Why You Should Buy Williams-Sonoma (WSM) Stock Right Now
Zacks Investment Research | Mar 26, 2019 04:32AM ET
Williams-Sonoma, Inc. (NYSE:WSM) has been benefiting from e-commerce expansion and optimization of supply chain. Improved marketing techniques, West ELM & emerging businesses along with its focus on product innovation are driving growth.
Recently, this multi-channel specialty retailer of premium quality home products reported fourth-quarter fiscal 2018, wherein its earnings and revenues beat the Zacks Consensus Estimate by 6.6% and 2.2%, and grew 25% and 9.3% year over year, respectively.
Shares of Williams-Sonoma have gained 16.3% over the past three months compared with the the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
What Makes Williams-Sonoma a Solid Bet?
Focus on E-Commerce Expansion: Technological evolution is changing the dynamics of the retail industry and the e-commerce boom has hugely impacted retailers’ business model. Williams-Sonoma is one of the largest e-commerce retailers in the United States and has a history of driving market share gains, supported by strong e-commerce growth.
Its innovative efforts helped to drive e-commerce growth to an all-time high of 54.3% of the total revenues in fiscal 2018. Also, the company’s investment in merchandising of its brands, efficient catalog circulations and digital marketing boosted its e-commerce revenues. It saw revenue growth of 10.8% in its e-commerce channel in 2018, almost double the fiscal 2017 growth. With more than 54% of its business (as of fiscal 2018) conducted online, Williams-Sonoma is among the top 25 internet retailers in North America.
West Elm & Emerging Businesses Continue to Shine: West Elm continued its accelerated growth trajectory in fiscal 2018, which marked its ninth consecutive year of double-digit growth and another year of strong comps of 9.5%. Its emerging businesses, Rejuvenation and Mark and Graham, delivered double-digit comps growth of 17.4% in fiscal 2018.
Product Innovation: There is consistent demand for new products. Williams-Sonoma addresses this demand very well. It also collaborates with celebrated brands and designers to offer exclusive designs on home furnishings products. It believes that collaborations with designers and brands attract new customers, invent trends in home furnishing and widen the company’s social media reach.
Get The News You Want
VGM Score: Williams-Sonoma has a Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.