Shares of Williams-Sonoma, Inc. (WSM) gained over 6% on Wednesday’s extended trading session after the company reported its fourth-quarter results, with earnings trumping Street estimates. The company also lifted its quarterly dividend and authorized a $1.5 billion stock buyback.<\/p>\n
Fourth-quarter net earnings rose to $402.9 million or $5.41 per share from $309.0 million or $3.92 per share last year. Adjusted earnings for the quarter were $5.42 per share, up from $3.95 per share last year.<\/p>\n
Revenues for the fourth quarter rose to $2.50 billion from $2.29 billion last year.<\/p>\n
Analysts polled by Thomson Reuters expected earnings of $4.82 per share on revenues of $2.58 billion. Analysts’ estimates typically exclude one-time items.<\/p>\n
The company reported comparable brand revenue growth of 10.8%, including West Elm at 18.3%, Pottery Barn accelerating to 16.2%, and Williams Sonoma at 4.5% on top of 26.2% last year.<\/p>\n
“We are thrilled to deliver a strong finish to fiscal 2021, driving record results, with Q4 comps of 10.8% and operating margin expansion of 310 basis points. These results reflect the resilience in our business<\/span> model, as we successfully navigated unprecedented challenges within the supply chain, material and labor shortages, and capacity limitations from our incredible consumer demand,” said CEO Laura Alber.<\/p>\n Looking forward, the company said it plans its fiscal year 2022 financial performance to be in line with its long-term financial guidance of mid-to-high single digit annual net revenue growth, increasing revenues to $10 billion by fiscal year 2024, and operating margins relatively in-line with fiscal year 2021 operating margin.<\/p>\n Separately, Williams-Sonoma authorized a 10% increase to its quarterly cash dividend to $0.78 per share. The quarterly dividend is payable on May 27, 2022, to stockholders of record as of the close of business on April 22, 2022.<\/p>\n The Board of Directors also approved a new $1.5 billion stock repurchase authorization, which supersedes the approximately $750 million that remains outstanding under the company’s current stock repurchase authorization.<\/p>\n WSM closed Wednesday’s trading at $152.45, up $3.94 or 2.65%, on the NYSE. The stock further gained $10.29 or 6.75% in the after-hours trading. <\/p>\n