Company profile
Introduction
Williams-Sonoma (ticker: WSM) is an American listed consumer retail company that sells upscale kitchenware and home furnishings. Headquartered in San Francisco, California, USA. The company has 625 physical stores and distributes to more than 60 countries.
Business model
It is an American high-end household products retail company that mainly sells kitchenware, furniture, bedding, specialty foods, soaps, detergents and other household products.
William Sonoma sells its products through online stores, direct sales and brick-and-mortar stores.
Initial public offering
William Sonoma conducted its initial public offering in July 1983.
Controversial events
False advertising
In March 2020, the Federal Trade Commission (FTC) announced a settlement with William Sonoma on false advertising charges involving Goldtouch Bakeware products, Rejuvenation brand products, and Pottery Barn Teen and Pottery Barn Kids brand upholstered furniture products. It says it’s made in the United States. As part of its settlement with the FTC, William Sonoma agreed to stop making false, misleading or unsubstantiated “Made in the USA” claims and to pay $1 million to the FTC.
Incorrect origin labeling
In April 2024, Williams-Sonoma was fined nearly $3.2 million by the FTC for violating the FTC’s 2020 order to truthfully state whether its products were made in the United States, the first ever “Made in the USA” case. The largest civil penalty ever imposed.
Operating status
Brands
Under the organization of William Sonoma, the company’s brands are:
Williams-Sonoma: Mainly for cooking, dining and entertainment products, including cookware, knives, appliances, tableware, dining tables and bars, outdoor products, furniture and cookbooks and other high-end products for the kitchen and home.
Mark and Graham: Products include men’s and women’s accessories, small leather goods, jewelry, clothing, stationery, bar entertainment supplies, home decoration and seasonal merchandise, etc.
Bteen series: It is specially designed for teenagers’ bedrooms, dormitories, study rooms and leisure rooms, providing furniture, bedding, lamps and decorations, etc. In addition, it also provides a complete set of lighting and home products, including lamps, hardware, furniture and retro home furnishings. Decoration etc.
Pottery Barn: Products include furniture, bedding, bath products, rugs, curtains, lamps, dining tables, outdoor products, decorative accessories and more.
Pottery Barn Kids series: is a furniture brand specially designed for children; West Elm products include furniture, bedding, bathroom supplies, carpets, curtains, lamps, decorative accessories, tableware, kitchen recipes and gifts.
Rejuvenation Collection: Lamps, hardware and homewares.
West Elm Collection: modern furniture and home decor.
Green Row Collection: sustainably sourced furniture.
In addition, William Sonoma operates through eight counterpart sites and a gift registry.
e-commerce
William Sonoma is one of the largest e-commerce retailers in the United States and one of the largest multi-channel specialty retailers in the world. In 1987, William Sonoma launched an e-commerce website. William Sonoma’s e-commerce sales accounted for about 52 percent of its parent company’s first-quarter 2015 revenue.
Global presency
As of January 3, 2019, the company operated 625 stores, including 579 stores in 43 states, Washington, D.C., and Puerto Rico; 24 stores in Canada; 19 stores in Australia; 3 stores in the United Kingdom; and 108 franchises Run the store. In addition, the company operates e-commerce websites in the Middle East, Philippines, Mexico and South Korea.
As of February 2, 2020, Williams-Sonoma operated 614 stores, including 572 stores in 43 states in the United States; 20 stores in Canada; 19 stores in Australia; and 3 stores in the United Kingdom. Stores; 129 specialty stores and e-commerce sites in the Middle East, Philippines, Mexico and South Korea.
William Sonama China was established in 2011 and has branches in Dongguan, Hangzhou, Shanghai and Shenzhen. However, as of now, there is still no news of opening a store.
Acquisitions
In September 1986, William Sonoma purchased Pottery Barn from Gap. The acquisition includes Pottery Barn’s 27 home furnishings stores in California, Connecticut, New Jersey and New York for a total of $6 million. The company’s expansion led to the opening of its first distribution center in 1984 in Memphis, Tennessee.
In November 2011, the company acquired Portland, Ore.-based Rejuvenation, a lighting and hardware manufacturer and direct marketer with stores in Portland, Seattle and Los Angeles.
Capital market performance
Share price performance
As of November 27, 2024:
- The company’s stock price has risen 400% over the past five years.
- It has increased by 83% in the past year.
Valuation
The price-to-earnings ratio is only 20.28 times, which is not amazing. The market value is 20.98 billion US dollars, which is not high (please note that it is a high-end home retail, and the market is not large).
Dividend
The company’s current cash yield is 1.33%.
Stock split
Since its listing, the company has undergone eight stock splits. One share at the time of listing has now become 60.75 shares.
What’s special
Effects of COVID-19
The COVID-19 epidemic is raging and people are spending more time at home, driving up demand for household products. The company’s quarterly results surged and were better than expected. The stock price began to skyrocket, but after the COVID-19 epidemic of most companies ended, the stock price fell back to its original level, but William Sonoma has been rising all the way to this day.
Anomalies in the physical retail industry
The profits of the retail industry are not high, and the physical retail industry is even more difficult to operate. What’s more, William Sonoma operates high-end home retail, which is even more difficult to operate.
Miracles have happened in recent years
The miracle of William Sonoma’s business comeback has occurred in recent years. The company went public as far back as July 1983; but the stock price has not performed outstandingly over the past four decades. Most of the increase in the company’s stock price has occurred in the past five years, which is really rare.
Related articles
- “Upscale retailer Williams-Sonoma, stock surged in recent years, What’s special?“
- “Why is Costco’s valuation so staggering? “
- “Amazon vs. Alibaba“
- “Amazon’s dominance by its economic scale, impact share price of PayPal, Affirm, Fair Isaac, Visa, and Mastercard“
- “Walmart, the real retail overlord, how it makes money?“
- “Costco’s moats, and the Differences from Other Competitors“
- “How does Costco make money?“
- “Dollar General vs. Dollar Tree“
Disclaimer
- The content of this site is the author’s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.
- I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers’ direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.
