Williams-Sonoma (WSM) - Get Williams-Sonoma, Inc. Report beat estimates, boosted its guidance and raised its dividend Wednesday, as sales jumped nearly 40% in the company’s fiscal second quarter, which ended Aug. 1.
The home décor and supply company reported non-GAAP diluted earnings of $3.34 a share on revenue of $1.95 billion.
In the same period a year ago, the company posted earnings of $1.80 a share on sales of $1.5 billion.
Williams-Sonoma had been expected to report earnings of $2.59 a share, on sales of $1.8 billion, based on a FactSet survey of 24 analysts.
"The momentum we are seeing in our business and our winning positioning set us up to continue to take share in a fractured market,” said Laura Alber, President and CEO of Williams-Sonoma in a statement. “We see a clear path to beating our previous revenue and profitability targets and we are raising our full year revenue outlook again, with revenue growth now expected to be in the high teens to low twenties and operating margins now expected to be in the range of 16% to 17%,” Alber added.
The company’s sales gains in the period were led by its West Elm and Pottery Barn brands. Sales at West Elm rose $199 million, or 51.1% to a total of $580 million during the quarter. Sales at Pottery Barn were up 29.6% to $732 million.
Williams Sonoma now expects to achieve its long-term goal of $10 billion in revenues in 2024, one year faster than previously expected, the company said in the statement.
The company increased its share buyback program to $1.25 billion from the remaining $500 million in place. It also raised its quarterly dividend 20% to 71 cents a share.
Shares of Williams Sonoma rose sharply in after-hours trading. The stock gained $24.16, or 14.15%, to $194.90 in late trading. During the regular session shares rose 0.7%.