Analysts revised the price forecast for Williams-Sonoma, Inc. WSM following fourth-quarter results reported on Wednesday.The company reported revenue grrowth of 8% year over year to $2.46 billion, beating the consensus of $2.35 billion.Adjusted earnings per share of $3.28 came above the analyst consensus of $2.93.For 2025, Williams-Sonoma net revenue is expected to range from -1.5% to +1.5%, comps from flat to +3.0%, and operating margin between 17.4% and 17.8%, including a 20bps impact from the prior year’ ...

Core Insights - Williams-Sonoma Inc. (WSM) reported strong fourth-quarter fiscal 2024 results, with earnings and net revenues exceeding expectations and showing year-over-year growth [1][2] Financial Performance - Earnings per share (EPS) reached $3.28, surpassing the Zacks Consensus Estimate of $2.91 by 12.7%, and increased from $2.72 in the prior-year quarter [4] - Net revenues totaled $2.46 billion, exceeding the consensus mark of $2.34 billion by 5.4% and reflecting an 8% year-over-year growth [5] - Comparable store sales (comps) rose by 3.1%, a significant improvement from a decline of 6.8% in the previous year [5] Operational Highlights - The gross margin was reported at 47.3%, exceeding projections and expanding by 130 basis points year-over-year due to improved merchandise margins and supply-chain efficiencies [7] - Selling, general and administrative expenses were 25.8% of net revenues, better than projected, reflecting a year-over-year improvement [8] - The operating margin expanded to 21.5%, up 140 basis points from the previous year, indicating strong operational efficiency [8] Annual Summary - For fiscal 2024, WSM experienced a 1.6% decline in comparable brand revenue, a notable improvement from a 9.9% decline in fiscal 2023 [9] - The company achieved a record annual operating margin of 17.9% and a full-year EPS increase of 14.4% to $8.50, despite a slight decline in net revenues to $7.71 billion [9] Cash Flow and Shareholder Returns - At the end of fiscal 2024, cash and cash equivalents stood at $1.21 billion, down from $1.26 billion in the previous year [11] - The company returned nearly $1.1 billion to shareholders through stock repurchases and dividends [11] Future Guidance - For fiscal 2025, WSM anticipates annual net revenues to range from -1.5% to +1.5%, with comparable brand revenue growth expected to be flat to +3.0% [12] - Operating margin guidance is projected between 17.4% and 17.8%, with long-term expectations of mid-to-high single-digit revenue growth [12]

Williams-Sonoma, Inc. WSM released upbeat results for its fourth quarter on Wednesday. Williams-Sonoma reported quarterly earnings of $3.28 per share which beat the analyst consensus estimate of $2.93 per share. The company reported quarterly sales of $2.46 billion which beat the analyst consensus estimate of $2.35 billion. "This success was fueled by the strength of our operating model, our standout seasonal offerings, our impactful collaborations, and a strong improvement in both retail and online furnitu ...

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Financial Data and Key Metrics Changes - In Q4 2024, the company reported a positive comp of 3.1%, exceeding expectations, with an operating margin of 21.5% and earnings per share of $3.28, marking a 20.6% increase year-over-year [6][7][58] - For the full year 2024, net revenues reached $7.7 billion, with a full-year comp of negative 1.6% and a record annual operating margin of 17.9% [9][58][62] - The company ended the year with a cash balance of $1.2 billion and no debt, with merchandise inventory at $1.3 billion, up 6.9% year-over-year [63][64] Business Line Data and Key Metrics Changes - Pottery Barn experienced a negative 0.5% comp in Q4 but had a positive 37.6% comp over five years, with a focus on reducing promotional activity and improving margins [24][25] - The Williams-Sonoma brand reported a positive comp of 5.7% in Q4, driven by strong retail execution and product innovation [31][32] - The B2B segment achieved over $1 billion in revenues with a 10% comp, marking a record-breaking performance [35] Market Data and Key Metrics Changes - Retail stores delivered a positive 7% comp in Q4, while e-commerce saw a positive 1.3% comp, with e-commerce constituting nearly 66% of total revenues for the year [52][59] - The company noted strength in key growth markets, including Canada, Mexico, and India, with continued growth in sales and market share [42][43] Company Strategy and Development Direction - The company aims to deliver core brand growth through innovation and partnerships, focusing on a robust non-furniture assortment to mitigate housing market challenges [11][12] - Investments in AI and enhanced design services are part of the strategy to improve customer experience and operational efficiency [17][19] - The company plans to expand its emerging brands and optimize its retail strategy while maintaining a strong focus on customer service and earnings growth [15][20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the foundation laid for growth and profitability despite macroeconomic uncertainties, emphasizing the importance of their strategic initiatives [10][21] - The guidance for 2025 includes expectations for flat to positive 3% comps and operating margins between 17.4% and 17.8%, factoring in current tariffs [23][70][71] Other Important Information - The company generated free cash flow of $1.1 billion in 2024 and returned nearly $1.1 billion to shareholders through share repurchases and dividends [64] - A 16% increase in the quarterly dividend payout to $0.66 per share was announced, marking the 16th consecutive year of increased dividends [73] Q&A Session Summary Question: How does SG&A leverage differ between flat comp and plus 3% comp? - Management indicated that while they do not provide specific guidance on SG&A, they expect some leverage from expense savings to offset gross margin headwinds from tariffs [78][79] Question: How do you see e-commerce versus stores performing in 2025? - Management expressed optimism for both channels, with e-commerce expected to remain around 66% of total revenues [85][86] Question: What is the structural opportunity for higher product margins? - Management highlighted their competitive advantage in design and sourcing, which allows them to navigate tariff impacts effectively while maintaining margins [96][98] Question: What is the impact of tariffs on gross margin? - The guidance includes the full impact of tariffs, with management outlining a plan to offset these through vendor concessions and supply chain efficiencies [110][118] Question: What are the early trends in Q1 2025? - Management noted that while trends are difficult to read due to the late Easter, they remain optimistic based on strong responses to their strategies [128][130]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

