Williams-Sonoma, Inc. [NYSE: WSM] spiked incredibly last Friday following the company’s earnings conference call or other otherwise referred to as presentation. The discussion was based on the results and guidance of the non-GAAP measures. The company did have a great start in 2019 with a comp revenue growth of 3.5% in addition to an operating margin expansion of 70 basis points as well as EPS growth of 21%. The customer growth, acquisition and engagement has continued to grow due to the delivered compelling and differentiated experiences. The President and Chief Executive Officer Luara Alber:
“We also reached a significant milestone for our company as we were named, for the first time, to the Fortune 500 largest companies in the United States. This accomplishment speaks to the hard work and dedication of all of our associates, the ongoing support of our loyal customers and the power of our highly differentiated platform in driving long-term profitable growth.”
Most investors would like to know the attractiveness of certain stocks on the market like Williams-Sonoma, Inc especially following the release of the financial report. To do so, investors must put into perspective the expected future cash flows, at the same time, discounting them to their present value.
According to Alber, the president of WSM via the conference call that the strong start in the first quarter of the year is a good indicator for growth in the second quarter of 2019. In turn, the company decided to lift the full year estimated price per share (EPS) guidance by $0.05. The is mean to blow out the momentum experienced in the business and the confidence WSM is getting from the growth engines. The growth in the current quarter is helping to speed up growth in the business and improve the profitability of the services. While referring to the brand initiatives Alber noted that:
“Our cross-brand initiatives continue to build as an important source of revenue growth and customer acquisition. Our cross-brand customer spend on average 4x more than single-brand customers, but they currently account for only 30% of our total customer base. This gives us runway to drive incremental revenues as we continue to unlock the power of our unique, multi-brand, multi-channel platform.”
The President and CEO said before concluding his part of the conference call:
“As we look to the balance of the year, we believe we are uniquely positioned to capture the significant opportunities we see in the home furnishings industry. We’ll continue to build on our strong momentum to achieve our goal of maximizing growth and drive profitability across our portfolio of brands.”
According to the technicals, WSM previously closed the trading at $51.59. The shares opened the trading at $57.92 and stayed in an intra-day range between $56.11 – $59.64. In terms of the yearly range, its 52-week range is between $45.01 – $73.99. There were 10,844,185 traded on Friday with an average share volume of 1,841,958. Williams-Sonoma has a market cap of $4.61 billion and an EPS (TTM) of $4.19. The next earnings date has been slotted for August 20, 2019 – August 26, 2019. The stock has a forward dividend & yield 1.92 (3.36%).