Nomura Securities Cuts Price Target on Williams-Sonoma (WSM) Following Disappointing 4Q
Nomura Securities maintained a Buy rating on Williams-Sonoma (NYSE: WSM), and cut the price target to $75.00 (from $88.00), following the company's 4Q earnings report. Williams-Sonoma reported a disappointing 4Q that Nomura sees as a function of a challenging environment, which has been reinforced by other players in the category. The company outlined several areas of strategic focus and investment in 2016, the most important of which is regionalizing the supply chain to improve customer experience.
Analyst Jessica Mace commented, "WSM reported adjusted 4Q15 EPS of $1.55, below our estimate and consensus. Comparable brand revenue increased 0.8%, slower than our recently revised estimate of 3.5%. Challenging 4Q results were largely due to softness in gifting trends, and have improved throughout the beginning of 1Q16. We expect 2016 to be an investment year for the company as it invests in the supply chain, ecommerce, and the retail fleet. In addition, we believe the company’s four key strategies (product leadership, inventory, marketing, and real estate) will improve its position to compete in the evolving retail environment going forward."
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Shares of Williams-Sonoma closed at $59.46 yesterday.