Williams-Sonoma stock slides as home goods boom recedes

Yahoo Finance Live anchors discuss quarterly earnings for Williams-Sonoma after the retailer saw a huge demand boom during the pandemic.

Video transcript

JULIE HYMAN: And guess what? The affluent consumers aren't necessarily buying everything either. They're not buying as many fancy sofas maybe, or pots and pans. Williams-Sonoma shares are tumbling, and that's after the company pulled its outlook for the full year and also saw some gross margin pressures there at its various brands. Pottery Barn still doing well, up 19.6% with its comps, but Williams-Sonoma comps falling, Westdown comps missing. So this is-- as we've talked about home goods, goods are having a challenging time.

BRIAN SOZZI: Yeah, if you bought pots during the pandemic, you probably don't need new pots. That's what you're seeing here.

JULIE HYMAN: I always need new pots.

BRIAN SOZZI: Always need new pots? What are you doing to your pots?

BRAD SMITH: But there was also--

JULIE HYMAN: It's like how you were-- [LAUGHS]

BRAD SMITH: There was also a little bit of a backup, too. Wedding registries as well play a decent part in that. And if you have that much of a pent-up demand because of the weddings that were pushed back because of the pandemic, or even proposals that were pushed back because of the pandemic-- got a few of those that are coming up next year as well-- look, at the end of the day, there are going to be people who, once again, cyclicality is going to be a major key in that particular business, if you have people who are starting their wedding registries at any of those Williams-Sonoma subsidiaries.

JULIE HYMAN: Yeah.