Williams-Sonoma CEO sells stock to cover lost value

Share this content:

Reuters and others are reporting that Howard Lester, CEO of Williams-Sonoma Inc., recently sold 14% of his shares in the company to cover what’s known as a margin call. The information was revealed by Williams-Sonoma in a filing with the Securities and Exchange Commission.

When a company borrows from a brokerage house to buy stocks on credit using securities and the stock dips below a certain point, brokers who lent investors money through these margin loans can demand that investors sell part of the stock or deposit more money to cover the losses. This is a margin call.

The upscale home furnishings chain is one of several multichannel merchants that have watched its value drop significantly this year amidst a soft US economy and weak housing market.  Shares of Williams-Sonoma have lost 53% of their value since the beginning of the year. Over the past month, the stock has lost 33%. Shares closed at $12.10 on Wednesday.

Lester sold approximately 1 million shares in all on Monday and Tuesday for an average of $12.63 and $13.17, respectively. Following the sale, he owned about 6% of the company’s shares.

DMNotes is DMN's around-the-clock blog. Yes, a blog in 2016.

Bookmark this section and follow our RSS Feed here

close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above