Key Takeaways
- Williams-Sonoma on Wednesday reported better-than-expected earnings and revenue as the high-end home accessories retailer held prices steady and improved supply-chain efficiencies.
- The company also increased its dividend 26%, and raised its stock buyback amount.
- Shares of Williams-Sonoma skyrocketed nearly 20% to a record high on the news.
Shares of Williams-Sonoma (WSM) soared 18% to an all-time high Wednesday as the high-end home accessories retailer posted better-than-expected results, and raised both its dividend and stock buyback plan.
The company reported fiscal 2023 fourth-quarter earnings per share (EPS) of $5.44, with revenue falling 7% to $2.28 billion. Both exceeded estimates. Comparable brand revenue slipped 6.8%.
CEO Laura Alber said that Williams-Sonoma outperformed in 2023 “despite the slowest housing market in several decades and geopolitical unrest.” She added that while sales were pressured, the company didn’t cut prices and improved supply-chain efficiencies.
Williams-Sonoma also announced that it was boosting its quarterly dividend 26% to $1.13 from $0.90. In addition, the board expanded its share repurchase plan to $1 billion.
The company forecasted full-year fiscal 2024 revenue growth in the range of -3% to +3%, with comparable brand revenue between -4.5% and +1.5%.
Williams-Sonoma shares gained 17.8% to an all-time closing high of $283.87, after moving as high as $289.80 during Wednesday’s trading session. The stock has gained about 140% over the past year.
UPDATE: This article has been updated with closing share price information.