Williams-Sonoma Cuts Guidance, Hikes Dividend (WSM)
In another sign that the recent holiday season may not have been a hit with everyone, high-end home furnishings store Williams-Sonoma Inc. (NYSE: WSM) today cut its fourth-quarter and full-year guidance. Fourth-quarter EPS guidance was cut from $1.15-$1.20 to $1.10-$1.15.…
In another sign that the recent holiday season may not have been a hit with everyone, high-end home furnishings store Williams-Sonoma Inc. (NYSE: WSM) today cut its fourth-quarter and full-year guidance. Fourth-quarter EPS guidance was cut from $1.15-$1.20 to $1.10-$1.15. Full-year EPS got whacked from $2.21-$2.26 to $2.16-$2.21.
The company’s CEO blamed the change on discounting, “Williams-Sonoma faced greater challenges on a year-over-year basis given the heavy market discounting on nationally branded products.”
For the first two months of the fourth quarter (November and December) sales rose 4.2% to $9.01 billion. Most of the gain was in catalog direct sales. Retail store revenue dropped -0.6%.
To take out some of the sting, the company also announced a new $225 million stock buyback program and raised the quarterly dividend from $0.17 to $0.22, a jump of 29%.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
