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Williams-Sonoma 8-K Report, Financial Results (Mar 13, 2024)

Reports
Earnings & Results·Other Events·Exhibits & Filings
Filing Date
Filed March 13, 2024
Period End
March 13, 2024
Security
WSM
In the record · 2016–202610-K1110-Q328-K84

WSM filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 84 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jan ’18Jan ’18
  2. Material agreement8-K · Aug ’20Aug ’20
  3. Leadership change8-K · Sep ’22Sep ’22
  4. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed March 13, 2024. Cited figures are marked; the original filing is the authoritative source.

Williams-Sonoma, Inc. (NYSE: WSM) reported fourth-quarter and fiscal 2023 results for the fiscal year ended January 28, 2024, and announced a 26% increase in its quarterly cash dividend to $1.13a per share along with a new $1 billion stock repurchase authorization.

For Q4 2023, net revenues were $2.28 billionb versus $2.45 billion a year earlier, comparable brand revenue declined 6.8%, operating margin was 20.1%, and diluted EPS was $5.44. For fiscal 2023, net revenues were $7.75 billion (down from $8.67 billion), comparable brand revenue declined 9.9%, GAAP operating margin was 16.1%, and GAAP diluted EPS was $14.55 (non-GAAP diluted EPS $14.85). Cash and cash equivalents ended the year at $1.26 billion, and operating cash flow was $1.68 billion.

The company returned $545 millionc to stockholders in fiscal 2023, including $313 million in share repurchases and $232 million in dividends. Management's fiscal 2024 outlook calls for net revenue growth of -3% to +3%, comparable brand revenue of -4.5% to +1.5%, and an operating margin of 16.5% to 16.8%. Fiscal 2024 is a 53-week year, which the company expects to add 150 basis points to revenue growth and 10 basis points to operating margin.

The filing notes that the financial results are preliminary because the Form 10-K had not yet been filed. The Form 8-K furnishes the earnings press release under Item 2.02 and reports the dividend and repurchase actions under Item 8.01.

The new $1 billiond repurchase authorization supersedes the remaining amount under the prior program and is effective March 14, 2024. The increased dividend is payable May 24, 2024, to holders of record as of April 19, 2024.

02—Key points

Key Highlights

  1. Fiscal 2023 net revenues were $7.75 billion, down from $8.67 billion, with comparable brand revenue declining 9.9%.
  2. GAAP operating margin for fiscal 2023 was 16.1% (non-GAAP 16.4%), within the company's stated 16% to 16.5% range.
  3. Q4 2023 comparable brand revenue declined 6.8%, while Q4 operating margin expanded to 20.1% from 19.2% a year earlier.
  4. Quarterly dividend raised 26% to $1.13 per share, payable May 24, 2024 to holders of record as of April 19, 2024.
  5. New $1 billion stock repurchase authorization supersedes the remaining amount under the prior program, effective March 14, 2024.
  6. Fiscal 2024 outlook: net revenue growth of -3% to +3%, comparable brand revenue of -4.5% to +1.5%, and operating margin of 16.5% to 16.8%.
  7. Year-end cash of $1.26 billion and operating cash flow of $1.68 billion for fiscal 2023; the company returned $545 million to stockholders during the year.

03—Questions

Frequently Asked Questions

  1. How did Williams-Sonoma perform in fiscal 2023 compared with the prior year?

    Net revenues were $7.75 billion versus $8.67 billion, and comparable brand revenue declined 9.9%. GAAP operating income was $1.24 billion, a 16.1% operating margin, compared with $1.50 billion and 17.3% in fiscal 2022. GAAP diluted EPS was $14.55, compared with $16.32.

  2. What is the new dividend and how long will it be paid?

    The Board raised the quarterly cash dividend 26%, or $0.23, to $1.13 per share. It is payable May 24, 2024 to stockholders of record as of the close of business on April 19, 2024. The company said it has increased dividends for fifteen consecutive years.

  3. What does the new $1 billion repurchase authorization change?

    The new authorization of $1 billion supersedes the company's current repurchase authorization and is effective March 14, 2024. The filing states that it results in $1 billion available for future repurchases. The program has no expiration date and may be limited or terminated at any time.

  4. What is management guiding for fiscal 2024?

    Management expects net revenue growth of -3% to +3%, comparable brand revenue of -4.5% to +1.5%, and an operating margin of 16.5% to 16.8%. Fiscal 2024 is a 53-week year, which the company expects to add 150 basis points to revenue growth and 10 basis points to operating margin. Over the long term, the company continues to expect mid-to-high single-digit annual net revenue growth with an operating margin in the mid-to-high teens.

  5. Are the reported fourth-quarter and fiscal 2023 results final?

    Not yet. The company states that it has not filed its Form 10-K for the fiscal year ended January 28, 2024, so all results are preliminary and subject to change for any necessary adjustments or changes in accounting estimates identified before that filing.

04—Continue

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