11:46 AM EDT, 08/19/2024 (MT Newswires) -- Williams-Sonoma ( WSM ) is "navigating" the challenging economic backdrop, but softer-than-expected demand and a heightened promotional environment remain as challenges to its outlook, Wedbush Securities said in a Monday note.

The company is set to release its Q2 results on Aug. 22 and Wedbush said it remains "constructive" on Williams-Sonoma ( WSM ) into the quarter's earnings.

"While some investors expect a material miss and guide down, we see limited downside to the quarter and the full-year outlook," the investment firm said. According to Wedbush, Williams-Sonoma ( WSM ) presents "compelling" products and has proved "adept" in managing its margins.

The company's West Elm and Pottery Barn brands grew in the first two months of the quarter, but saw a "steep deceleration" in July traffic, Wedbush added. Wedbush also noted that it remains positive on the brands' product improvements and said it expects these to help drive the company's market share gains into 2025.

Wedbush Securities has an outperform rating and $175 price target on Williams-Sonoma ( WSM ).

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