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WILLIAMS-SONOMA INCWW

WILLIAMS-SONOMA INC

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Williams-Sonoma, Inc. ($WSM) Reports First Quarter 2024 ResultsWilliams-Sonoma, Inc. ( NYSE:WSM ) announced its first quarter 2024 results, showing a comparable brand revenue of -4.9% and an operating margin of 19.5%. The company's President and CEO, Laura Alber, expressed satisfaction with the results, citing improved top-line trends and continued profitability. The company's gross margin increased by 690bps compared to the LY GAAP basis, driven by higher merchandise margins and supply chain efficiencies. Occupancy costs increased by -3.2% to the LY GAAP basis. The company's SG&A rate increased by 28.8% to +170bps due to higher advertising spend and incentive compensation. Operating income reached $324 million with an operating margin of 19.5%, and diluted EPS was $4.07 per share. The company maintained a strong liquidity position of $1.3 billion in cash and operating cash flow of $227 million, enabling it to deliver returns to stockholders of $107 million through dividends and stock repurchases. The company over-recognized freight expense in fiscal years 2021, 2022, and 2023 for a cumulative amount of $49 million. The Condensed Consolidated Financial Statements for the thirteen weeks ended April 28, 2024, include an out-of-period adjustment of $49 million to reduce the cost of goods sold and accounts payable. The company is reiterating its guidance of annual net revenue growth in the range of -3% to +3% with comps in the range of -4.5% to +1.5% in fiscal 2024. The company is raising its guidance on its operating margin for fiscal 2024, expecting an operating margin between 17.6% to 18.0%, including the impact of the out-of-period adjustment of 60bps. Without this adjustment, the company expects an operating margin between 17.0% to 17.4% in fiscal 2024. Fiscal 2024 is a 53-week year, with financial statements prepared on a 53-week basis in fiscal 2024 and a 52-week basis in fiscal 2023. The additional week in fiscal 2024 is expected to contribute 150bps to net revenue growth and 10bps to operating margin. Over the long term, the company continues to expect mid-to-high single-digit annual net revenue growth with an operating margin in the mid-to-high teens. Technical Outlook Williams-Sonoma stock ( NYSE:WSM ) is up 23% in Wednesday's Pre-market trading previously closing with a Relative Strength Index (RSI) of 60.37. The stock has formed a mini double-shoulder top pattern.
NLong
by DEXWireNews
Williams-Sonoma, Inc. Announces 26% Quarterly Dividend IncreaseWilliams-Sonoma, Inc. (NYSE: NYSE:WSM ) has announced significant moves aimed at enhancing shareholder value, including a substantial increase in its quarterly dividend and the authorization of a new $1 billion stock repurchase program. These strategic decisions underscore the company's confidence in its financial strength and commitment to delivering returns to its shareholders. Boosting Shareholder Returns: Williams-Sonoma's ( NYSE:WSM ) Board of Directors has approved a remarkable 26% increase in the company's quarterly cash dividend, now set at $1.13 per common share. This dividend hike reflects the company's robust performance and its dedication to rewarding shareholders. Additionally, the announcement of a new $1 billion stock repurchase authorization further reinforces Williams-Sonoma's commitment to maximizing shareholder value. Management's Perspective: Laura Alber, President and Chief Executive Officer of Williams-Sonoma, expressed pride in the company's achievements and its ability to bolster shareholder returns. She highlighted the company's strong finish in 2023, which paved the way for these strategic moves aimed at delivering long-term value. Jeff Howie, Chief Financial Officer, echoed this sentiment, emphasizing Williams-Sonoma's consistent profitability and strong cash flows, which have enabled the company to provide significant returns to its shareholders over the years. Strategic Utilization of Capital: The new stock repurchase authorization, effective immediately, provides Williams-Sonoma ( NYSE:WSM ) with additional flexibility to deploy capital efficiently. The program allows for the repurchase of the company's common stock through various channels, including open market transactions and privately negotiated deals. Management will assess market conditions and other factors to determine the timing and volume of share repurchases, ensuring optimal utilization of available funds. Long-Term Outlook: Williams-Sonoma's ( NYSE:WSM ) proactive steps to enhance shareholder returns underscore its confidence in the business's prospects and its ability to generate sustainable growth. By aligning its capital allocation strategy with shareholder interests, the company aims to drive long-term value creation. Technical Outlook NYSE:WSM is currently in a bullish trend with the stock up by 17% and a Relative Strength Index (RSI) of 80.92. Further concurring with the bullish Trend, NYSE:WSM is trading above its 200-day Moving Average (MA).
NLong
by DEXWireNews
WSM LongDespite the recent poor environment, WSM held onto its 13.5% earnings gain before rocketing off Monday morning on news that a private equity firm has taken a 5% stake in the company. Saw the news after the fact... what I did see was a relatively strong stock breaking out of a narrow consolidation at the top of a deep bottoming base on massive volume. It ended up trading its average weekly volume in one day & the most daily volume since August 2021 AND closed very close to its high on the day. I'd normally like to give the stock more wiggle room after a big move like this, but the poor environment dictates that I move my stop up fast. I initially placed it slightly below the low of the day and was going to manually close the trade if the strong move faded into Monday afternoon, but it didn't and now I've slid it up just below breakeven with multiple key areas to protect it ($150 round #, High-Volume Support level around $151.25, and the anchored VWAP from Monday's open).
NLong
by apaqu
$WSM Breakout on Volume!NYSE:WSM broke out of this consolidation area this morning on big volume. With just over an hour into the trading day it's traded about 1.9mm shares and it's 10 day average is 1.1mm shares. At this run rate it should trade 8 - 9mm shares before the day is done (TBD). I took a position and placed my stop just under the area of previous resistance. Let's see what happens. Ideas, not investing / trading advice. Comments always welcome. Thanks for looking.
