On March 16, Williams-Sonoma Inc. (WSM) reported multiple good news for its investors. These included beat 2021 earnings report, $1.5 billion share buyback authorization, and 10% quarterly increased dividend declaration. Consequently, the stock surged up in the after-hours session.
During the regular trading session, the stock fluctuated between a low of $147.96 and a high of $153.85. The positive anticipation of the earnings caused the stock to trade in the green with a gain of 2.65%. WSM closed the session at a price of $152.45 per share while 2.54 million shares exchanged hands. Following the news, the stock surged up by a further 8.28% in the after-hours. Thus, WSM was trading at a price of $165.07 per share in the after-hours on Wednesday.
The home products retailer, Williams-Sonoma Inc.’s segments include Pottery Barn, West Elm, Williams Sonoma, Pottery Barn Kids and Teens, and Other. Currently, the company’s 74.43 million outstanding shares trade at a market capitalization of $10.83 billion.
WSM’s 2021 Financial Results
Revenue Growth
The company reported a 10.8% growth in revenue for Q4 2021, including 18.3% for West Elm, 16.2% for Pottery Barns, and 4.5% for Williams Sonoma.
For fiscal 2021, the comparable revenue growth was 22.0% which included 33.1%, 23.9%, 11.6%, and 10.5% for West Elm, Pottery Barn, Pottery Barn Kids & Teens, and Williams Sonoma, respectively.
Earnings Per Share
Moreover, the company had a non-GAAP diluted EPS of $5.42 in Q4 and $14.85 in fiscal 2021. The diluted EPS reported a respective growth of 37% and 64% YOY for Q4 and fiscal 2021.
Share Repurchase Authorization
The company’s board also approved a new stock repurchase authorization of $1.5 billion. This new program supersedes the company’s current authorization. Effective as of March 16, the new authorization does not have an expirations date and can be terminated or suspended at the company’s discretion at any time.
WSM’s Quarterly Dividend
In addition, the board also authorized a quarterly cash dividend of $0.78 per share with an increase of 10%. Payable on May 27, 2022, the dividend has a record date of April 22, 2022, for shareholders to be eligible for receiving it.
Other Developments
On March 08, the company announced celebrating women’s day in partnership with Nest Ethical HandcraftTM Program. The company showcased the work of over 3,600 artisans with 400 ethically handcrafted products for the WSM brands. Furthermore, WSM has committed to purchase $50 million in Nest Ethical Handcraft products by 2025.
