Cristina Fernandez is a senior analyst with the Telsey Advisory Group. She said that furniture sales are an area where the company can grow. Many Americans still decorate their larger or second-homes that they bought during the pandemic.

She said, “When people move they usually furnish their homes piecemeal.” They will move room by room. “They’ll go from room to room.

After Williams-Sonoma reported earnings last Wednesday, she raised Williams-Sonoma’s price target from $220 to $250. This is approximately 19% more than where Williams-Sonoma currently trades. According to the firm, the company is rated outperform.

Fernandez stated that the company is in a position of advantage due to high demand for home goods. They have been able not to push back on the promotions.

She said that the brand’s flagship will face tougher competition and may be hurt in the coming year if people trade down to cheaper furniture or cookware due to inflation, etc. Williams Sonoma Home’s furniture brand tends to be more expensive than Pottery Barn or West Elm.

The fastest growing brands were furniture-focused in the most recent quarter. West Elm saw its fiscal third quarter same-store sales rise 22.5% compared to a year ago. Pottery Barn Kids and Teen rose 16.9% and Pottery Barn rose 15%, respectively. Williams Sonoma has at least 12 month-old stores, while its ecommerce sales grew 7.6% over the same time. This was in addition to a jump of 30.4% last year.

For the entire three-month, Wall Street estimates that the parent company had logged an almost 17% sales increase for same-stores.

Fernandez believes Williams Sonoma’s flagship brand will drive sales through the expansion of its private label product lines and special merchandise like meat rubs and seasonings by Traeger grilling company or premium cookware that is endorsed by celebrities such as Bobby Flay.

Williams Sonoma created Williams Sonoma Reserve, a new membership program to engage customers. The membership program offers members free shipping on many products, access to a virtual recipe app, and the opportunity for celebrity chefs such as Ina Garten to host cooking classes. For $99, the subscription fee covers a one-year period. Subscribers can opt to only the recipe app for $39.99, and get how-to videos.

Joe Derochowski of The NPD Group is a home industry advisor. He said that home-based retailers will be able to earn multiple income streams over the holidays. Consumers will start to buy new coffeemakers, cutters, and other items as they prepare for their guests’ arrival.

People may request the items to be given as gifts, or purchase them as gifts for their friends and family. This could increase sales. And at parties, people may discover an appealing gadget or kitchen tool after hearing friends or family rave about it — and later decide to buy it, he said.

According to him, sales of host-related products like platters, glassware, and food storage for leftovers tends to peak in the first half of December. Retailers will need to continue to sell as customers spend more time outside the home, eating, and traveling next year.

According to NPD projections, home industry unit spending is likely to decrease by 5% in 2022 and 2021 respectively. However, the figure will remain about 14% above 2019 levels. NPD covers housewares, kitchen electronic, and tools for home environments like air purifiers and vacuum cleaners. Personal care products such as electric toothbrushes are also included. This does not cover furniture and home decor.

NPD’s Derochowski stated that convenience items may be an area of potential growth. According to Derochowski, people will likely buy robotic vacuums, automated espresso machines or multi-cookers, such as air fryers and slow cookers.

He said, “The convenience has been raised in our daily lives.”

Ross stated that Williams Sonoma expects to grow in furniture and food. The Williams Sonoma brand is represented in its stores and online, which sell a variety of shelf-stable foods, including pasta sauces and cake mixes. The company also delivers prepared food directly to customers’ homes. You can also find gourmet products at the company, often with Casamigos brand tequila.

Ross indicated that the future will bring more variety to food and drink, with consumers seeing more of a range of international flavours and mix-and-match cocktails.

Ross stated that Williams Sonoma Home has enhanced the design aesthetics of its flagship brand to make it “more sophisticated and curated”, and “an online luxury furniture destination.”

It’s an easy fit, he said. People are getting ready to display their homes during the holiday season and beyond.

You need a living space if you entertain. A guest room is necessary for hosting guests. You need a table to entertain guests. If you’re cooking, you need your kitchen outfitted — so barstools, you need lighting, you need the cookware, you need the tabletop that goes on top of the dining table. Thus, our view is that we are the ones who cook and entertain.