The 10-second takeaway
For the quarter ended Feb. 3 (Q4), Williams-Sonoma met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew significantly.
Gross margins increased, operating margins contracted, net margins dropped.
Williams-Sonoma recorded revenue of $1.41 billion. The 24 analysts polled by S&P Capital IQ looked for a top line of $1.40 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $1.27 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.34. The 27 earnings estimates compiled by S&P Capital IQ predicted $1.29 per share. GAAP EPS of $1.34 for Q4 were 16% higher than the prior-year quarter's $1.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.3%, much better than the prior-year quarter. Operating margin was 15.0%, 20 basis points worse than the prior-year quarter. Net margin was 9.5%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $867.1 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $4.24 billion. The average EPS estimate is $2.78.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 253 members out of 348 rating the stock outperform, and 95 members rating it underperform. Among 97 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give Williams-Sonoma a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Williams-Sonoma is outperform, with an average price target of $48.14.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Williams-Sonoma. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.