) to buy from market perform.
The home goods retailer raised guidance and also set a 2-for-1 stock split. Analyst Shelly Hale says Williams-Sonoma pre-announced a huge first quarter upside. She notes operating margins are expected to expand 340 basis points to 3.9%, adding that strong response to new Pottery Barn merchandise has resulted in expected comparable sales (sales at stores open for more than one year) of 5% vs. her 4% estimate.
Hale says if business remains as strong as in the first quarter, she believes there's upside to her fiscal 2003 and 2004 estimates. She raised her $1.54 fiscal 203 (Jan.) EPS estimate to $1.74. She has a $62 target.