Executive Summary

• Williams-Sonoma reported 4Q15 revenues of $1.6 billion, up 2.9% year over year but slightly below the consensus estimate. EPS was $1.55, slightly below the consensus estimate of $1.58 and down 1.2% year over year.
• Comps increased by 0.8% year over year, following an increase of 5.1% in the year-ago quarter, based on 12.8% growth at West Elm that was partially offset by a decline of 2.0% at Pottery Barn.
• For 2016, the company expects sales growth in the low-to-mid-single digits based on 3%–6% comp growth, or revenue of $5.2–$5.3 billion. The company expects 4%–8% EPS growth, which would result in EPS of $3.50–$3.65, below the consensus estimate of $3.75.