FX.co ★ Williams-Sonoma Q4 Results Top Estimates; Guides FY24 Revenue Growth In Line; Boosts Dividend 26%

Williams-Sonoma Inc., a luxury home furnishing retailer, announced its fourth-quarter net earnings on Wednesday. The earnings stood at $354.44 million, equating to $5.44 per share. This is a slight decrease compared to the same period in the prior year, which showed earnings of $354.99 million, or $5.28 per share.

Thomson Reuters had conducted a poll with 21 analysts who, on average, predicted the company's earnings to be around $5.12 per share for the quarter. These estimates usually do not account for one-time items.

The company reported a drop in net revenues for the quarter to $2.28 billion, down from $2.45 billion in the same quarter the previous year. Analysts had collectively estimated the company's revenue to be about $2.23 billion for the quarter.

There was also a 6.8% decline in comparable brand revenue. Looking ahead to the 2024 fiscal year, the company predicts its net revenue to range between a 3% decline and a 3% growth. Meanwhile, market expectations point toward a 1.2% revenue decline to $7.61 billion for the year.

The company has indicated that an additional week in the 2024 fiscal year will contribute to revenue growth by 150 basis points. In the long term, Williams-Sonoma continues to predict an annual net revenue growth in the mid-to-high single digits. The operating margin is expected to be in the mid-to-high teens.

In other news, the Board of Directors at the company approved a 26% increase in the quarterly cash dividend, taking it to $1.13 per common share. This will be payable on May 24, 2024, to stockholders of record as of April 19, 2024.

The Board also gave the green light to a new $1 billion stock repurchase authorization, thereby overriding the company's current stock repurchase authorization.