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Williams-Sonoma 4th-Quarter Profit Rose 9.1%

03/19 04:47 PM

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Williams-Sonoma Inc.'s (WSM:$45.21,00$-0.34,00-0.75%) fiscal fourth-quarter earnings rose 9.1% as the housewares and furniture company announced that President Richard Harvey of its namesake brand will leave the company in early May.

The company's board also authorized a 41% increase in Williams-Sonoma's (WSM:$45.21,00$-0.34,00-0.75%) quarterly dividend to 31 cents a share and approved a $750 million stock repurchase program.

The parent company of Pottery Barn (WSM:$45.21,00$-0.34,00-0.75%) and West Elm saw its shares up 5.6% at $ 47.73 in recent after-hours trading. Through Tuesday's close, the stock is down 6% from its all-time high in early November.

Williams-Sonoma (WSM:$45.21,00$-0.34,00-0.75%) has posted steady revenue growth over the past three years, but struggled with an underperforming namesake brand and an intensely competitive environment.

Mr. Harvey, a 30-year veteran of the company, will be succeeded by Janet Hayes, who has been president of the company's Pottery Barn Kids and PBteen businesses since 2010 and an executive with the company since 2007. Her appointment is effective Wednesday.

Prior to joining Williams-Sonoma (WSM:$45.21,00$-0.34,00-0.75%) she held roles at American Eagle Outfitters Inc. (AEO), Nike Inc. (NKE) and Gap Inc. (GPS). Meanwhile, Sandra Stangl, president of Pottery Barn (WSM:$45.21,00$-0.34,00-0.75%) , will expand her role to include Pottery Barn Kids and PBteen.

President and Chief Executive Laura Alber credited Mr. Harvey with providing " vision for the Williams-Sonoma brand over the past three decades as it grew from a few California stores to the iconic, multichannel business that it is today."

For the new fiscal year, the company projected per-share earnings of $2.65 to $2.75 on revenue of $4.20 billion to $4.28 billion. Analysts polled by Thomson Reuters most recently expected $2.82 a share and $4.23 billion in revenue.

For the current quarter, the company forecast per-share earnings of 33 cents to 36 cents on revenue of $850 million to $870 million. Analysts polled by Thomson Reuters most recently expected 39 cents and $868 million, respectively.

For the quarter ended Feb. 3, Williams-Sonoma (WSM:$45.21,00$-0.34,00-0.75%) reported a profit of $133.7 million, or 1.34 a share, up from $122.6 million, or $1.17 a share, a year earlier. Revenue increased 11% to $1.41 billion. The latest quarter included an additional week.

Williams-Sonoma (WSM:$45.21,00$-0.34,00-0.75%) had projected earnings of $1.21 to $1.28 on revenue of $1.36 billion to $1.4 billion.

Gross margin was flat at 41.3%.

Total same-store sales rose 4%. At West Elm, comparable-brand sales were up 19%. Pottery Barn's (WSM:$45.21,00$-0.34,00-0.75%) comparable-brand sales increased 4% while Pottery Barn Kids posted a 7.7% increase. However, at Williams-Sonoma's (WSM:$45.21,00$-0.34,00-0.75%) namesake stores, comparable-brand sales dropped 1.6%.

Direct-to-consumer sales, including catalog and online sales, rose 19%.

Write to Tess Stynes at [e-mail]

Corrections & Amplifications

This item was corrected at 8:53 a.m. EDT, March 20, 2013 because it misstated analysts polled by Williams-Sonoma (WSM:$45.21,00$-0.34,00-0.75%) projected earnings of $1.21 to $1.28 on revenue of $1.36 billion to $1.4 billion. Williams-Sonoma (WSM:$45.21,00$-0.34,00-0.75%) made the forecast.

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03-19-131647ET
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