I admit I have a personal bias. I love the merchandising in Williams-Sonoma (WSM) stores and believe it is the best in retail. Retail sales surveys and data indicate people are spending a good deal on fixing up their homes – from renovation to the purchase of pots and pans. Census Bureau data shows a more than 9% projected increase in home furnishing sales.
William- Sonoma will claim its fair share and probably more. Why? Walk the store and you see, every quarter, a bit more shelf space dedicated to everything in food and food preparation – from jars of sauces to three families of copper pots.
EPS growth has been in the double digits and is projected to be the same in 2014 even though the company sells at only a slightly greater multiple than the overall S&P 500.