Jefferies Remains Sidelined on Williams-Sonoma (WSM) Following 1Q

Jefferies maintained a Hold rating and $57.00 price target on Williams-Sonoma (NYSE: WSM) following the company's 1Q earnings report. Despite a hyper competitive and promotional environment, WSM is staying focused on distinguishing itself through merchandising, sourcing at a lower cost, improving inventory management and keeping SG&A down.

Analyst Daniel Binder commented, "Q2 EPS reflected better sales and SG&A, which offset weakness in GM%. Considering LY’s port disruption comp sales were probably closer to 1.6-2.1%, which is still better than Q4. The Street is at the upper end of Q2 guidance and we have seen some slowdown in government data for the sector so we continue to model a comp deceleration in Q2. The industry remains promotional but mgmt. indicated merchandise margin was only down slightly."

For an analyst ratings summary and ratings history on Williams-Sonoma click here. For more ratings news on Williams-Sonoma click here.

Shares of Williams-Sonoma closed at $52.10 yesterday.

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