For the quarter ended January 2025, Williams-Sonoma (WSM) reported revenue of $2.46 billion, up 8% over the same period last year. EPS came in at $3.28, compared to $2.72 in the year-ago quarter. The reported revenue represents a surprise of +5.35% over the Zacks Consensus Estimate of $2.34 billion. With the consensus EPS estimate being $2.91, the EPS surprise was +12.71%. Comparable store sales - Total - YoY change: 3.1% compared to the -2.2% average estimate based on seven analysts. Number of stores - Pot ...

分组1 - Williams-Sonoma reported quarterly earnings of $3.28 per share, exceeding the Zacks Consensus Estimate of $2.91 per share, and up from $2.72 per share a year ago, representing an earnings surprise of 12.71% [1] - The company achieved revenues of $2.46 billion for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 5.35%, and an increase from $2.28 billion year-over-year [2] - Over the last four quarters, Williams-Sonoma has consistently surpassed consensus EPS estimates four times and revenue estimates three times [2] 分组2 - The stock has underperformed the market, losing about 7% since the beginning of the year compared to the S&P 500's decline of 4.5% [3] - The company's earnings outlook is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $1.76 on revenues of $1.66 billion, and for the current fiscal year, it is $8.53 on revenues of $7.63 billion [7] 分组3 - The Retail - Home Furnishings industry, to which Williams-Sonoma belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, which may impact stock performance [8] - Another company in the same industry, Lovesac, is expected to report quarterly earnings of $1.80 per share, reflecting a year-over-year decline of 3.7%, with revenues projected at $228.65 million, down 8.7% from the previous year [9]

Financial Data and Key Metrics Changes - In Q4, the company reported a positive comp of 3.1%, exceeding expectations, with an operating margin of 21.5% and earnings per share of $3.28 [7][34] - For the full year, net revenues reached $7.7 billion, with a full year comp of -1.6% and a record annual operating margin of 17.9% [8][41] - Q4 gross margin was 47.3%, up 130 basis points year over year, driven by improved merchandise margins and supply chain efficiencies [37][38] Business Line Data and Key Metrics Changes - Pottery Barn experienced a negative comp of -0.5% in Q4 but had a five-year comp of 37.6% [19] - The Williams Sonoma brand reported a positive comp of 5.7% in Q4, with a five-year comp of 35.5% [23] - West Elm saw a substantial improvement with a positive comp of 4.2% in Q4, supported by strong performance in furniture and seasonal textiles [22] Market Data and Key Metrics Changes - The company gained market share despite a challenging housing market, outperforming the industry decline of 2% in Q4 [7] - E-commerce constituted nearly 66% of total revenues for the full year, with a negative comp of -2.5% [42] Company Strategy and Development Direction - The company aims to drive core brand growth through innovation and partnerships, focusing on non-furniture assortments to mitigate housing market challenges [9][10] - B2B is identified as a significant growth driver, leveraging design strengths and commercial-grade product offerings [10][26] - The company plans to enhance customer experiences through investments in design services and AI capabilities [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the foundation laid for growth and profitability despite macroeconomic uncertainties [8][32] - The guidance for 2025 anticipates comps to be flat to positive 3%, with operating margins between 17.4% and 17.8% [18][50] Other Important Information - The company generated free cash flow of $1.1 billion in 2024 and returned nearly $1.1 billion to shareholders through share repurchases and dividends [45][46] - The company plans to spend between $275 million and $300 million in capital expenditures in 2025, focusing on e-commerce and supply chain efficiency [52] Q&A Session Summary Question: How do you see SG&A leverage on a flat comp versus a plus 3% comp? - Management indicated that while specific guidance is not provided, they expect some leverage in SG&A from expense savings to offset gross margin headwinds from tariffs [58][60] Question: How do you see e-commerce versus stores performing in 2025? - Management expressed optimism about both channels, with e-commerce expected to remain around 66% of total revenues [63] Question: What is your tariff posture embedded in the guide? - The guidance includes the full impact of tariffs, with proactive measures in place to offset these costs through vendor concessions and supply chain efficiencies [90][92] Question: Have you seen any weakness in consumer spending? - Management noted that their strategies are resonating with consumers, particularly in non-furniture categories, and they are optimistic about the upcoming quarters [88][102] Question: What are your plans for the store base in 2025? - Management emphasized the importance of retail stores as profit centers and brand billboards, indicating a positive outlook for the retail business [108]

