Williams-Sonoma, Inc. WSM has launched four e-commerce sites in Canada, reinstating its effort toward digital targeted marketing. This home furnishing retailer will provide the market with a robust assortment of products through company-owned and operated e-commerce sites for Williams Sonoma, West Elm, Pottery Barn and Pottery Barn Kids brands.
Williams-Sonoma already has 24 bricks-and-mortar locations in Canada and the latest digital expansion into the market will enable the company in providing a premier multi-channel experience to customers.
Williams-Sonoma is one of the largest e-commerce retailers in the United States generating around 53% of the revenues online. The segment has been consistently posting strong results. In fact, in the first nine months of 2017, this segment reported net revenues of $1.9 billion, reflecting an increase of 4.2% from the year-ago level. The company’s investments in merchandising of its brands, efficient catalog circulations and digital marketing help drive e-commerce revenues.
In order to address the slowdown in traffic and to gain more customers, the company is currently in the midst of a transformation and has been reworking on its marketing strategy, emphasizing on digital targeted marketing and investing in store remodeling.
Again, to enhance customer experience, the company is using web tools that utilize augmented reality (AR), creating videos on social media sites and making digital advertisements. Recently, Williams-Sonoma launched the Pottery Barn 3D Room View AR app on iOS for iPhone and iPad to enhance customers’ virtual reality experience.
Earlier this year, the company increased its digital advertising spend, which led to strong growth across all brands.
In fact, the company’s shares have gained 13.6% in the last three months compared with the Zacks Home Furnishings Industry’s growth of 11.3%. However, estimates for the current fiscal quarter and year have moved down 3% and 1.4%, respectively, over the past 30 days, reflecting analysts’ concern on the stock’s prospect.
That said, higher digital investments, strategic initiatives, innovative marketing techniques, focus on innovation and retail optimization are key growth drivers for this Zacks Rank #3 (Hold) company.
Zacks Rank & Key Picks
A few better-ranked stocks in the Retail-Wholesale sector are Beacon Roofing Supply, Inc. BECN, The Home Depot, Inc. HD and RH RH.
Beacon Roofing sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s current-year earnings are expected to increase 41.2%.
Current-year earnings for Home Depot are expected to grow 14.2%. The company carries a Zacks Rank #2 (Buy).
RH carries a Zacks Rank #2. Its current-year earnings are projected to grow 130.2%.
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