Williams-Sonoma to Post Q1 Earnings: What's in Store for the Stock?

Williams-Sonoma, Inc. WSM is scheduled to release first-quarter fiscal 2025 results on May 22, before market open.In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 12.7% and increased 20.6% year over year. Revenues of this multi-channel specialty retailer of premium-quality home products beat the consensus mark by 5.4% and increased 8% year over year.Williams-Sonoma reported better-than-expected earnings in each of the last four quarters, the average surprise being 19.2%.How Are Estimates Placed for WSM’s Q1?For the quarter to be reported, the Zacks Consensus Estimate for earnings per share (EPS) has remained unchanged at $1.76 over the past 30 days. The estimated figure indicates a decrease of 13.7% from $2.04 per share reported in the year-ago quarter.Williams-Sonoma, Inc. Price and EPS Surprise Williams-Sonoma, Inc. price-eps-surprise | Williams-Sonoma, Inc. QuoteThe consensus mark for revenues is pegged at $1.67 billion, indicating a slight increase of 0.5% from the year-ago figure of $1.76 billion.Factors That Might Have Shaped Up WSM’s Q1 PerformanceWilliams-Sonoma’s top line is expected to have increased year over year in the fiscal first quarter, driven by the multi-channel, multi-brand platform, strong e-commerce growth, solid execution of strategic initiatives, digital leadership and product innovation. Also, international expansion, higher promotions and new collaborations are likely to have supported growth in the quarter to be reported.However, the challenging sales environment for home furnishings, owing to the continued weakness in the U.S. housing market, is likely to hurt its fiscal first-quarter results. Also, fluctuations in mortgage rates and softening demand after the April tariff announcements are likely to have added pressure to consumer spending.Our model predicts fiscal first-quarter revenues in the Pottery Barn brand (which represented 39.4% of fiscal 2024 sales) to be $658.9 million, indicating a fall of 2.7% from the prior-year quarter figure. Revenues of the West Elm brand (which represented 23.9% of fiscal 2024 sales) are projected at $438.9 million, up 2% from the prior-year quarter level.We expect the namesake brand’s (which represented 16.9% of fiscal 2024 sales) revenues to be $240.2 million, indicating a slight increase of 0.8% year over year. Revenues from Pottery Barn Kids and Teen brand (which represented 14.4% of fiscal 2024 sales) are projected to be $228.5 million, up 3% year over year.From the margin perspective, lingering inflationary pressures, along with higher employment and general expenses, are likely to have weighed on its to-be-reported quarter’s bottom-line performance.We expect Pottery Barn Kids and Teen’s comps growth to be at 3%. The metric witnessed a 2.8% increase a year ago and a rise of 3.5% in the previously reported quarter.Our model predicts Pottery Barn’s comps to decline 2.5% year over year. The same declined 10.8% a year ago. In the fourth quarter of fiscal 2024, comps were negative 0.5%.Our model predicts West Elm’s comps to increase 2%. The metric witnessed a 4.1% decline a year ago, but a 4.2% increase in the last reported quarter.We expect the namesake brand’s comps to be up 1%. The metric witnessed a 0.9% increase a year ago and a rise of 5.7% in the previously reported quarter.What the Zacks Model Says for WSMOur proven model does not conclusively predict an earnings beat for Williams-Sonoma this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.WSM’s Earnings ESP: Williams-Sonoma has an Earnings ESP of -1.14%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.WSM’s Zacks Rank: Williams-Sonoma currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.Recent Retail-Wholesale ReleasesDomino's Pizza, Inc. DPZ reported first-quarter fiscal 2025 results with earnings beating the Zacks Consensus Estimate but revenues missing the same. The company reported adjusted EPS of $4.33, up from $3.58 reported in the year-ago quarter. Revenues of $1.11 billion increased 2.5% on a year-over-year basis.Domino's reported benefits from the Hungry for MORE strategy during the quarter, registering growth in market share across the U.S. and international segments. DPZ continued to manage controllable factors well despite a tough global environment. The strategy supported an increase in sales, store openings and profits. These factors are important for long-term value creation for franchisees and shareholders.Brinker International, Inc. EAT reported third-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The company reported adjusted EPS of $2.66, up from $1.24 reported in the year-ago quarter. Revenues of $1.43 billion increased 27.2% on a year-over-year basis.Brinker’s quarterly performance benefited from strong fundamentals, leading to better guest experience and steady business growth. The ongoing increase in traffic continues to drive the company’s performance.YUM! Brands, Inc. YUM posted first-quarter 2025 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues missing the same. The company posted adjusted EPS of $1.30, up from $1.15 reported in the year-ago quarter. Revenues of $1.79 billion increased 12% on a year-over-year basis.The company’s performance reflects solid contributions from the KFC and Taco Bell divisions. On the digital front, the company reported meaningful progress, with digital sales nearing $9 billion and accounting for 55% of total sales. Franchisee feedback on Yum!’s proprietary digital platform, Byte by Yum!, remained positive, reinforcing the brand’s strategic push toward tech-driven growth.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Yum! Brands, Inc. (YUM): Free Stock Analysis Report Domino's Pizza Inc (DPZ): Free Stock Analysis Report Brinker International, Inc. (EAT): Free Stock Analysis Report Williams-Sonoma, Inc. (WSM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks