What happened
Shares of Williams-Sonoma (WSM 1.63%) rose 5.4% on Thursday after the home goods retailer delivered solid fourth-quarter financial results.
NYSE: WSM
Key Data Points
So what
Williams-Sonoma's revenue increased 9% year over year to $2.5 billion. The gains were broad-based. Comparable sales across the company's West Elm, Pottery Barn, and namesake Williams Sonoma brands grew by 18.3%, 16.2%, and 4.5%, respectively.
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Moreover, Williams-Sonoma is becoming more profitable as it scales its revenue base. Its gross margin improved by 2.9 percentage points to 45%, while its operating margin expanded by 3.5 percentage points to 21%.
All told, Williams-Sonoma's net earnings jumped 30% to $403 million. And its earnings per share, which were boosted by stock buybacks, surged 38% to $5.41.
"These results reflect the resilience in our business model, as we successfully navigated unprecedented challenges within the supply chain, material and labor shortages, and capacity limitations from our incredible consumer demand," CEO Laura Alber said in a press release.
Now what
These strong results, combined with promising ongoing sales trends, prompted Williams-Sonoma to issue an upbeat financial forecast. Management sees "mid-to-high single-digit" revenue growth in fiscal 2022, with sales growing to $10 billion by 2024. The company also expects its operating margin to remain stable compared to fiscal 2021.
Better still, Williams-Sonoma's robust cash generation -- operating cash flow checked in at over $1 billion in 2021 -- allowed it to boost its quarterly dividend by 10%. Its board of directors also authorized a new $1.5 billion share repurchase program.
"These actions reflect our commitment to execution and the resulting return of value to our shareholders," Alber said.
