Williams-Sonoma (NYSE:WSM) reported its Q1 earnings results yesterday, with EPS coming in at $2.64, beating the Street estimate of $2.38. Revenue was $1.76 billion, coming in worse than the Street estimate of $1.8 billion.
The company maintained its full 2023-year and long-term outlook. Net revenue is expected to grow from (3%) to 3%. The operating margin is seen at 14%-15%. Management sees an annual revenue growth rate in the mid-to-high single digits over the long run.
With the backlog largely normalized sales now more closely reflect the deteriorating demand environment. Analysts at RBC Capital give management credit for exercising increased cost discipline but recognize additional visibility is needed for investors to meaningfully get behind shares.