When you’re a pottery Barn employee, the best items come from home
Pottery Barn’s stock price has soared since the company was spun off from J.
Crew in August.
But the stock price is actually lower now than it was when it was purchased by the online retailer in late 2015.
The stock has climbed nearly 12% since then, according to data from Morningstar Inc., a research firm.
“Purchases made on the day of closing are likely driven by the expectation of the stock’s price increase,” Morningstar said in its monthly research note.
“This may be exacerbated by the fact that the market has moved on from the company’s IPO and that the company has not been able to post the same sales growth as its predecessor.”
In January, the stock rose by 6.5% on a broad index, according the S&P 500.
But since then the stock has fallen by more than 6% in the span of six months.
The company is still up more than $300 per share, which puts it on track to be worth $5.2 billion by the end of 2021, according To Be The Master.
“Our view is that we are still in a bull market with a low-cost environment, with the opportunity for profit growth and, of course, higher revenue,” said Dan Siegel, chief executive officer of PotteryBarn.com.
But he said that while the stock could benefit from a strong retail sales environment, that won’t be enough to keep the company on track for profit.
“While we are seeing the impact of this in the industry, the retail impact will likely be muted,” he said.
“If we had an opportunity to grow sales and generate revenue, we would be a lot more inclined to do that.”