Williams-Sonoma, Inc. (NYSE:WSM) is a leading retailer in the home furnishings industry, known for its high-quality products and strong brand presence. The company operates several well-known brands, including Pottery Barn, West Elm, and its namesake Williams-Sonoma. As a key player in the Zacks Retail - Home Furnishings industry, Williams-Sonoma competes with other major retailers like Bed Bath & Beyond and Crate & Barrel.
Williams-Sonoma is set to release its quarterly earnings on March 19, 2025, before the market opens. Analysts have estimated the earnings per share (EPS) to be $2.91, with projected revenue of approximately $2.35 billion. This represents a significant increase from the previous year's EPS of $2.72 and revenue of $2.28 billion, as highlighted by Benzinga. The company's focus on operational efficiency and strategic expansion is expected to contribute to these positive results.
In the third quarter of fiscal 2024, Williams-Sonoma reported earnings that exceeded expectations, with an EPS of $1.96, surpassing estimates by 11.4%. Despite a 2.9% year-over-year revenue decline to $1.80 billion, the company outperformed industry trends. The operating margin improved by 80 basis points to 17.8%, driven by supply chain efficiencies and effective cost management. The B2B segment also experienced growth, reaching new heights.
Williams-Sonoma has consistently outperformed earnings expectations, with an average surprise of 8.73% over the last two quarters. In the most recent quarter, the company reported an EPS of $1.96, exceeding the Zacks Consensus Estimate of $1.76. This track record of earnings surprises has led to upward trends in recent estimates, suggesting optimism for the upcoming earnings report.
The company's financial metrics indicate a strong position, with a price-to-earnings (P/E) ratio of approximately 19.72 and a price-to-sales ratio of about 2.82. The enterprise value to sales ratio is roughly 2.88, while the enterprise value to operating cash flow ratio is around 15.48. Williams-Sonoma's debt-to-equity ratio is about 0.69, indicating moderate debt levels, and a current ratio of approximately 1.35 suggests good liquidity to cover short-term liabilities.
