Pedestrians walk outside a Williams-Sonoma Inc. store in San Francisco, California.
David Paul Morris | Bloomberg | Getty Images
Williams-Sonoma posted fourth quarter earnings on Wednesday that exceeded analysts’ expectations as consumers continued to search for new products for their homes during the coronavirus pandemic.
The company’s stock rose roughly 10% in expanded trading as the company expects growth to continue over the coming year.
The company reported for the fourth quarter ended Jan. 31, relative to Wall Street analysts’ expectations based on a survey by Refinitiv:
- Earnings per share: $ 3.95 adjusted versus $ 3.39 expected
- Revenue: $ 2.29 billion versus $ 2.18 billion expected
“In the fourth quarter, despite shipping restrictions and low retail traffic, we achieved another quarter with sales and profitability growth of 26% and EPS growth of over 85%,” said Laura Alber, President and CEO of Williams-Sonoma, in a press release .
Net income rose from $ 166 million, or $ 2.10 per share last year, to $ 309 million, or $ 3.92 per share.
Excluding items, Williams-Sonoma earned $ 3.95 per share, beating analysts polled by Refinitiv, which was expected to $ 3.39 per share.
Net sales rose to $ 2.29 billion from $ 1.84 billion last year, beating expectations of $ 2.18 billion.
In fiscal 2021, the retailer expects retail traffic to recover and inventory levels to improve.
The company expects its performance to be in line with its long-term financial goals, which require mid to high single digit revenue growth.
Williams-Sonoma said it would increase its dividend 11.3% to 59 cents per share. Meanwhile, the board of directors approved plans to repurchase shares valued at $ 1 billion. The new buyback plan replaces its previous approval and comes into effect on March 17th.
Williams-Sonoma also owns furniture companies Pottery Barn, Pottery Barn Teen and Kids, and West Elm.
Read the full results publication here.
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