- The shares of Williams-Sonoma, Inc. (NYSE: WSM) have received a $165 price target from Telsey. These are the details.
The shares of Williams-Sonoma, Inc. (NYSE: WSM) have received a $165 price target from Telsey. And Telsey analyst Cristina Fernandez maintains an “Outperform” rating on the shares.
Fernandez adjusted the rating after previewing the first-quarter results.
“(Williams-Sonoma) has declined ~25% since its 4Q21 report on March 16, due to fears of slowing demand for home furnishings goods, which were augmented this week by commentary from Target/Walmart that sales for the category slowed beginning in March. In addition, the S&P 500 Index has declined 17% YTD, which impacts the affluent consumer Williams-Sonoma serves,” wrote Fernandez in a research note. “Despite that muted backdrop, we expect a good 1Q22 result, more inline with what we saw from peers Arhaus and Ethan Allen, driven by a number of factors: 1) Williams-Sonoma had seen good demand through mid-March, and had a sizable backlog of furniture orders to convert to sales; 2) it has a rapidly growing B2B channel, which added ~6% to comparable brand sales in 2021; 3) it is lapping a lower benefit from government stimulus than mass retailers given a more affluent consumer; and 4) promotions remained low through the quarter, aiding the gross margin.”
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