Why Williams-Sonoma Popped 20.2% This Week
Shares of Williams-Sonoma (NYSE: WSM) shot up 20.2% this week, according to S&P Global Market Intelligence. The home goods retailer that owns brands like Pottery Barn, Williams-Sonoma, and West Elm reported strong quarterly results, possibly surprising investors who are worried about a potential recession and rising inflation. The stock was up as much as 24% this week.
After the close on May 25, Williams-Sonoma reported its financial results for the three months ending on May 1. Comparable brand revenue grew 9.5% in the period, driven by growth of 14.6% at Pottery Barn and 12.8% at West Elm. Operating margin also stayed elevated, at 17.1% for the quarter, which is slightly surprising given the margin pressures both Walmart and Target are currently experiencing because of rising inflation. In fact, Williams-Sonoma stock sank because of poor reports from both of these retailers last week. I guess Williams-Sonoma didn't get the memo. Steady margins and solid growth led the company to generate earnings per share (EPS) of $3.50, up 20% year over year.
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Source Fool.com
