Diamonds and Dogs
Williams-Sonoma (WSM) jumping 10% thanks to strong earnings. The owner of not only Williams Sonoma, but Potter Barn as well saw earnings easily beat expectations as sales rose 8.2% to $1.2 billion ahead of estimates. The company also raised guidance for the full year as same store sales jumped 5.5% and operating margins rose year over year for the first time since 2014. Telsey Advisory Group upgraded the stock with $64 price target.
Best Buy (BBY) is lower by 7% even as earnings and sales beat expectations. Revenues rose 6.8% to $9.11 billion. The company also reiterated current quarter and full year guidance, but investors are selling the stock due to a gross margin running 10 basis points below consensus and a deceleration in online revenue growth from a 20%+ run rate in recent quarters to 12% for 2019.