01—Abstract
Summary
Summary of the 8-K filed March 19, 2025. Cited figures are marked; the original filing is the authoritative source.
Williams-Sonoma, Inc. (NYSE: WSM) reported results for its fourth quarter and fiscal year ended February 2, 2025 (fiscal 2024), which included a 53rd week.
Fourth-quarter net revenues were $2.46 billiona, up from $2.28 billion, with comparable brand revenue growth of 3.1%. Operating income was $530 million, a record Q4 operating margin of 21.5%, and diluted EPS was $3.28 versus $2.72 in the prior-year quarter. For the full year, net revenues were $7.71 billion, comparable brand revenue declined 1.6%, operating income was $1.43 billion (18.6% margin, a record annual operating margin per the release), and diluted EPS was $8.79, including a $0.29 benefit from an out-of-period freight adjustment of $49 million.
Excluding that adjustment, diluted EPS was $8.50b. The company provided fiscal 2025 guidance for a 52-week year: net revenues of -1.5% to +1.5%, comparable brand revenue of flat to +3.0%, and an operating margin of 17.4% to 17.8%. Management also expects mid-to-high single-digit annual net revenue growth and a mid-to-high teens operating margin over the long term.
Cash returned to stockholders in fiscal 2024 totaled nearly $1.1 billionc, including $807 million in stock repurchases and $280 million in dividends, with $1.2 billion of repurchase authorization remaining. Separately, the Board authorized a 16% increase in the quarterly cash dividend to $0.66 per share, payable May 24, 2025, to holders of record as of April 17, 2025.
The release notes that the company has increased its dividend for sixteen consecutive years. The fourth-quarter and fiscal-year results are described as preliminary until the Form 10-K is filed.
02—Key points
Key Highlights
- Q4 fiscal 2024 net revenues of $2.46 billion vs. $2.28 billion prior year; comparable brand revenue +3.1%, with the 14-week quarter adding an estimated 510bps to revenue growth.
- Record Q4 operating margin of 21.5% (operating income $530 million) and diluted EPS of $3.28, up from $2.72.
- Fiscal 2024 comparable brand revenue declined 1.6%; full-year diluted EPS of $8.79, or $8.50 excluding a $49 million out-of-period freight adjustment.
- Fiscal 2025 guidance: net revenues -1.5% to +1.5%, comps flat to +3.0%, and operating margin 17.4% to 17.8%.
- Quarterly dividend raised 16% ($0.09) to $0.66 per share, payable May 24, 2025, marking sixteen consecutive years of dividend increases.
- Fiscal 2024 shareholder returns of nearly $1.1 billion ($807 million buybacks, $280 million dividends); $1.2 billion of repurchase authorization remaining.
- Cash of $1.21 billion at year-end and operating cash flow of $1.36 billion for fiscal 2024.
03—Questions
Frequently Asked Questions
How did Williams-Sonoma perform in the fourth quarter of fiscal 2024?
Net revenues were $2.46 billion versus $2.28 billion a year earlier, and comparable brand revenue grew 3.1%. Operating income was $530 million, a record Q4 operating margin of 21.5%, and diluted EPS was $3.28 versus $2.72. The company said the extra week contributed an estimated 510bps to revenue growth.
Why did full-year fiscal 2024 EPS differ from the prior guidance level?
Reported diluted EPS was $8.79, which includes a $0.29 per share benefit from a $49 million out-of-period freight adjustment recorded in Q1 fiscal 2024 that corrected over-recognized freight expense in fiscal 2021 through 2023. Excluding this adjustment, diluted EPS was $8.50. The company determined the cumulative amount was not material to any prior period.
What does the company expect for fiscal 2025?
Fiscal 2025 is a 52-week year. The company expects net revenues of -1.5% to +1.5%, comparable brand revenue of flat to +3.0%, and an operating margin of 17.4% to 17.8%. Over the long term, it expects mid-to-high single-digit annual net revenue growth and a mid-to-high teens operating margin.
How much is the dividend increasing, and when is it payable?
The Board authorized a 16% increase in the quarterly cash dividend, to $0.66 per share from $0.57. The dividend is payable May 24, 2025, to stockholders of record at the close of business on April 17, 2025.
How much did Williams-Sonoma return to shareholders in fiscal 2024?
The company returned nearly $1.1 billion, comprising $807 million in stock repurchases and $280 million in dividends. It had $1.2 billion of stock repurchase authorization remaining at year-end.
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