Goldman Sachs Stays Bearish on Williams-Sonoma (WSM) Post EPS As Stock Soars Ten Percent
Goldman Sachs analyst Kate McShane reiterated a Sell rating and $154.00 price target on Williams-Sonoma (NYSE: WSM)
The analyst comments "WSM reported 4Q23 EPS of $5.44, above GS/consensus (Refinitiv) at $4.93/$5.12, driven by a comp decline of -6.8% (above consensus of -9.3%) and a gross margin of 46.0% (above consensus of 44.5%). The company's sales of $2,279mn came in above consensus of $2,233mn. WSM introduced FY24 guidance to revenue growth in the range of -3% to +3%, with the midpoint above consensus at -1.3%, and comps in the range of -4.5% to +1.5%, with the midpoint slightly above consensus at -1.9%. The company expects an operating margin of 16.5-16.8%, with the midpoint above consensus at 16.1%. Additionally, the company reiterated long-term guidance of +MSD to +HSD annual net revenue growth, with an operating margin in the mid to high teens. WSM increased its share repurchase capacity to $1bn and raised its quarterly dividend by 26% to $1.13 per share. The stock is currently trading up ~10%. On today's call, we are interested in: the cadence of the comp in the quarter; trends by banner; supply chain and cost pressure; the company's outlook on promotions; QTD commentary; and additional color around FY24 guidance."
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Shares of Williams-Sonoma closed at $241.05 yesterday.