Williams-Sonoma Inc. stock jumped 15% late Wednesday after the retailer topped Wall Street expectations for its second quarter, raised its outlook, and increased its dividend by 20%, saying people continued to focus on their home and home decor in the pandemic.
said it earned $246 million, or $3.21 a share, in the quarter, compared with $135 million, or $1.70 a share, in the year-ago period. Adjusted for one-time items, Williams-Sonoma earned $3.24 a share.
Sales rose to $1.95 billion from $1.49 billion a year ago.
Analysts polled by FactSet expected the company to report EPS of $2.59 on sales of $1.8 billion.
“We do not see any evidence that growth trends are waning, and in fact, we see favorability in the macro environment as more people prioritize their homes and home décor,” Chief Executive Laura Alber said in a statement. The momentum sets Williams-Sonoma to “continue to take share in a fractured market,” she said.
In a separate press release, the retailer said its board has authorized a 20% increase for its dividend to 71 cents a share. The dividend is payable on Nov. 26 to stockholders of record as of the close on Oct. 22.
The board also approved a new $1.25 billion stock buyback authorization, effective Wednesday.
Williams-Sonoma raised its fiscal 2021 revenue growth outlook to between the high-teens and low-20s, percentage-wise, and a non-GAAP operating margin between 16% and 17% thanks to “the strength of our business year-to-date and the macro trends that we believe will continue to benefit our business.”
For the long term, it said it expects net revenue growth in the mid-to-high single digits with “an accelerated path” to $10 billion in net revenues by 2024.
Shares of Williams-Sonoma have gained nearly 65% this year, compared with gains of around 20% for the S&P 500 index
View more information: https://www.marketwatch.com/story/williams-sonoma-stock-rallies-15-on-record-q2-for-retailer-20-dividend-increase-11629926227