Following the report, Jefferies cut its price target on the stock to $56 from $57, maintaining a "hold" rating.
Jefferies noted that the San Francisco-based specialty home retailer cited a "softening retailer environment due to softer consumer spending" as reason for the revenue miss.
"While this didn't seem to impact the high growth West Elm stores as much, we have seen a general deceleration in growth rates for the category as government data has revealed," the firm added.
Williams-Sonoma's costs are "well controlled," Jefferies said, and the firm expects that the company is getting closer to the bottom on earnings per share revisions.
Jefferies added that the company could see risks including increased competition and promotion from both brick-and-mortar and online retailers, product appeal and the housing cycle in general.
Shares of Williams-Sonoma were gaining in mid-morning trading on Thursday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.
The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: WSM