Important note

This AI stock analysis for Williams Sonoma is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Williams Sonoma - AI Stock Analysis

Analysis generated May 23, 2025

Williams Sonoma, a high-end American consumer retail company that sells kitchenware and home furnishings, has built a reputation for quality and customer service. The company operates under various brand names including Pottery Barn, West Elm, and Rejuvenation. Over the years, Williams Sonoma has expanded its market presence not only through physical retail locations but also via a robust e-commerce platform.

Fundamental Analysis

For the last quarter, Williams Sonoma recorded a revenue of $2.46 billion. This reflects a notable increase of 36.74% compared to the previous quarter, signifying substantial recent growth. When compared to the same quarter last year, revenue has grown by 8.04%, indicating positive year-over-year growth.

The company’s net income for the last quarter was $411 million, marking a significant rise of 64.98% compared to the previous quarter. Year-over-year, net income has increased by 15.88%, reinforcing the company’s profitability trajectory.

The EBITDA for the last quarter stood at $588 million, an increase of 55.21% from the prior quarter. When compared to the same quarter last year, EBITDA has seen a growth of 11.81%, underscoring strong operational efficiency.

The current price-to-earnings (P/E) ratio is 19.13, which is within a normal range. This suggests that the stock is neither overvalued nor undervalued based on earnings performance. However, insider selling activities over the past few months might be seen as a bearish signal, prompting cautious consideration.

Technical Analysis

The current stock price of Williams Sonoma is $157.85, which represents an 8.21% increase from a month ago, hinting at short-term positive momentum. In the long term, the stock has climbed 11.39% over the past year.

Despite these indications, the trend appears bearish. The 10-day Simple Moving Average (SMA10) is 169.78, down from the previous SMA10 of 171.44, suggesting potential downward price movement. The Relative Strength Index (RSI) is at 54.2, indicating a neutral condition, neither overbought nor oversold.

Alternative Data Analysis

Williams Sonoma has currently 490 open job positions, a stable number reflecting a steady employment scenario and possibly a stable operational environment. Employee sentiment towards the company's business outlook remains neutral.

However, customer acquisition is presenting a worrisome trend. The company’s website has seen 5.8 million visitors, but this number is down by 18% in the last couple of months, suggesting potential customer attrition.

Customer engagement metrics are mixed. On social media, the company has 1.9 million followers on Instagram and 100,000 on Twitter. While Instagram followers have neither meaningfully increased nor decreased, Twitter followers have declined by 1%, potentially indicating diminishing interest.

AltIndex’s AI score for Williams Sonoma is 38, which serves as a sell signal. This score aggregates various factors from fundamental, technical, and alternative data analyses to predict stock performance.

Conclusion and Recommendation

Williams Sonoma demonstrates strong fundamental performance with impressive increases in revenue, net income, and EBITDA. Despite this, technical analysis indicates a potential downward trend, and alternative data reflect uncertainties regarding customer acquisition and engagement.

Given the mixed signals from different analysis perspectives and the AI score lean towards a sell, a cautious investment approach is recommended. Investors should closely monitor upcoming earnings, insider trading activities, and customer trends before making substantial investment decisions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.