Williams-Sonoma, Inc. WSM continues to enhance its home furnishing business by investing in new and remodeled stores. In line with its growth strategy, Williams-Sonoma recently unveiled that its portfolio brand Rejuvenation has opened its first ever store in Minnesota. The new store is located in the heart of Edina’s shopping and restaurant centre.
This 5,500-square-foot store will display more than 240 light fixtures and 40 different hardware collections, along with the mixture of furniture, textiles, outdoor living collections and more.
Patrons looking for instructions regarding designing, customization, and renovation of their homes may directly contact the store person or book an in-house design appointment.
In this regard, Aujsha Taylor, senior vice president of Rejuvenation Brand, said, “From providing free interior design assistance for home refreshes and renovations through our Design Crew services, to helping our Trade customers find that perfect customized lighting solution for a residential or hospitality space, we look forward to supporting our Twin Cities customers with a variety of projects.”
So far this year, Williams-Sonoma’s shares have rallied 59.7% compared with the Zacks Retail – Home Furnishings industry’s 48.6% growth. The company is riding on strength across all of its brands and accelerated e-commerce growth. Also, disciplined cost control, along with higher merchandise and occupancy leverage, helped it attain margin expansion.
Williams-Sonoma is one of the largest e-commerce retailers in the United States, and has historically been one of the most profitable e-commerce companies. It is observing higher-than-expected e-commerce traffic and a very strong demand from the e-commerce business in Canada.
Williams-Sonoma’s innovative efforts have helped it drive e-commerce growth. The company’s investment in merchandising its brands, efficient catalog circulations and digital marketing boosts revenues from the e-commerce channel. E-commerce penetration accounted for more than 65% of total revenues for first-quarter fiscal 2021, buoyed by content-rich online experience and marketing strategies. The company remains on track to invest $200-$250 million in e-commerce in fiscal 2021, prioritizing on technology and supply chain initiatives that primarily support said business’ growth. This highlights the digital-first nature of Williams-Sonoma’s business.
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Zacks Rank & Other Key Picks
Williams-Sonoma currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the same space include At Home Group Inc. HOME, Tempur Sealy International, Inc. TPX and The Lovesac Company LOVE in the Zacks Retail – Home Furnishings industry. At Home and Tempur Sealy International sport a Zacks Rank #1 (Strong Buy) each. Lovesac has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
At Home has a long-term expected earnings per share (three to five years) growth rate of 36.8%.
Tempur Sealy International’s earnings for 2021 are expected to surge 46.7%.
Lovesac has a trailing four-quarter earnings surprise of 118%, on average.
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