Overview

* Williams-Sonoma ( WSM ) Q3 revenue slightly beats analyst expectations, with a 4% comp brand revenue growth

* Adjusted EPS for Q3 beats consensus, reflecting strong operational performance

* Company announced new $1 bln stock repurchase authorization, indicating confidence in future growth

Outlook

* Williams-Sonoma ( WSM ) raises fiscal 2025 operating margin guidance to 17.8% to 18.1%

* Company expects fiscal 2025 net revenue growth of 0.5% to 3.5%

* Williams-Sonoma ( WSM ) anticipates fiscal 2025 interest income of approximately $35 mln

Result Drivers

* COMPARABLE BRAND REVENUE - Q3 comparable brand revenue increased by 4%, with positive comps across all brands

* OPERATING MARGIN - Operating margin expanded to 17.0%, driven by higher merchandise margins and supply chain efficiencies

* LIQUIDITY AND RETURNS - Strong liquidity position enabled $347 mln in returns to stockholders through stock repurchases and dividends

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $1.88 $1.87

Revenue Beat* bln bln (16

Analysts

)

Q3 EPS Beat $1.96 $1.87

(19

Analysts

)

Q3 Net $241.59

Income mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 15 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the home furnishings retailers peer group is "buy"

* Wall Street's median 12-month price target for Williams-Sonoma Inc ( WSM ) is $208.50, about 13.3% above its November 18 closing price of $180.75

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)