Hot Retail stock: Williams-Sonoma, Inc. (NYSE: WSM)

Williams-Sonoma, Inc.(NYSE: WSM) stock surged over 2.8% this morning ( as of 9:46AM EDT; Source: Google finance) as the group reported the adjusted earnings per share of $1.55 in the fourth quarter 2016, beating the analysts’ estimates for the adjusted earnings per share of $1.51.

But, the company had reported the adjusted revenue fell 0.3 percent to $1.582 billion in the fourth quarter 2016, missing the analysts’ estimates for revenue of $1.61 billion. The comparable brand revenue in Q4 16 has decreased 0.9% compared to 0.8% growth in Q4 15.

On the segments front, the e-commerce net revenues in Q4 16 increased 2.2% to $809 million from $792 million in Q4 15 and the retail net revenues in Q4 16 has decreased 2.7% to $773 million from $794 million in Q4 15. The company has posted the revenues of over $5 billion, which included another year of double-digit growth across West Elm, the newer businesses Rejuvenation and Mark and Graham, and the company-owned global operations.

Williams-Sonoma has increased 5% the quarterly dividend and it has increased from $0.37 to $0.39 per common share and is payable on May 26th, 2017 to shareholders of record as of the close of business on April 28th, 2017.

During FY 16, Williams-Sonoma has repurchased 2.9 million shares of common stock at an average cost of $52.68 per share and a total cost of approximately $151 million. As of January 29th, 2017, there was approximate $411 million remaining under the company’s current stock repurchase program.

Williams-Sonoma has updated its FY17 earnings guidance and expects the earnings per share to be in the range of $3.45-3.65 for the period, compared to the analysts’ consensus estimate of $3.39. The company expects the revenue in the range of $5.17-5.27 billion, compared to the consensus revenue estimate of $5.11 billion for FY 17. In addition, for FY 17 WSM expects the comparable brand revenue growth 1% – 3%, capital spending in the range of $200 million – $220 million and operating margin in the range 9.4% – 9.6%.

Williams-Sonoma has also updated its Q1 guidance for the earnings per share, and expects it in the range of $0.45-0.50, whereas the analysts are expecting the earnings per share of $0.54. The comparable brand revenue growth is expected in a range of down 1% – up 2% for the first quarter, while the analysts are expecting the revenue of $1.12 billion.

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