Will Williams-Sonoma's New Home Decor Collection Boost Sales?

Williams-Sonoma, Inc.’s WSM brand, PBteen, together with Benefit Cosmetics launched a home decor collection, namely the Benefit x PBteen Collection.

The Benefit x PBteen Collection, inspired from Art Deco and retro 1970’s shapes and silhouettes, includes chic home furnishings, bedding, decor, beauty and vanity accessories, along with lively wall art.

Benefit Cosmetics, a San Francisco-based makeup brand, is one of the emerging beauty brands providing instant beauty solutions. Its footprint is spread over 4000 counters in 48 countries, having more than 1800 BrowBars and 86 Boutiques on a global basis.

With consistent demand for new products, Williams-Sonoma continues to innovate in order to match the changing preference of consumers. It also collaborates with celebrated brands and designers to offer exclusive designs on home furnishing products. The company believes that these initiatives attract new customers, invent new trends and widen its social media reach. The personalized service provided through new retail stores has been one of the driving forces behind improving Williams-Sonoma’s results in the recent quarters.

Notably, in the second quarter of 2018, Williams-Sonoma’s total revenues grew 6.1% year over year. Also, comparable brand revenues increased 4.6% in the quarter. In fact, the E-Commerce segment’s net revenues rose 8.9% in the same period. The segment accounted for 53.9% of the total revenues. The results marked the highest second-quarter e-commerce growth rate over the past 3 years.

In fact, Pottery Barn Kids and Teen recorded growth of 5.7% against 2.7% decline in the year-ago quarter. With these growth measures and innovations, Williams-Sonoma is poised to perform well, going forward.

Shares of Williams-Sonoma have outperformed its industry over a year. The company’s shares have gained 42.1% compared with the industry’s 7% growth. Also, earnings estimates for fiscal 2018 and 2019 have moved up 2.1% and 2.5%, respectively, over the past 30 days. Revenue growth and consistent innovation bode well for the stock.

Zacks Rank & Stocks to Consider

Williams-Sonoma currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Retail-Wholesale sector are Urban Outfitters, Inc. URBN, Boot Barn Holdings, Inc. BOOT and DSW Inc. DSW, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Urban Outfitters’ earnings are expected to grow 59.3% in 2018.

Boot Barn’s earnings for the current year are expected to increase 64.3%.

DSW’s earnings are expected to grow 14.5% in fiscal 2018.

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