Financial Performance - Q4 comparable brand revenue increased by 3.1%[5] - Record Q4 operating margin reached 21.5%, with diluted EPS of $3.28, up 20.6% year-over-year[5][2] - Full-year fiscal 2024 operating margin was a record 17.9%, with annual diluted EPS of $8.50[2] - Operating income for fiscal 2024 was $1.43 billion, with an operating margin of 18.6%[9] - Net earnings for the fiscal year ended February 2, 2025, were $1,125,251, a 18.5% increase from $949,762 in the prior year[24] - Basic earnings per share (EPS) rose to $8.91 for the fiscal year ended February 2, 2025, compared to $7.35 in the previous year[24] - Operating income for the fiscal year ended February 2, 2025, was $1,430,184 thousand, reflecting an increase from $1,244,193 thousand the previous year, marking a growth of about 15%[31] - Non-GAAP diluted EPS for the fiscal year ended February 2, 2025, was $8.79, compared to $7.43 for the previous year, representing an increase of approximately 18.1%[31] Revenue and Growth - Fiscal 2025 outlook projects annual net revenues to range from -1.5% to +1.5%, with comparable sales expected to be flat to +3.0%[9] - Net revenues for the fourteen weeks ended February 2, 2025, were $2,462,218, a 8.0% increase from $2,278,937 for the thirteen weeks ended January 28, 2024[21] - Total net revenues for the fiscal year ended February 2, 2025, were $7,711,541, a slight decrease of 0.5% from $7,750,652 in the prior year[24] - Pottery Barn's comparable brand revenue declined by 6.2% for the fiscal year 2024, while Williams Sonoma saw a growth of 2.4%[24] Margins and Profitability - Gross margin for Q4 was 47.3%, up 130 basis points year-over-year, driven by occupancy leverage, higher merchandise margins, and supply chain efficiencies[5] - Gross profit margin improved to 47.3% for the fourteen weeks ended February 2, 2025, compared to 46.0% for the same period last year[21] - The company reported a gross profit of $1,165,625 thousand for the fourteen weeks ended February 2, 2025, with a gross margin of 47.3%, compared to 46.0% for the thirteen weeks ended January 28, 2024[31] Expenses and Costs - SG&A expenses for Q4 totaled $635 million, an increase of 7.6% year-over-year, with an SG&A rate of 25.8%[5] - Selling, general and administrative expenses for the fourteen weeks ended February 2, 2025, were $635,484 thousand, accounting for 25.8% of revenues, compared to 25.9% in the previous period[31] - The company incurred exit costs of $17.9 million during Q1 2023, primarily related to the closure of a West Coast manufacturing facility[31] Cash and Liquidity - The company maintained a strong liquidity position with $1.2 billion in cash and $1.4 billion in operating cash flow[9] - Cash and cash equivalents decreased to $1,212,977 as of February 2, 2025, from $1,262,007 a year earlier[27] - Cash in excess of $200 million was reported at $1,012,977 thousand as of February 2, 2025, compared to $1,062,007 thousand the previous year[34] Shareholder Returns - Quarterly dividend increased by 16% to $0.66 per share[7] - The company repurchased $807,477 in common stock during the fiscal year, significantly higher than $313,001 in the previous year[30] Future Outlook - Long-term expectations include mid-to-high single-digit annual net revenue growth and operating margins in the mid-to-high teens[9] - The effective tax rate for the fiscal year ended February 2, 2025, was 24.3%, consistent with the previous year's rate of 25.4%[32] - The return on invested capital (ROIC) for the fiscal year ended February 2, 2025, was 54.0%, up from 45.0% in the prior year, indicating improved capital efficiency[34] - Total assets as of February 2, 2025, were $5,301,607 thousand, a slight increase from $5,273,548 thousand as of January 28, 2024[34]