NLong
by jaxdog
2
History repeating itself for WSM?WSM is in a similar position as it was in beginning Feb 2023. Stock fell from the same level (high of approx. 145) to a low of about 125. Unlike in Feb 2023 when the stock bounced to 130 before falling again, this time, it has again reached the high of 145. A cup and handle formation along with a bullish pennant seem bullish. However, the neckline of the large W formation hasn't been clearly broken. If WSM breaks it with increasing volume, upward movement likely to continue. However, if the stock loses steam at this level, it is likely to meet the fate it met in Feb 2023. In Feb 2023, overall market was going down. This time, it's going up. Squeeze Momentum has just turned green showing bullish move ahead. Scenario will be clearer next week.
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by RS3175
Ascending TriangleSome would measure the ide end of the triangle and project it from the top or bottom lines. Top line is virtually flat in an ascending triangle. The bottom line slopes up making higher lows. No recommendation/the top line is easier to project in this triangle as it is flat and targets are guesstimated from the break up level. The bottom lie is a bit more difficult as it slopes. We just do the best we can and give it a shot. Life goes on whether we are right or wrong (o:
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by lauralea
FlagEarnings miss, not by much but it is what it is. The pole is Down. This can break up or down and is neutral until broken. A flag is a type of continuation pattern formed when there is a large movement in a security, known as the flagpole, followed by a consolidation period with converging trend lines. This would be a Bear Pennant as the pole is Down, but until the support line is broken it is neutral. The Flag can sometimes form at the half way mark of the move but not always (30% of the time). This pattern usually tilts against the prevailing trend. No recommendation/Short interest is around 16%.
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by lauralea
Bearish WEarnings beat and I am not sure of guidance. It seems that WSM was doomed no matter what they reported. Price was above the bands set on an 80 DMA. Not anymore. Crooked W and the last leg terminated at just above the 1.113. But it is an ugly and long top wick that pierced the 1.113. Almost a text book Alternate Bat. The "regular" bat terminates at the .886. No recommendation. Short interest is approximately 18.47% depending on where you look with 9.3 days to cover. WSM seems to be highly shorted most of the time. Not sure why but for quite a while short has been over 10% which is creeping up on the high side for many.
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by lauralea
2
Williams Sonoma USA Sun Storm Investment Trading Desk & NexGen Wealth Management Service Present's: SSITD & NexGen Portfolio of the Week Series Focus: Worldwide By Sun Storm Investment Research & NexGen Wealth Management Service A Profit & Solutions Strategy & Research Trading | Investment | Stocks | ETF | Mutual Funds | Crypto | Bonds | Options | Dividend | Futures | USA | Canada | UK | Germany | France | Italy | Rest of Europe | Mexico | India Disclaimer: Sun Storm Investment and NexGen are not registered financial advisors, so please do your own research before trading & investing anything. This is information is for only research purposes not for actual trading & investing decision. #debadipb #profitsolutions
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by Sunstorminvest
$WMS - OVERSOLD BEFORE EARNINGSWith remote work on the increase, people are upgrading their home furniture and living conditions more than ever before. A company like Williams-Sonoma will feel the benefit of this changing trend in living styles. Increased demand should allow furniture retailers to counter-act rising material costs by raising prices. Adding to this point, the housing market has remained strong. People need to buy furniture more than ever. WMS earnings are released Wednesday, March 16th after the bell. Quote from Pragya Pandey's Stock News article below: "WSM is an omnichannel specialty retailer of multiple products for the home. It also supplies cooking, dining, and entertaining products such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor furniture, and a library of cookbooks under the Williams Sonoma brand, along with home furnishings and decorative accessories under the Williams Sonoma Home brand; and furniture, bedding, lighting, rugs, table essentials, and decorative accessories under the Pottery Barn brand. Last month, Pottery Barn Kids and Pottery Barn Teen, members of WSM, announced new collections with the famous resort wear brand Lilly Pulitzer. The ‘Lilly Pulitzer x Pottery Barn Kids’ and ‘Lilly Pulitzer x Pottery Barn Teen’ collections launched new product categories to the partnership, including décor, textiles, sleepwear, backpacks, and water bottles in Lilly Pulitzer’s signature prints. Jennifer Kellor, President, Pottery Barn Kids, and Pottery Barn Teen, stated that “Our collaboration with Lilly Pulitzer is the result of coming together as brands who value incredible design with exceptional quality,” Also, in January, WSM announced its collaboration with Black Artists + Designers Guild (BADG), a global organization committed to developing a more equitable and overall creative culture through the improvement of independent Black makers. The new collaboration between Pottery and Barn and BADG comprises products designed for entertaining, hosting, and gathering."
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by jaykenneyTRT
Option Strategies During Earnings Season For short term traders, the volatility and unpredictable reaction to an earnings release during the reporting session often means potentially wide swings in profits or losses. On this basis, one may be hesitant in holding an ultra short term/short term position through an announcement. In two of my most recent offshore ideas, Salesforce.com and Williams-Sonoma, I suggested traders consider taking profit before earnings are released. In both cases, the stocks rallied on the back earnings, with Saleforce.com up from my level of $238 to today's high of $275 while WSM rallied to today's high of $204 from $162.77. On this basis, traders could consider using 'Options' as part of a broader trading strategy. From the basic 'call' and 'put' option to the possibly more complex strategies such as 'straddles' and 'iron condors', we have the expertise and tools to help you not only profit but also manage risk. For more info and deeper discussion on how this can be achieved, get in touch today.
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by LD_Perspectives