Williams-Sonoma Inc. Earnings: After Three Quarters of Expanding, Margins Shrink, but Net Income Climbs
Williams-Sonoma Inc. (NYSE:WSM) reported its results for the fourth quarter. Williams-Sonoma is a retailer of products for the home. The retail segment of its business sells products through five retail store concepts: Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm and Williams-Sonoma Home.
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Williams-Sonoma Earnings Cheat Sheet for the Fourth Quarter
Results: Net income for Williams-Sonoma Inc. rose to $122.6 million ($1.17 per share) vs. $113.4 million ($1.05 per share) in the same quarter a year earlier. This marks a rise of 8.1% from the year-earlier quarter.
Revenue: Rose 6.1% to $1.27 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Williams-Sonoma Inc. beat the mean analyst estimate of $1.13 per share. Analysts were expecting revenue of $1.25 billion.
Quoting Management: Laura Alber, President and Chief Executive Officer commented, “Fiscal 2011 was a year of milestones – both in terms of operational performance and progress against our long-term growth initiatives. Through strong execution and a superior multi-channel strategy, we delivered record earnings and profitability in a promotional environment, never losing sight of our mission to enhance our customers’ lives at home.”
The company has now seen its net income increase for three consecutive quarters. In the third quarter, net income rose 18.9% and in the second quarter, the figure rose 27.8%.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the third quarter, by one cent in the second quarter, and by 2 cents in the first quarter.
Revenue has increased for four consecutive quarters. Revenue increased 6.3% to $867.2 million in the third quarter. The figure rose 5.1% in the second quarter from the year earlier and climbed 7.4% in the first quarter from the year-ago quarter.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 34 cents a share to 33 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $2.26 a share to $2.20 over the last ninety days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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