Needham analyst Anna Andreeva initiated coverage of Williams-Sonoma (WSM) with a Hold rating and no price target. The analyst notes that the company’s average sales per store are up 70% while its EBIT margins doubled, but assuming further deterioration in home furnishings demand next year and comments from RH (RH) about a hard landing, it is not clear where Williams-Sonoma profitability could trough. Andreeva adds that while the market is anticipating some negative revisions, the lack of visibility could keep pressure on the stock valuation.
Published first on TheFly
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