Williams-Sonoma shares surge after the company posted its third-quarter earnings report on Thursday. Yahoo Finance's Brian Sozzi shares the details.
MYLES UDLAND: Brian Sozzi, you heard Ines talking there about what we've seen from a couple of retailers. And a company out last night with its results, and another huge quarter for them, is Williams-Sonoma. This is a stock that was at 30 bucks. I think $35 was the low back in March.
It's now trading closer to $110. And it's really been a success story for them for some time at the West Elm brand. But I mean, the results across all three of their brands-- Pottery Barn, West Elm, and Williams-Sonoma-- just on a tear this year.
BRIAN SOZZI: Ah, Myles, you can't be surprised. I see your background. It looks very Williams-Sonomy, West Elmish. But yes, this quarter was really another mind-blowing one for this company.
Same-store sales up 24%. You have Pottery Barn up 24.1%, West Elm up 21.8%, Williams-Sonoma up 30.4%. Even the teens business was up close to 24% in terms of sales.
The interesting thing here, Myles, is you are seeing new households, new customers, to Williams-Sonoma up 30% year to date. Take a step back. Where is that coming from?
All this migration from urban areas into suburbia. People need furniture. And they don't necessarily appear to be getting the broken down stuff that you can get at IKEA. They look to be paying up and getting real stuff, like you with that great furniture in the background.
MYLES UDLAND: Oh, look, Sozzi, we've had a couple-- first of all, I am doing this show on a tiny West Elm desk that probably isn't the right ergonomic height. The chair I'm sitting in, also from West Elm, it's OK. If I had to sit in it for eight hours every day, maybe it wouldn't be my favorite thing. But I do get to migrate around the spacious 400 feet we have here throughout the day.
But yeah, look, I mean, I think you have all those catalysts in place for all of these brands. And the question-- and you look at the stock, you look at the way investors have thought about it, the question that I would have for West Elm-- and RH is another company in this position-- is, is this a step change in the company's trajectory?
You know, does the customer who bought a home and is really excited to trick it out with a bunch of All-Clad pans, how often are they coming back for those kinds of things? Or are they saying, I'll fill in the gaps around the edges at Home Goods, which I think is sort of where the longer-term trajectory of homeownership takes you. It takes you down the stack.
Williams-Sonoma's very exciting the first time. You can't go to Williams-Sonoma every quarter and buy $500 worth of stuff you don't exactly need.
BRIAN SOZZI: Yeah, well, the bulls who have piled into Williams-Sonoma are sure hoping this is sustainable. I do want to know, too-- we're not just seeing it at Home Depot, Williams-Sonoma. We've also seen a big surge this month-- close to-- a little more over 20% in lumber prices.
Lumber prices have been on fire. Existing-home sales have been on fire. You wrote about that in the "Morning Brief" newsletter this morning. The whole home space is on fire.
MYLES UDLAND: Yeah, it is. And it's really crazy. You talk to some folks who are actually selling homes, and they will tell you some stories about the last couple of months.