Williams-Sonoma Stock Outperforms Market Despite 481st Trading Volume Rank and Earnings Volatility

Williams-Sonoma (WSM) rose 0.33% on August 1, with a trading volume of $260 million, ranking 481st in the market. The company is set to report Q2 earnings on August 28, with analysts forecasting $1.78 per share, a 2.3% increase from the prior-year quarter. Despite a 4.5% post-Q1 earnings drop in May, WSM has exceeded profit estimates in four consecutive quarters. Over the past year, the stock gained 25.4%, outperforming the S&P 500 and Consumer Discretionary sector. Current analyst ratings lean moderately bullish, with 18 analysts assigning a “Moderate Buy” or higher, though 12 recommend a “Hold.” The stock trades above its $184.29 average price target.

Recent performance highlights include a 4.2% year-over-year revenue increase in Q1, driven by improved comparable store sales, and an adjusted EPS of $1.85, beating estimates by 5.1%. However, challenges persist, such as store closures averaging 2.1% annual declines over two years and a 4.7% annual drop in same-store sales. Free cash flow margins also fell by 5.3 percentage points in the last year, raising concerns about cash profitability if expansion efforts resume.

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