Williams-Sonoma Q4: Retail Traders Remain Bullish Despite Disappointing Guidance

Jefferies lowered the company’s price target to $208 from $226 with a ‘Buy’ rating.

Shares of Williams-Sonoma dropped more than 3% on Wednesday after the company gave disappointing guidance despite a fourth-quarter earnings beat, with retail investors remaining optimistic.

Williams-Sonoma, whose brands include Pottery Barn, West Elm, and GreenRow, posted earnings per share of $3.28, beating estimates of $2.9. Revenue came in at $2.46 billion, above the $2.37 billion expected by analysts.

For fiscal 2025, Williams-Sonoma expects annual net revenues to see a decline of 1.5% to growth of 1.5%, and comparable sales to range from flat to 3% growth. Its operating margin is expected between 17.4% and 17.8%.

The guidance factored in the potential impact of tariffs, which received a nod from at least one Wall Street brokerage.

Jefferies lowered the firm's price target to $208 from $226 with a ‘Buy’ rating, The Fly reported, citing the firm’s factoring in tariff-related headwinds in the company's 2025 guidance and creating an EPS floor.

“With the majority of 2025 guidance at-risk in retail if tariffs stay, stick with the de-risked guide,” Jefferies reportedly said in its note.

On Stocktwits, the retail sentiment was extremely bullish, compared to bearish a day ago. Message volume was extremely high, with some watchers noting the company’s inclusion in the S&P 500.

One bullish watcher predicted a breakthrough to $172 for the stock.

Another watcher noted higher-than-usual volumes.

Williams Sonoma also announced a 16% increase in its quarterly dividend to $0.66 per share.

Williams-Sonoma is set to join four other companies in the S&P 500 index by the end of the month.

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