Williams-Sonoma Q4 adjusted EPS $1.68 vs $1.61 Street view

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Home Depot, Best Buy and Dick’s Sporting Goods among the retailers poised to gain share from Sears

Home Depot Inc. , Lowe’s Cos. , Best Buy Co. Inc. and Dick’s Sporting Goods Inc. are among the retailers poised to gain market share as Sears Holdings Corp. continues to surrender it, according to UBS. Appliances, apparel and what analysts call “soft home” are Sears’ biggest product categories by sales. The struggling retailer is on the path to $16.1 billion in sales for fiscal 2017, down 70% from a peak level of about $53 billion in 2006, analysts wrote in a recent note. About $3.5 billion in Sears sales are major appliances. Home Depot, Lowe’s and Best Buy could capture about 75% of that thanks to their own merchandise assortments and their distance from a Sears store. About 80% of Sears locations are within 15 minutes of these other retailers. “While some of the appliance sales could leak to Amazon.com Inc. since it now carries Kenmore products, we think physical stores will remain the dominant channel for this category,” a UBS note said. Dick’s Sporting Goods could snap up 25% of the estimated $400 million in sporting goods sales, an increase of about 150 basis points in same-store sales. Pier 1 Imports Inc. and Williams-Sonoma Inc. could also see a basis-point lift from furniture sales. Since the beginning of 2018, Sears has announced new financing measures along with more than 100 additional store closures, including Kmart. Sears shares are down more than 70% for the past year while the SPDR S&P Retail ETF is up 0.3% for the period and the S&P 500 index is up nearly 14%.

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