Williams-Sonoma stock jumps on Q4 beat, dividend hike

© Reuters. Williams-Sonoma (WSM) stock jumps on Q4 beat, dividend hike

Williams-Sonoma (NYSE:) saw its shares rise 7% at the market open Wednesday after the consumer retail company reported better-than-expected fiscal Q4 earnings and revenue.

The company generated quarterly earnings per share (EPS) of $5.44, topping the consensus estimates of $5.14. Revenue came in at $2.28 billion, also above the estimated $2.22 billion.

The adjusted operating margin for the quarter was reported at 20.1%, slightly above last year’s 19.9% and in line with the estimated 20%.

Looking ahead to fiscal year 2024, Williams-Sonoma anticipates its annual net revenue growth to vary between -3% and +3%, with comparable sales (comps) expected to range from -4.5% to +1.5%.

The retailer also forecasts an operating margin between 16.5% and 16.8%.

Furthermore, it declared a 26% hike in its quarterly cash dividend to $1.13 per share, payable on May 24, 2024, to shareholders recorded by April 19, 2024. Also, the company’s Board of Directors has approved a new $1 billion stock buyback program, replacing the existing authorization.

“We outperformed in 2023 despite the slowest housing market in several decades and geopolitical unrest. Although this pressured our top-line trend, we stayed focused on full-price selling, supply chain efficiencies, and best-in-class customer service,” said Laura Alber, President and CEO of Williams-Sonoma.

“We have transformed our business model and as a result, we delivered an operating margin well ahead of our pre-pandemic profitability.”