U.S. markets closed

Williams-Sonoma (WSM) to Post Q1 Earnings: What's in Store?

Zacks Equity Research

Williams-Sonoma, Inc. WSM is scheduled to report first-quarter fiscal 2020 results on May 28, after the closing bell.

In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 3.9% and 1.5%, respectively. On a year-over-year basis, earnings and revenues of this multi-channel specialty retailer of premium quality home products grew 1.4% and 0.4%, respectively.

Markedly, Williams-Sonoma reported better-than-expected earnings in the last four quarters, with the average surprise being 7.5%.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has increased 600% to 14 cents over the past 30 days. However, the estimated figure indicates a decrease of 82.7% from 81 cents per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $1.10 billion, suggesting a 11.5% decline from the year-ago reported figure of $1.24 billion.

WilliamsSonoma, Inc. Price and EPS Surprise

Factors to Note

Williams-Sonoma’s sales and earnings are expected to be have declined in the fiscal first quarter. The global impact of the coronavirus pandemic resulted in the closure of many retail stores throughout the world. Temporary store closures in North America are expected to have impacted the company’s fiscal first-quarter performance.

While relentless competition, tariffs and tough comparisons are expected to have been pressing concerns, the multi-channel multi-brand platform, strong e-commerce growth, solid execution of strategic initiatives, digital leadership, product innovation, retail transformation and operational excellence across businesses are expected to have provided some support to the top line. Also, cross-brand initiatives and momentum of the West Elm brand are likely to have positively contributed to its consolidated comps to some extent.

Importantly, Williams-Sonoma’s online sales trends have accelerated, which more than offset the lost sales from closed stores. This is expected to have meaningfully contributed to its top line in the to-be-reported quarter.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Williams-Sonoma this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Williams-Sonoma, which shares space with RH RH in the Zacks Retail - Home Furnishings industry, currently carries a Zacks Rank #3 and has an Earnings ESP of +264.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Worth a Look

Here are some stocks in the Zacks Retail-Wholesale sector, which have the right combination of elements to beat estimates in their respective quarters to be reported.

Big Lots BIG presently has an Earnings ESP of +19.01% and a Zacks Rank #2.

Dollar General DG has an Earnings ESP of +6.69% and a Zacks Rank #2, at present.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>

Click to get this free report Big Lots, Inc. (BIG) : Free Stock Analysis Report Dollar General Corporation (DG) : Free Stock Analysis Report RH (RH) : Free Stock Analysis Report WilliamsSonoma, Inc. (WSM) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research