Street View: Williams-Sonoma's strong results tempered by margin forecast
20/03/2025 18:23
** Pottery Barn parent Williams-Sonoma WSM.N warned on Wednesday that Trump administration's tariffs on China, Canada and Mexico, as well as on steel and aluminum, would weigh on its fiscal 2025 margin.
** Five of 25 brokerages rate the stock "buy" or higher, 17 "hold" and 3 "sell"; their median PT is $187
BRAND STRENGTH, MOMENTUM AMID TARIFF IMPACT
** J.P. Morgan ("neutral"; PT: $168) says co's fourth-quarter results continue the trend of hardgoods retailers seeing strong quarters as factors such as good holiday mood for consumers and housing strength on West Coast help the likes of RH and WSM
** TD Cowen ("buy"; PT: $130) says co's margin guide and implied EPS guide sent shares significantly lower at market open and that the margin guide seems conservative given prior significant multi-year momentum
** Wedbush ("neutral"; PT: $170) says WSM's revenue outlook does not look conservative given the waning consumer confidence and potential pullback in big-ticket spending
** Telsey Advisory Group ("outperform"; PT: $220) says Williams-Sonoma's fourth-quarter earnings demonstrated the strength of its brands and margin forecast was slightly below as impact of tariffs was considered by co
(Reporting by Aamir Sohail in Bengaluru)
((Aamir.Sohail@thomsonreuters.com))