Why Williams-Sonoma Stock Went Up 15% Last Month
Shares of retailer Williams-Sonoma (NYSE: WSM) went up 15.3% in September, according to data provided by S&P Global Market Intelligence, which was enough to easily outpace the 2% gain for the S&P 500. But when looking at August and September together, Williams-Sonoma stock was completely flat. In other words, shares fell sharply in August before merely bouncing back in September.
Here's why it dropped it August: Williams-Sonoma's management reported financial results for its fiscal second quarter of 2024 on Aug. 22, reducing its full-year revenue expectations at that time. Management was hopeful it could muster up to 3% year-over-year growth this fiscal year. But now it believes revenue will be down at least 1.5%.
With this context, here's why it bounced back in September: Williams-Sonoma is only expecting a modest dip in revenue, but its profitability is another thing entirely. It had guided for a full-year operating margin of 17% to 17.4%. But in Q2, it raised full-year guidance to 17.4% to 17.8%.
Source Fool.com
