Williams-Sonoma Stock Surges After Q4 Results, Increases Dividend By 10%, Authorizes $1.5B Stock Buyback

Williams-Sonoma, Inc. WSM reported fourth-quarter revenue growth of 9.1% year-over-year to $2.5 billion, missing the consensus of $2.58 billion.
Comparable brand revenue growth was 10.8%, including West Elm at 18.3%, Pottery Barn at 16.2%, and Williams Sonoma at 4.5%, on top of 26.2% last year.
The gross margin expanded by 290 bps to 45%. The operating income increased to $524.57 million (+30.5% Y/Y), and the margin expanded by 344 bps to 21%.
Adjusted EPS improved to $5.42, beating the consensus of $4.82.
WSM’s liquidity stood at $850 million in cash and over $1 billion in operating cash flow for the year ended January 30, 2022.
Dividend: Williams-Sonoma Board authorized a 10% increase in the quarterly cash dividend to $0.78 per share, payable on May 27, 2022, to stockholders of record as of the close of business on April 22, 2022.
Buyback: The Board also approved a new $1.5 billion stock repurchase authorization, effective as of March 16, 2022. This supersedes the ~$750 million that remained outstanding under the current stock repurchase authorization.
FY22 Outlook: Williams-Sonoma expects financial performance to be in line with long-term financial guidance of mid-to-high single-digit annual net revenue growth, increasing revenues to $10 billion by FY24.
It expects operating margins relatively in line with the FY21 operating margin.
Price Action: WSM shares are trading higher by 8.3% at $165.10 during the post-market session on Wednesday.

Earnings Calendar