Williams-Sonoma, Inc. (WSM), an omnichannel specialty retailer of various products for homes, has declined 7.78% in the premarket trading session. Consequently, WSM is trading at $201.87 at the time of the writing. On Thursday, WSM closed the day at $218.89 after gaining an increase of 4.26% during regular trading hours. The increase was attributable to the announcement of quarterly results.
Why WSM Stock Gain on Thursday?
On Thursday, WSM released the financial results for the third quarter of the fiscal year 2021. The quarter ended on 31st October 2021. The company’s revenues grew an outstanding 16% during the quarter. The growth was driven by the higher sales across all the bands. The GAAP and non-GAAP gross margins remained at 43.7% during the quarter. The GAAP operating margin remained at 16.1% during the quarter, while the non-GAAP operating margin hovered around 16.3% during the quarter. The GAAP diluted EPS was $329 during the quarter, the non-GAAP diluted EPS was $3.32.
Financial Outlook
Alongside the financial results, WSM also reported the financial outlook for the upcoming period. The company believed that the increase in the company’s strength during the year means that it would continue to benefit its business in the long run. The company raised the fiscal year 2021 revenue growth target from 22% to 23%, while the target for non-GAAP operating margin was between the ranges of 16.9% to 17.1%. The company hopes that a continuation of similar performance would aid it to achieve $10 billion in revenue by 2024.
Executive Commentary
Laura Alber, President and Chief Executive Officer of WSM, while commenting on the results said that the company is extremely proud to deliver yet another quarter of strong and monumental performance. She further said that with the strong quarterly results to date, the company is well-positioned in the industry and is confident than ever in the long-term strength of its business policies.
What’s Ahead for WSM?
Stats reveal that since last year or so, WSM stock has leapt gigantically. The stock has surged more than 125% during the last 12 months. The company’s reliance upon innovative strategies has prompted investors to invest in the company. Looking at the future, WSM stock is in a good position to continue the current performance in quarters to come.
