Williams-Sonoma Q4 Results Beat Street View; Shares Up 13%

(RTTNews) - Shares of Williams-Sonoma Inc. (WSM) gained nearly 13% in extended session Wednesday after the luxury home furnishing retailer's fourth-quarter profit trumped Wall Street view driven by strong sales.

Fourth-quarter net earnings were $308.9 million or $3.92 per share, up from $166.0 million or $2.10 per share last year.

Adjusted earnings for the quarter were $3.95 per share, up from $2.13 per share last year. On average, 20 analysts polled by Thomson Reuters expected earnings of $3.39 per share. Analysts' estimates typically exclude one-time items.

Revenues for the fourth quarter rose to $2.29 billion from $1.84 billion last year. Analysts had a consensus revenue estimate of $2.17 billion.

Comparable brand revenue growth increases to 25.7%, driven by all brands, including Williams Sonoma at 26.2%, Pottery Barn at 25.7%, Pottery Barn Kids and Teen at 25.7% and West Elm at 25.2%

"In Q4, despite shipping constraints and low retail traffic, we delivered another quarter of accelerating revenue and profitability with 26% comp growth and over 85% EPS growth. This strong end to the year, combined with our outperformance throughout 2020, drove record fiscal year revenue growth, substantial operating margin expansion and EPS that was almost double that of last year," said Laura Alber, President and Chief Executive Officer.

Looking forward, the company said it expects fiscal year 2021 financial performance to be in line with long-term financial guidance of mid-to-high single digit net revenue growth and year-over-year non-GAAP operating margin expansion.

WSM closed Wednesday's trading at $136.39, down $2.11 or 1.52%, on the NYSE. The stock, however, jumped $17.71 or 12.98% in the after-hours trading.