Jim Cramer Says Williams-Sonoma (WSM) Selloff Was Wrong After Strong Earnings

Williams-Sonoma (WSM) experienced a short-lived selloff following its strong earnings report on August 26, 2022. Cramer stated that the stock's initial decline was incorrect because the company had already posted a 31% increase. The retailer reported a 6.7% year-over-year revenue growth for the second quarter, reaching nearly $1.96 billion.

Comparable-brand revenue increased by 6.2%. Non-GAAP diluted earnings per share were $2.10. Management raised their fiscal 2026 guidance, projecting revenue growth between 4.7% and 7.2%, comparable-brand revenue growth between 4% and 6.5%, and non-GAAP operating margin between 17.8% and 18.2%. CFO Jeff Howie highlighted the company's market-share gains as significant, as the home-furnishings industry remained flat.

Howie also mentioned that the company increased full-price penetration without discounting, but faced margin pressure due to tariffs and higher oil prices. Institutional positioning improved, with 48 hedge funds holding WSM in the second quarter, up from 39 in the first.