Zacks Investment Research Downgrades Williams-Sonoma, Inc. (WSM) to Sell
Williams-Sonoma, Inc. (NYSE:WSM) was downgraded by Zacks Investment Research from a “buy” rating to a “sell” rating in a note issued to investors on Wednesday.
According to Zacks, “Williams-Sonoma has been reporting soft comparable brand revenues for sometime now due to soft retail environment and cautious consumer spending pattern. Pottery Barn, the company’s largest brand, has struggled in fiscal 2016 and early in 2017. Although the company has been working hard on the repositioning of the brand and has developed initiatives to implement across all areas of the business from product to value to marketing, we wait for better visibility. Moreover, continued e-commerce and supply chain investments weigh on operating margins. Meanwhile, although shares of Williams-Sonoma have outperformed its industry so far this year, the trend in current-year earnings estimate revisions is not satisfactory as it remained stable over the past 30 days.”
A number of other equities analysts also recently issued reports on the company. Robert W. Baird set a $48.00 target price on Williams-Sonoma and gave the stock a “hold” rating in a research note on Tuesday, October 31st. SunTrust Banks, Inc. reissued a “buy” rating and set a $62.00 target price on shares of Williams-Sonoma in a research note on Tuesday, October 17th. Stifel Nicolaus began coverage on Williams-Sonoma in a research note on Thursday, October 12th. They set a “hold” rating and a $54.00 target price for the company. Credit Suisse Group downgraded Williams-Sonoma from a “neutral” rating to an “underperform” rating and set a $44.00 target price for the company. in a research note on Thursday, October 12th. Finally, TheStreet raised Williams-Sonoma from a “c+” rating to a “b-” rating in a research note on Monday, October 9th. Six research analysts have rated the stock with a sell rating, seventeen have assigned a hold rating and six have assigned a buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus target price of $52.18.
Williams-Sonoma (NYSE:WSM) last posted its quarterly earnings data on Wednesday, August 23rd. The specialty retailer reported $0.61 earnings per share for the quarter, topping analysts’ consensus estimates of $0.59 by $0.02. The company had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.20 billion. Williams-Sonoma had a return on equity of 25.43% and a net margin of 5.96%. The firm’s revenue for the quarter was up 3.7% on a year-over-year basis. During the same period last year, the firm earned $0.58 EPS. research analysts predict that Williams-Sonoma will post 3.59 EPS for the current fiscal year.
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Institutional investors and hedge funds have recently modified their holdings of the business. Verition Fund Management LLC acquired a new position in shares of Williams-Sonoma during the second quarter worth about $395,000. Century Capital Management LLC increased its holdings in Williams-Sonoma by 2.0% in the fourth quarter. Century Capital Management LLC now owns 206,962 shares of the specialty retailer’s stock valued at $12,089,000 after buying an additional 4,024 shares during the last quarter. Tweedy Browne Co. LLC bought a new stake in Williams-Sonoma in the fourth quarter valued at about $12,010,000. Honeywell International Inc. bought a new stake in Williams-Sonoma in the fourth quarter valued at about $18,691,000. Finally, Alpha Windward LLC increased its holdings in Williams-Sonoma by 23,087.0% in the third quarter. Alpha Windward LLC now owns 10,666 shares of the specialty retailer’s stock valued at $532,000 after buying an additional 10,620 shares during the last quarter. Institutional investors own 98.93% of the company’s stock.
Williams-Sonoma Company Profile
Williams-Sonoma, Inc is a multi-channel specialty retailer of products for the home. The Company operates retail stores in the United States, Canada, Puerto Rico, Australia and the United Kingdom. It operates through two segments: e-commerce and retail. The e-commerce segment has various merchandising strategies, such as Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, PBteen, Williams-Sonoma Home, Rejuvenation and Mark and Graham, which sell its products through the Company’s e-commerce Websites and direct-mail catalogs.
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