Williams-Sonoma Stock Hits All-Time High On Earnings Beat, Raised Outlook: Retail Sentiment Dips To Year-Low

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.

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%.

Williams-Sonoma Inc. Sentiment and Message Volume on Nov 20 as of 8:20 a.m. ET | Source: Stocktwits

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.