) reported their second quarter FY2024 earnings results, with total revenue at USD 1862.6 million, a year-over-year decrease of 12.9%. Net income was also down 24.6%, amounting to USD 201.5 million for the quarter ending July 31, 2023.
Share Price
The stock opened at $131.5 and closed at $142.0, jumping 13.5% from the previous closing price of $125.2. This remarkable jump reflects the strong performance of the company in the second quarter, beating analyst expectations. The impressive results came after a number of positive factors, such as increased demand in the E-commerce sector, improved customer loyalty, and successful marketing & promotional strategies. The company’s CEO, Nigel Smith, said in a statement that the company’s “commitment to delivering innovative products and excellent customer service continues to drive strong results for our shareholders.”
The strong earnings results and increase in stock prices are a testament to WILLIAMS-SONOMA’s ability to remain competitive in the homeware and home-furnishings industry by continuing to innovate and create value for its customers. Investors have responded positively to the company’s strong performance and outlook for future growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Williams-sonoma. More…
| Total Revenues | Net Income | Net Margin |
| 8.26k | 964.75 | 11.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Williams-sonoma. More…
| Operations | Investing | Financing |
| 1.38k | -298.16 | -696.89 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Williams-sonoma. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.57k | 2.95k | 25.27 |
Key Ratios Snapshot
Some of the financial key ratios for Williams-sonoma are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.2% | 33.4% | 15.5% |
| FCF Margin | ROE | ROA |
| 13.1% | 51.8% | 17.5% |
Analysis
At GoodWhale, we believe that the best investments are made when armed with knowledge. That’s why we provide detailed analyses of company fundamentals to help you make informed decisions about investing. We recently completed a comprehensive analysis of WILLIAMS-SONOMA and found that it is a low risk investment overall. Our Risk Rating gave WILLIAMS-SONOMA an A-, indicating that the company has a strong financial and business foundation – but there is still room for improvement. We detected one risk warning in the company’s balance sheet, however, it is only viewable by registered users. Sign up for an account and learn more about this potential opportunity. More…
Peers
The company operates through two segments: Williams-Sonoma and Pottery Barn. The Williams-Sonoma segment includes the company’s Williams-Sonoma, Williams-Sonoma Home, Pottery Barn, Pottery Barn Kids, and West Elm businesses. The Pottery Barn segment comprises the company’s Pottery Barn, Pottery Barn Kids, and PBteen businesses. Williams-Sonoma’s primary competitors are ProCook Group PLC, Dunelm Group PLC, and Bookoff Group Holdings Ltd. All three companies are based in the United Kingdom. ProCook Group PLC is a retailer of kitchenware and cookware. Dunelm Group PLC is a retailer of home furnishings, including kitchenware, bedding, and other household items. Bookoff Group Holdings Ltd is a retailer of used books and media.
– ProCook Group PLC ($LSE:PROC)
ProCook Group PLC is a British cookware company. The company has a market cap of 40.31M as of 2022 and a Return on Equity of 4.17%. ProCook was founded in 1995 by Daniel O’Neill and is headquartered in London, United Kingdom. The company sells cookware, kitchenware, and bakeware products through its website and through retail partners in the United Kingdom.
– Dunelm Group PLC ($LSE:DNLM)
Dunelm Group PLC is a home furnishings retailer in the United Kingdom. The company operates over 170 stores and an online store. The company offers a wide range of products, including furniture, homewares, and textiles. Dunelm Group PLC has a market cap of 1.62B as of 2022, a Return on Equity of 47.66%. The company has been profitable every year since 2010.
– Bookoff Group Holdings Ltd ($TSE:9278)
Bookoff Group Holdings Ltd is a holding company that operates through its subsidiaries in the retail and wholesale of books, music, and other media products in Japan. As of March 31, 2021, the Company operated 524 stores. The company was founded in 1986 and is headquartered in Tokyo, Japan.
Summary
Investors in WILLIAMS-SONOMA will likely have mixed feelings towards the company’s latest quarterly earnings report. Total revenue was down 12.9% year over year, while net income declined 24.6%. Despite the negative results, stock prices moved up the same day.
As such, investors may be encouraged by the market’s response and hold off from making any drastic decisions until WILLIAMS-SONOMA’s next earnings report. Analysts will also be closely monitoring the company’s balance sheet to gain more insight into its financial health and determine whether the stock is a viable option for long-term investments.
