Williams-Sonoma Stock Skyrockets 30% on Outlook Boost, Earnings that Beat Estimates

Shares of Williams-Sonoma Inc. (WSM) surged as much as 31% in intraday trading Wednesday, after the retailer posted better-than-expected quarterly results and raised its full-year sales guidance despite what it called a “difficult environment.”

The company behind retail brands including its namesake stores, Pottery Barn and West Elm, reported an adjusted earnings per share (EPS) of $1.96, better than the $1.77  analysts polled by Visible Alpha had expected. Total revenue of $1.8 billion was also above estimates of $1.78 billion.

Williams-Sonoma also updated its fiscal 2024 outlook, saying it expects annual net revenue to decline in the range of 3% and 1.5%, with comparable sales expected to fall between 4.5% and 3%. 

That’s an improvement from its projections made during the second quarter, when it said it expects full-year revenue to decline in the 4%-to-1.5% range and comparable sales to drop between 5.5% and 3%.

Retailer Raises Its Full-Year Operating Margin Outlook

The San Francisco-based company also raised its full-year operating margin projection to a range of 17.8% to 18.2% for the year.

“Our operating results reflect the operational improvements that we have been focused on all year, and demonstrate the strength of our margin profile in a difficult environment,” Chief Executive Officer (CEO) Laura Alber said. 

Like other high-end retailers, Williams-Sonoma has been struggling with consumers watching their spending and putting off big-ticket renovations. 

The company’s shares are up about 77% this year.