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WSM Tops Q4 Earnings & Revenue Estimates, Lifts Dividend
WSMWilliams-Sonoma(WSM) ZACKS·2025-03-20 17:55

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,surpassingtheZacksConsensusEstimateof3.28, surpassing the Zacks Consensus Estimate of 2.91 by 12.7%, and increased from 2.72intheprior−yearquarter[4]−Netrevenuestotaled2.72 in the prior-year quarter [4] - Net revenues totaled 2.46 billion, exceeding the consensus mark of 2.34billionby5.42.34 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 7.71billion[9]CashFlowandShareholderReturns−Attheendoffiscal2024,cashandcashequivalentsstoodat7.71 billion [9] Cash Flow and Shareholder Returns - At the end of fiscal 2024, cash and cash equivalents stood at 1.21 billion, down from 1.26billioninthepreviousyear[11]−Thecompanyreturnednearly1.26 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]