Why Williams-Sonoma Stock Soared 35% in March
Shares of Williams-Sonoma (NYSE: WSM) stock jumped 35% in March according to data provided by S&P Global Market Intelligence. It reported better-than-expected results for the 2023 fourth quarter, and management provided positive guidance for 2024.
Williams-Sonoma sells kitchen items and housewares through its network of upscale brands, which includes the Williams-Sonoma name, Pottery Barn, and West Elm. These stores cater to an affluent clientele that's resilient during economic fluctuations and can afford to pay full prices.
That doesn't mean the company is immune to the impact of inflation. Although it managed better than other housewares companies initially, it's feeling the pressure right now. Fiscal fourth-quarter (ended Jan. 28) sales were down 6.8% from last year, and full-year sales were down 9.9%. However, because of the high full-price sales rate, gross margin expanded for both the quarter and the full year. Operating margin was a strong 20.1% in the fourth quarter, and earnings per share (EPS) rose from $5.35 last year to $5.53 this year. Williams-Sonoma had a strong close to the year.
Source Fool.com
