Direct Line Blog

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:
close

Next Article in Direct Line Blog

Sign up to our newsletters

Latest Jobs:


Company of the week


Concerned about growth? With over 25 years experience in the industry, the list experts at Fairfield Marketing Group possess the know-how to help immediately improve any domestic or international direct marketing effort. First-time and well-established mailers can rely on Fairfield Marketing Group's expertise to help launch campaigns into positive and profitable ventures.

Find out more here »

More in Direct Line Blog

4 Ways to Make 140 Characters Count

4 Ways to Make 140 Characters Count

Here's how to market a brand successfully in a Twitter bio.

It Ain't Easy Being a Green Marketer

It Ain't Easy Being a Green Marketer

If brands are going to talk the green talk, they need to be prepared to walk the green walk. This and other Earth Day-related musings.

Relevance Is the "Sole" of Finish Line's Remarketing

Relevance Is the "Sole" of Finish Line's Remarketing

How the athletic footwear retailer applied its email remarketing tactics to Facebook.