Pedestrians walk in front of 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 analyst expectations as consumers continued to purchase furniture and cookware while spending more time at home during the coronavirus pandemic.
The company’s stock is up more than 11% during extended trading as the company expects its growth to continue in the coming year.
Here’s what the company reported for the fourth quarter ended Jan. 31, compared to what Wall Street analysts expected, using a survey from Refinitiv:
- Earnings per share: adjusted at $ 3.95 vs. expected at $ 3.39
- Revenue: $ 2.29 billion vs. $ 2.18 billion expected
“In the fourth quarter, despite shipping restrictions and low store traffic, we delivered another quarter of accelerated sales and profitability with 26% comp growth and over 85% EPS growth,” said Laura Alber, president and CEO of Williams-Sonoma , in a press release. .
Net income rose to $ 309 million, or $ 3.92 a share, from $ 166 million, or $ 2.10 a share, a year earlier.
Excluding items, Williams-Sonoma earned $ 3.95 per share, above the $ 3.39 per share expected by analysts polled by Refinitiv.
Revenue increased 24% to $ 2.29 billion from $ 1.84 billion a year ago, exceeding expectations of $ 2.18 billion.
Growth was driven by a 47.9% jump in e-commerce revenue, with approximately 70% of total revenue coming from the e-commerce business.
In-store sales for the entire company were up 25.7% in the last quarter, with all brands posting double-digit gains.
The eponymous brand, Williams-Sonoma, reported sales at the same store were up 26.2%. Pottery Barn as well as Pottery Barn Kids and Teen reported a 25.7% increase in sales in the same store. West Elm followed with a 25.2% increase in sales in the same store.
For fiscal year 2021, the retailer expects retail traffic to recover and inventory levels to improve.
The company said it expects its performance to be in line with its long-term financial goals, which call for medium to high single-digit revenue growth.
Even with vaccination coverage rising across the country and routines slowly returning to normal, the retailer remains optimistic about the long-term growth of its brands.
Alber expects the retailer to get a boost from favorable macro trends that will support his business in the long run. She mentioned high consumer confidence, a strong housing market, a shift to e-commerce and the expectation that people will continue to work from home more time in the future.
During its earnings call, the company also talked about a wide variety of merchandise.
“With more people getting vaccinated, as travel begins, as schools open up, we have a significant trade in equipment and luggage. We expect people to open their homes more, so our restaurants and entertainment options are ready for that,” says Felix. Carbullido, the company’s executive vice president and chief marketing officer.
The company also added that the working from home lifestyle, which is expected to continue after the pandemic, will contribute to the growth of its furniture brands as more people want to buy desks and other supplies.
Williams-Sonoma said it will increase its dividend by 11.3% to 59 cents a share. Meanwhile, the board approved plans to buy back $ 1 billion in stock. The new repurchase plan will replace the previous approval and will take effect on March 17.
Read the full income version here.