Williams-Sonoma (NYSE:WSM) saw its shares surge more than 27% yesterday after reporting strong third-quarter earnings and raising its annual guidance. The retailer’s performance exceeded expectations, fueled by improving margins and robust share repurchases.
For the third quarter, Williams-Sonoma posted earnings per share of $1.96, beating analyst estimates of $1.77. Revenue reached $1.8 billion, slightly ahead of the Street consensus forecast of $1.79 billion. Comparable sales declined by 2.9% year-over-year, a marked improvement from the 14.6% drop in the same quarter last year and better than the expected 3.36% decline.
Looking ahead, Williams-Sonoma raised its fiscal 2024 guidance to reflect stronger revenue trends and higher operating margin expectations. The company now anticipates an annual net revenue decline of 1.5% to 3.0%, with comparable sales projected to decrease by 3.0% to 4.5%.