Williams-Sonoma stock rocketed to a record high early Wednesday after the high-end home furnishing goods retailer cleared Q3 views and lifted its guidance.
Williams-Sonoma reported a 7.1% increase in earnings to $1.96 per share, beating FactSet estimates for $1.77 per share. Revenue slid to $1.8 billion from $1.85 billion, but still topped estimates for $1.77 billion.
Comparable brand sales fell 2.9% for the quarter, but managed to beat views for a 3.7% decline. Merchandise inventories rose 3.8% to $1.45 billion.
The company's board of directors also, in September, authorized a new $1 billion stock repurchase program.
CEO Laura Alber said in the earnings release that Williams-Sonoma continued to see improving sales trends, market share gains and "strong profit," despite operating in a "difficult environment" during the quarter.
"Our strategy of focusing on returning to growth, enhancing our world-class customer service, and driving margins is working," Alber said in the release. "As we head into the last quarter of the year, we are optimistic and confident about our business The fourth quarter is the time of year where we shine. And, therefore, we are raising our full-year guidance."
Williams-Sonoma now expects 2024 net revenue to decline 1.5% to 3%, narrowed from prior expectations of a 1.5% to 4% drop. The company also expects comparable sales to range from a 3% to 4.5% decline, improving slightly from its previous guidance for a 3% to 5.5% decline.
Williams-Sonoma Stock
WSM stock rallied 27.5% Wednesday, and peaked intraday at a new record high of 181.42.
Shares have rebounded about 40% from their early November low. Williams-Sonoma has soared nearly 74% so far this year.
Elsewhere, Target tumbled more than 21% Wednesday after posting a huge earnings miss.
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