Williams-Sonoma Stock Hits All-Time High On Earnings Beat, Raised Outlook: Retail Sentiment Dips To Year-Low
By Stocktwits Inc | First Published Nov 21, 2024, 1:21 AM ISTUsers on Stocktwits appear to be bearish following the revised guidance, which now projects a larger revenue decline, with the improved operating margin forecast failing to lift sentiment.
Shares of Williams-Sonoma Inc. ($WSM) soared nearly 30% by mid-day Wednesday, reaching record highs after the company surpassed third-quarter earnings estimates.
The stock crossed its previous high of $174.26 from May 2024 to hit $181.42.
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The luxury homeware maker reported earnings of $1.96 per share beating estimates of $1.77, according to Stocktwits data.
Revenue came in at $1.8 billion, above the estimated $1.78 billion.
"Our operating results reflect the operational improvements we've prioritized throughout the year, as well as the strength of our margin profile," said Williams-Sonoma CEO Laura Alber, highlighting that the operating profit margin rose to 17.8% from 17% in 2023.
The company reduced full-year net revenue guidance, adjusting the expected decline to a range of 4% to 1.5% from 3% to 1.5%.
However, it raised its operating margin forecast by 0.4 percentage points, now projecting a range of 17.8% to 18.2% for the year, up from the previous range of 17.4% to 17.8%.
Despite the management’s bullish commentary and earnings beat, retail sentiment on Stocktwits around Williams-Sonoma dipped to a year-low in the ‘extremely bearish’ (4/100) zone, supported by consistently ‘extremely high’ message volume.
Users on Stocktwits appear to be bearish following the revised guidance, which now projects a larger revenue decline, with the improved operating margin forecast failing to lift sentiment.
Williams-Sonoma stock has gained 73% so far this year. The shares will have doubled in value if today’s gains hold.
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