Williams-Sonoma CEO sells stock to cover lost value

Share this article:

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.

Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Direct Line Blog

Sign up to our newsletters

Latest Jobs:


Company of the week

Data Services, Inc. meets the needs of today's data-driven marketer by providing front-end database management and data analytics platforms alongside our expertise in global contact data quality, database building and ongoing maintenance that comes with our 45+ years in business.


Find out more here »

More in Direct Line Blog

What (Truly) Matters to Millennials

What (Truly) Matters to Millennials

A recent study reveals the things that millennials really care about—and what moves them to make a purchase.

The Long, Hard Road to Marketing Sophistication

The Long, Hard Road to Marketing Sophistication

If there are times when you feel like you're way behind on the customer journey, well, you probably are. But so is nearly everyone else.

What Top Marketers Read to Get Inspired

What Top Marketers Read to Get Inspired

DMN's 2014 40 Under 40 Award winners have a bevy of business books on their must-read lists.