Jim Cramer Defends Williams-Sonoma After Strong Earnings Despite Initial Selloff
On the August 26 episode of Mad Money, Jim Cramer criticized the initial selloff in Williams-Sonoma (WSM) following its strong earnings report. The company reported second-quarter revenue of $1.96 billion and raised full-year guidance across multiple metrics despite a challenging environment. While sales growth was robust, non-GAAP gross margin declined due to tariffs and higher oil prices affecting transportation costs. Cramer noted that the stock initially dropped 5% after earnings but recovered to close up 1%. The company is gaining market share without relying on housing recovery or discounting strategies. However, management warned that full margin recovery remains uncertain as tariff pressures are expected to moderate only gradually and other cost factors persist. Institutional interest in WSM has increased with more hedge funds holding the stock compared to previous quarters. Short interest remains at a measured level of 4.55% of public float.
Tickers: $WSM
Topics: earnings margin_pressure stock_reaction