Share price of Williams-Sonoma, Inc. (WSM) increased 2.3% since the company announced its franchise agreement with Distribuidora Liverpool, S.A. de C.V. on Oct 1.
Per the agreement, the home furnishing company will offer brands such as Williams-Sonoma, Williams-Sonoma Home, Pottery Barn, Pottery Barn Kids, PBteen and West Elm through both stores and e-commerce in Mexico. Notably, the first store is expected to be operational in 2015.
Distribuidora Liverpool’s market expertise and extensive supply chain are likely to support Williams-Sonoma’s business in Mexico significantly. With improvement in the economic prospects of Mexico, demand for consumer goods is also on the rise. Meanwhile, the fortified Mexico presence will enhance Williams-Sonoma’s international business meaningfully.
Williams-Sonoma already enjoys strong international presence with 589 retail stores across the world. Other than the United States, the company operates retail stores in the Canada, Puerto Rico, Australia, and the United Kingdom. Williams-Sonoma has also franchised stores in some of the countries in the Middle East. In fact, the company recently opened Pottery Barn and Pottery Barn Kids in Philippines, marking its first store in Southeast Asia.
Later in 2014, Williams-Sonoma intends to open eight stores in Australia and new West Elm stores in the U.K. The company also plans to launch Pottery Barn and Pottery Barn Kids fully-integrated websites in the U.K.
Williams-Sonoma currently carries a Zacks Rank #3 (Hold).
Investors interested in the retail sector can consider stocks like Mattress Firm Holding Corp. (MFRM), Restoration Hardware Holdings, Inc. (RH) and J. C. Penney Company Inc. (JCP). While Mattress Firm Holding sports a Zacks Rank #1 (Strong Buy), Restoration Hardware and J. C. Penney hold a Zacks Rank #2 (Buy).
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