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Williams-Sonoma shares rise as stay-at-home trends fuel better-than-expected sales


Pedestrians stroll in entrance of a Williams-Sonoma Inc. retailer in San Francisco, California.

David Paul Morris | Bloomberg | Getty Images

Williams-Sonoma posted fourth-quarter earnings Wednesday that beat analysts’ expectations as customers continued to buy furnishings and cookware as they spent extra time at residence in the course of the coronavirus pandemic.

The firm’s inventory rose greater than 11% in prolonged buying and selling, as the corporate expects its development to proceed within the 12 months forward.

Here’s what the corporate reported for the fourth quarter ended Jan. 31, in contrast with what Wall Street analysts anticipated, utilizing a survey from Refinitiv: 

  • Earnings per share: $3.95 adjusted vs. $3.39 anticipated 
  • Revenue: $2.29 billion vs. $2.18 billion anticipated 

“In Q4, despite shipping constraints and low retail traffic, we delivered another quarter of accelerating revenue and profitability with 26% comp growth and over 85% EPS growth,” stated Laura Alber, president and CEO of Williams-Sonoma, in a press launch.

Net earnings rose to $309 million, or $3.92 per share, from $166 million, or $2.10 per share, a 12 months earlier. 

Excluding objects, Williams-Sonoma earned $3.95 per share, topping the $3.39 per share anticipated by analysts surveyed by Refinitiv. 

Revenue rose 24% to $2.29 billion from $1.84 billion a 12 months in the past, beating expectations of $2.18 billion.

Growth was boosted by a 47.9% bounce in e-commerce income, with about 70% of its whole income coming from its e-commerce enterprise.

Same-store sales for the complete firm have been up 25.7% within the newest quarter, with all of its manufacturers seeing double-digit positive factors.

Its namesake model, Williams-Sonoma, reported same-store sales rose 26.2%. Both Pottery Barn and Pottery Barn Kids and Teen reported a 25.7% acquire in same-store sales. West Elm was carefully behind with a 25.2% same-store sales enhance.

For fiscal 12 months 2021, the retailer expects retail site visitors to get better and stock ranges to enhance.

The firm stated it expects its efficiency to be in step with its long-term monetary targets, which name for mid-to-high single-digit income development.

Williams-Sonoma stated it’ll enhance its dividend by 11.3% to 59 cents a share. Meanwhile, its board authorized plans to purchase again $1 billion in inventory. The new repurchase plan replaces its prior authorization and can go into impact on March 17.

Read the complete earnings launch right here.



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