Pedestrians walk in front of a Williams-Sonoma Inc. store. in San Francisco, California.
David Paul Morris | Bloomberg | Getty Images
Williams-Sonoma on Wednesday posted fourth-quarter earnings that exceeded analysts’ expectations as consumers continued to buy furniture and kitchen utensils as they spent more time at home during the coronavirus pandemic.
The company’s shares rose more than 11% in expanded trading as the company expects its growth to continue in the following year.
This is what the company reported during the fourth quarter ended Jan. 31, compared to what Wall Street analysts expected, through a Refinitiv survey:
- Earnings per share: $ 3.95 adjusted compared to $ 3.39 expected
- Revenue: $ 2.292 billion vs. 2.188 million euros planned
“In the fourth quarter, despite shipping constraints and low retail traffic, we offered a quarter more accelerating revenue and profitability with 26% growth and 85% EPS growth.” , said Laura Alber, president and CEO of Williams-Sonoma, in a statement.
Net income rose to $ 309 million, or $ 3.92 per share, from $ 166 million, or $ 2.10 per share, a year earlier.
Excluding the articles, Williams-Sonoma earned $ 3.95 per share, surpassing the $ 3.39 per share expected by analysts surveyed by Refinitiv.
Revenue rose 24% to $ 2.292 billion from $ 1.84 billion a year, exceeding expectations of $ 2.188 billion.
Growth was driven by a 47.9% jump in e-commerce revenue, with approximately 70% of total revenue coming from its e-commerce business.
Company-wide in-store sales rose 25.7% in the last quarter, with all of its brands making double-digit gains.
Its eponymous brand, Williams-Sonoma, reported that sales at the same store increased 26.2%. Both Pottery Barn and Pottery Barn Kids and Teen reported a 25.7% increase in sales at the same store. West Elm was far behind with a 25.2% increase in sales at 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 match its long-term financial goals, which require a one-to-one-to-high level of revenue growth.
While vaccination rates are rising nationwide and routines are 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 the favorable macro trends that will support its business in the long run. Among the factors he cited were high consumer confidence, a strong housing market, the shift to e-commerce and expectations that people would continue to spend more time working from home in the future.
During its profit call, the company also talked about a wide range of merchandise.
“With the vaccination of more people, as travel begins to open, as schools begin to open, we have a major equipment and baggage business. We hope people open their homes more, so our restaurants and entertainment are prepared for that, ”said Felix Carbullido, the company’s executive vice president and chief marketing officer.
The company also added that the lifestyle from home, which is expected to continue after the pandemic, will help the growth of its furniture brands as more people seek to buy desks and other supplies.
Williams-Sonoma said it will increase its dividend by 11.3% to 59 cents per share. Meanwhile, his board approved plans to recoup $ 1 billion in shares. The new repurchase plan replaces its prior authorization and will take effect on March 17th.
Read the full version of the winnings here.