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Williams Sonoma (WSM) sinks 5% on lofty outlook

By Robert Davis

19:08, 19 November 2021

Williams Sonoma storefront in a shopping mall in Toronto
Williams Sonoma storefront in a shopping mall in Toronto, Canada. Photo: Shutterstock

Home retailer Williams Sonoma saw its stock drop by more than 5% to $210.94 (£156.79) before the US markets opened on Friday after the company released a lofty outlook in its third quarter earnings.

The stock recovered to $219.30 on the day by 15:00 UTC, representing a climb of 0.22%.

Earnings details

One reason the stock was able to recover is that Williams Sonoma reported strong third quarter earnings, even though some analysts say the company’s outlook is ambitious.

Williams Sonoma reported net revenues of more than $2bn, representing a 16% increase on an annualised basis, according to the San Francisco, California-based company’s earnings statement.

The company’s net earnings for the quarter were $249.5m compared to the $201m the company recorded at this time last year.

EPS were reported at $3.37 in Q3 compared to $2.60 last year.

Laura Alber, the company’s president and chief executive officer, described Q3 as “yet another quarter of outperformance.”


44,103.15 Price
-1.140% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

Oil - Crude

71.41 Price
+2.320% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee -0.0015%
Overnight fee time 22:00 (UTC)
Spread 0.030


16,080.90 Price
+0.500% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0


0.68 Price
+0.530% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

“Our performance demonstrates that we can continue to take share in a fractured market, and deliver high-quality, sustainable earnings,” Alber said.


Investor sentiment for the stock remains strong as it has increased in value by more than 35% over the last six months.

Meanwhile, company leadership has lofty expectations for the future despite supply chain woes that are plaguing the retail industry.  

Williams Sonoma raised its net revenue growth expectations to between 22% and 23% for the entire fiscal year.

The company also expects to report a non-GAAP operating margin between 16.9% to 17.1%, the earnings statement says.

Read more: Shares of Williams-Sonoma spike after raised outlook

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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