Williams-Sonoma: Hold Rating Amid Strong Performance and Tariff Challenges

Robert Ohmes, an analyst from Bank of America Securities, reiterated the Hold rating on Williams-Sonoma (WSM – Research Report). The associated price target is $205.00.

Robert Ohmes has given his Hold rating due to a combination of factors impacting Williams-Sonoma’s financial performance and outlook. The company reported better-than-expected earnings per share and comparable sales growth for the first quarter, indicating a positive trend across all its brands. However, the gross margin experienced a decline due to increased input costs, such as higher ocean freight and tariff mitigation expenses, which were only partially offset by supply chain efficiencies and occupancy leverage.
Despite the company’s efforts to manage additional tariff costs through vendor concessions, resourcing goods, and selective price increases, the uncertain macroeconomic environment and tariff challenges remain significant concerns. While Williams-Sonoma’s operating margins are strong and its market share is growing, these positive aspects are balanced by the risks associated with tariffs and the broader economic landscape. Consequently, the Hold rating reflects a cautious stance, with a price objective set at $205 based on projected earnings for the future.

Ohmes covers the Consumer Cyclical sector, focusing on stocks such as O’Reilly Auto, AutoZone, and Lowe’s. According to TipRanks, Ohmes has an average return of 8.8% and a 57.73% success rate on recommended stocks.

In another report released today, Barclays also maintained a Hold rating on the stock with a $166.00 price target.