12:38 PM EDT, 05/23/2024 (MT Newswires) -- Williams-Sonoma ( WSM ) is expected to see an upside to its operating margin and comparable guidance for the fiscal year 2024 after the company reported fiscal Q1 beat, Wedbush said in a note Thursday.

Williams-Sonoma ( WSM ) on Wednesday increased its fiscal 2024 operating margin guidance to what Wedbush considered as "conservative" at between 17% and 17.4%, without adjustments, compared with 16.5% to 16.8% previously.

The company's "margin guidance implies flattish operating margins for the balance of the year," Wedbush said. "Overall, while some investors see the updated guidance as proof that the company cannot continually expand margins, we continue to see upside to what we view as a conservative outlook," Wedbush said.

The investment firm said it expects the company to achieve at least the high end of its operating margin guidance for the full year and maintain this through 2025.

Meanwhile, Williams-Sonoma ( WSM ) maintained its fiscal 2024 comparable guidance ranging from a decline of 4.5% to growth of 1.5%.

"Encouraging top-line results at West Elm with strength in new products and a return to growth in the trade portion of [business-to-busines] lead us to see more upside than downside potential to the 2024 [comparable] outlook despite a less robust industry outlook," Wedbush said.

The investment firm reiterated its outperform rating on Williams-Sonoma ( WSM ) and its $350 price target.

Williams-Sonoma ( WSM ) shares were 2.3% higher in recent trading Thursday.

Price: 286.32, Change: +6.39, Percent Change: +2.28