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Williams-Sonoma Inc WSM

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Stock XNYS Rating as of
$293.22 +4.89 (1.70%)
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Company Report

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Williams-Sonoma Defends Profitability Even in Softer Demand Environment

Jaime M Katz

Williams-Sonoma has carved out a modest position in the $750 billion global home category and the $80 billion US business-to-business industry, according to the firm. It has historically launched most of its brands organically in underserved segments, which has supported some brand awareness, facilitating top- and bottom-line growth. Its ability to drive business relies on customer loyalty and smart marketing and merchandising and the firm has access to a lengthy history of customer analytics stemming from its catalog days. This should help Williams-Sonoma maintain its market share as it attempts to enter adjacent categories.

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Price vs Fair Value

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WSM is trading at a 574% premium.
Price
$288.33
Fair Value
$934.00
Uncertainty
High
1-Star Price
$948.80
5-Star Price
$791.80
Economic Moat
Mgpm
Capital Allocation
Ldstgfyvt

Bulls Say, Bears Say

Bulls

Less discretionary categories such as cookware and small appliances offer some resiliency amid macroeconomic cyclicality. Trade and contract B2B customers tend to offer a more steady source of revenue.

Bears

Supply chain remediation from prior port congestion and lower freight pricing could reverse, increasing expenses.

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Trading Information

Previous Close Price
$288.33
Day Range
$285.32–293.80
52-Week Range
$111.64–348.51
Bid/Ask
$291.00 / $295.00
Market Cap
$18.86 Bil
Volume/Avg
3.5 Mil / 1.2 Mil

Key Statistics

Price/Earnings (Normalized)
18.49
Price/Sales
2.49
Dividend Yield (Trailing)
1.22%
Dividend Yield (Forward)
1.44%
Total Yield
1.63%

Company Profile

With a retail and direct-to-consumer presence, Williams-Sonoma is a player in the $300 billion domestic home category and $450 billion international home market, focused on expanding its exposure in the B2B ($80 billion total addressable market), marketplace, and franchise areas. Namesake Williams-Sonoma (156 stores) offers high-end cooking essentials, while Pottery Barn (184) provides casual home accessories. Brand extensions include Pottery Barn Kids (45) and PBteen. West Elm (121) is an emerging concept for young professionals, and Rejuvenation (11) offers lighting and house parts. Williams-Sonoma also has a business-to-business team that supports projects that range from residential to large-scale commercial.
Sector
Consumer Cyclical
Industry
Specialty Retail
Stock Style Box
Mid Core
Total Number of Employees
19,300
Website
https://www.williams-sonomainc.com

Competitors

Valuation

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Metric
WSM
W
SHW
Price/Earnings (Normalized)
 18.49—28.30
Price/Book Value
 8.54—21.52
Price/Sales
 2.490.573.33
Price/Cash Flow
 11.7924.7920.55
Price/Earnings
WSM
W
SHW

Financial Strength

Metric
WSM
W
SHW
Quick Ratio
 0.800.630.40
Current Ratio
 1.550.780.78
Interest Coverage
 —−33.508.56
Quick Ratio
WSM
W
SHW

Profitability

Metric
WSM
W
SHW
Return on Assets (Normalized)
 23.23%−1.26%11.01%
Return on Equity (Normalized)
 61.26%—71.59%
Return on Invested Capital (Normalized)
 34.07%−2.10%17.88%
Return on Assets
WSM
W
SHW
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