Williams-Sonoma stock hits record high following Q4 earnings

Shares of Williams-Sonoma (WSM) have hit a record high after the company posted its fourth-quarter earnings, revealing gains of $5.44 per share against an estimated $5.06 per share. In addition, the home furnishing store will raise its dividends by 26% and implement a $1 billion stock buyback program.

Yahoo Finance Anchors Rachelle Akuffo and Akiko Fujita break down the latest developments for Williams-Sonoma and what it could mean for the company moving forward.

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Editor's note: This article was written by Nicholas Jacobino

Video Transcript

AKIKO FUJITA: Time now to take a look at today's trending ticker. And we're looking at Williams-Sonoma hitting a record high today, after reporting its Q4 earnings, beating the Street's expectations. The homewares retailer boosting its dividend and stock buyback as well. Raising that dividend by 26%. Setting a new $1 billion share repurchase program.

This is a stock, Rachelle, that has absolutely outperformed its peers. The stock up about 40% year-to-date. Certainly seen a big bump. And interesting to hear the company saying that they really did compete here. They saw the big drive-- gains in the quarter on the back of full-price selling. You know, we hear a lot about discounts, but full-price selling here along with supply chain efficiencies pointing to a mid to high single-digit annual what-- revenue net revenue growth they're expecting here, at least in the long term.

RACHELLE AKUFFO: I mean, and especially when you think about the backdrop here. We saw CEO Laura Alber saying that we outperformed in 2023, despite the slowest housing market in several decades and geopolitical unrest. So when you have that macro backdrop and you see a company like this able to really slow some of the bleeding that they saw-- this was their third consecutive quarter of slowing earnings declines. It ended its 3/4 streak of accelerating sales declines.

So clearly, a lot to like here. And, of course, with that 26% dividend raise and a new buyback plan, along with that earnings beat, certainly a lot to like in this story. Especially, you know, Williams-Sonoma not the cheapest price point. So it's not something that the, you know, average person, it's a bit tight on the pockets here. So interesting to see that they're still able to pull ahead here. And clearly, the stock price being rewarded for that.

AKIKO FUJITA: Yeah, and maybe also a very store specific or brand specific story as well. As we've seen, you know, sort of the broader retail space talking about more discounts and talking about a more cautious consumer. So a story that we're gonna continue to watch there.