WilliamsSonoma Inc Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-22
Williams-Sonoma, Inc. Reports Second Quarter 2024 Financial Results
Williams-Sonoma, Inc. (NYSE:WSM) today reported its financial results for the second quarter ended July 28, 2024, noting strong overall performance with key profitability metrics exceeding estimates.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | QoQ Change | YoY Change | Consensus Estimate |
|---|---|---|---|---|---|
| Total Revenue | $1.81B | $1.83B | -1.1% | -1.1% | $1.81B |
| Earnings Per Share (EPS) | $1.74 | $1.56 | +11.5% | +11.5% | $1.60 |
| Operating Margin | 16.2% | 14.4% | +160 bps | +160 bps | N/A |
| Gross Margin | 46.2% | 40.7% | +550 bps | +550 bps | N/A |
Williams-Sonoma, Inc. reported a total revenue of $1.81 billion for Q2 2024, slightly down from $1.83 billion in Q2 2023 but matching the Wall Street consensus estimate. The company achieved an EPS of $1.74, surpassing the consensus estimate of $1.60. Despite a slight year-over-year drop in revenue, the company significantly improved its operating margin to 16.2%, reflecting a robust financial performance.
Revenue Performance by Segment
| Segment | Q2 2024 Revenue | Previous Guidance |
|---|---|---|
| Williams-Sonoma | -3.3% | N/A |
Williams-Sonoma’s comparable brand revenue decreased by 3.3% in Q2 2024. While this segment reported a decline, the company has successfully maintained a high profitability margin, offsetting the lower revenue trend.
Key Operational Data
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Merchandise Inventories | $1.2B | N/A |
| Cash and Operating Cash Flow | $1.3B | N/A |
| Stock Repurchases | $130M | N/A |
| Dividends | $73M | N/A |
The company maintained strong liquidity with $1.3 billion in cash and operating cash flow of $246 million. Additionally, Williams-Sonoma returned $203 million to shareholders through stock repurchases and dividends.
Comments from CEO and Financial Outlook
Laura Alber, President and Chief Executive Officer, expressed satisfaction with the company's operating results and emphasized the revised outlook which projects lower revenues but higher operating margins. Alber stated, "We now expect full year revenues to come in at a range of down 4.0% to down 1.5%, but are raising our guidance on operating margin to be in the range of 17.4% to 17.8%."
Dividends and Share Repo Program
Williams-Sonoma announced the continuation of its dividends program and executed $130 million in stock repurchases during Q2 2024.
Forward Guidance
The company revised its 2024 fiscal guidance, now expecting annual net revenue growth in the range of -4.0% to -1.5% with comps in the range of -5.5% to -3.0%. The operating margin guidance has been raised to a range between 17.4% to 17.8%, excluding a one-time adjustment.
Stock Price Movement
Following the earnings release, Williams-Sonoma’s stock experienced a significant drop of approximately 10.59%.
Overall, Williams-Sonoma, Inc. delivered a solid quarterly performance underpinning strong profitability metrics, strategic realignments, and sustained shareholder returns amidst a challenging revenue environment.
