Robert Ohmes, an analyst from Bank of America Securities, reiterated the Hold rating on Williams-Sonoma. The associated price target is $215.00.
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Robert Ohmes has given his Hold rating due to a combination of factors influencing Williams-Sonoma’s financial outlook. Despite the company’s strong second-quarter performance, with earnings per share and comparable sales exceeding expectations, there are concerns about the impact of rising tariff costs in the latter half of the year. The company is expected to face increased expenses due to higher tariffs on imports from countries like China and India, which could pressure gross margins.
Furthermore, while Williams-Sonoma is taking steps to mitigate these costs through vendor concessions and strategic sourcing, the uncertain macroeconomic environment adds another layer of risk. The company’s ability to maintain its operating margin through full-price selling and supply chain efficiencies is a positive, but the potential for macroeconomic instability and tariff-related pressures warrants a cautious outlook. As a result, Ohmes maintains a Neutral stance, balancing these risks against the company’s competitive strengths and market position.
In another report released on August 25, Wells Fargo also maintained a Hold rating on the stock with a $190.00 price target.