Williams-Sonoma Inc.(NYSE:WSM), a retailer of home products, trimmed
its fourth quarter earnings view, citing more promotional pricing
environment during the holiday season.
The company lifted its quarterly cash dividend by 29 percent to $0.22
per share, payable on February 24, 2022 to shareholders of record as of
the close of business on January 27, 2012. In addition, the company
announced a new $225 million stock repurchase program to be completed in
fiscal 2012.
“Holiday comparable brand revenues increased 4.9% on top of 11.3%
last year. Our home furnishings brands had strong performance,
particularly West Elm and Pottery Barn," said chief executive Laura
Alber. Williams-Sonoma faced greater challenges on a year-over-year
basis given the heavy market discounting on nationally branded products.
For the 8-week holiday period ended December 25, 2011, net revenue
grew 4.2 percent to $901 million, including a comparable brand revenue
increase of 4.9 percent.
The San Francisco, California-based company now expects earnings per
share in the range of $1.10 to $1.15 from prior expectations of $1.15 to
$1.20. Revenue is now projected to be between $1.235 billion and $1.255
billion from $1.24 billion to $1.265 billion estimated earlier.
For the full year, the company cut its non-GAAP earnings view to
$2.16 to $2.21 from prior forecast of $2.21 to $2.26. Revenue is now
projected to be between $3.689 billion and $3.709 billion from previous
outlook of $3.694 billion to $3.719 billion.
WSM, which has been trading in the 52-week range between $27.90 and $45.48, ended Wednesday's regular trading at $39.08.
