Williams-Sonoma Stock Dips More Than Broader Market Amid Earnings Expectations

Williams-Sonoma's stock price fell 1.35% to $187.50, lagging the S&P 500's 0.63% decline. The company is set to report Q4 earnings, with expected EPS of $1.85, down 5.61% YoY, and revenue of $1.85 billion, up 2.51% YoY, according to a MarketBeat filing.

Williams-Sonoma, Inc. (NYSE: WSM) experienced a 1.35% decline in its stock price to $187.50, underperforming the S&P 500's 0.63% drop. The specialty retailer is poised to report its Q4 earnings, with analysts expecting earnings per share (EPS) of $1.85, a 5.61% year-over-year (YoY) decrease, and revenue of $1.85 billion, up 2.51% YoY, according to a MarketBeat filing.

The Zacks Rank system predicts a hold rating for WSM, with a forward price-to-earnings (P/E) ratio of 22.25 and a price-to-earnings growth (PEG) ratio of 3.07. These metrics suggest that while the company's earnings are expected to decline, the stock is not significantly overvalued compared to its growth prospects.

Institutional investors have been actively adjusting their stakes in Williams-Sonoma. Hamilton Point Investment Advisors LLC, for instance, reduced its holding by 34.2%, selling nearly 20,000 shares during the second quarter, MarketBeat reported. Meanwhile, other investors like Vanguard Group Inc. and Nuveen LLC have increased their stakes in the company, MarketBeat noted.

Williams-Sonoma's stock has shown resilience despite the recent decline, with a 12-month low of $125.33 and a 12-month high of $219.98. The company's latest quarterly earnings report indicated a net margin of 14.54% and a return on equity of 54.47%, demonstrating strong operational performance, MarketBeat reported.

The company also announced a quarterly dividend, set to be paid on November 21, 2025, with a dividend yield of 1.4%. This represents a 29.04% payout ratio, indicating that Williams-Sonoma is distributing a significant portion of its earnings to shareholders, MarketBeat reported.

Analysts have provided varying opinions on the stock. KeyCorp upgraded their rating to "overweight" with a price target of $230.00, while Citigroup maintained a "neutral" rating with a price target of $202.00. UBS Group set a target price of $200.00, and Evercore ISI increased their target to $210.00, MarketBeat reported.

Overall, Williams-Sonoma's recent stock performance reflects a mix of investor sentiment and earnings expectations. As the company prepares to report its Q4 earnings, investors will be closely watching for any signs of improvement or continued challenges.