A retailer well known for its home design and kitchen products is finding success in an under-appreciated way, according to the company's CEO.
Williams-Sonoma (WSM), which created, fashion, food and fun to sell quality home designs in the 20th century, now sees its business of selling its products direct to businesses growing rapidly.
Laura Alber, president and CEO of Williams-Sonoma made the point on a recent episode of the Mad Money TV show that the company’s business-to-business segment is performing well, albeit under the radar, in an $80 billion market.
Williams-Sonoma has had success selling its distinctive products to the likes of health care centers and housing developments, as demand for better quality designs grows in business settings according to Alber.
She said investors also don't appreciate the company’s many competitive advantages, which include their design capabilities, supply chain performance and their digital platform.
Williams-Sonoma recently posted 60-cents-a-share earnings beat with a bullish forecast for the rest of 2022. Shares have been trading for less than 11 times earnings.
Recently on Real Money, Bruce Kamich reviewed the charts for Williams Sonoma.
"Traders can be patient and wait for a pullback to $150 before buying WSM," Kamich wrote. "Risk to $135. The $215-$220 area is our price target for now."
Starting inside a 1950s California wine country hardware store, Williams-Sonoma made its home fashions desired worldwide, using celebrity chefs and a distinctive catalog. The company sold and explained kitchen items from France that many Americans had never seen before. Now, the company’s online presence is increasing.
Williams-Sonoma has been closing some brick and mortar stores recently. When asked about those store closures, Alber explained that locations like their store in Beverly Hills were old and dated. Now, it's been replaced by lifestyle centers that showcase the company in a whole new light. The first Williams Sonoma store in the UAE recently opened in Dubai.
