Williams-Sonoma Earnings: WSM Stock Falls 6% Despite Beating Q2 Estimates

Williams-Sonoma (NYSE:WSM) earnings for the kitchenware and furniture retailer’s second quarter of 2020 have WSM stock taking a beating after markets closed on Wednesday. That’s despite it reporting adjusted earnings per share of $1.80 on revenue of $1.49 billion. These are both better than Wall Street’s estimates of $1 per share and revenue of $1.47 billion.

Image of a Williams-Sonoma (WSM) location open for business

Source: designs by Jack / Shutterstock.com

Here’s what else is worth noting from the most recent Williams-Sonoma earnings report.

  • Adjusted per-share earnings are up 107% from 87 cents during the same time last year.
  • Revenue for the quarter comes in 8.8% higher than the $1.37 billion reported in Q2 2019.
  • Operating income of $185.36 million is a 115.1% increase year-over-year from $86.17 million.
  • The Williams-Sonoma earnings report also has net income coming in at $134.56 million.
  • That’s a 114.8% jump from its net income of $62.65 million in the same period of the year prior.

Laura Alber, president and CEO of Williams-Sonoma, said this about the earnings results.

“We delivered an exceptional second quarter with net comp growth of 10.5% and demand comp growth of almost 19%, operating margin expansion to nearly double that of last year, and record earnings growth of over 100%. E-commerce again drove our results growing 46% in the quarter, and our stores performed better-than-expected, improving throughout the quarter as we re-opened.”

Williams-Sonoma isn’t providing 2020 guidance right now due to the novel coronavirus. This has it following a trend with many other companies withholding outlooks during the pandemic.

WSM stock was down 6.1% after-hours Wednesday but closed out normal trading hours up 3.8%.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/08/williams-sonoma-earnings-hit-wsm-stock/.

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