Williams-Sonoma, Inc. (NYSE:WSM) stock fell 2.09% (As on November 21, 11:33:58 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 24. For the quarter, Williams-Sonoma’s net earnings totaled $248.95 million, an increase of 25.11% compared with net earnings of $237.29 million. By brand, Pottery Barn’s $718 million was 7.71% off the $778 million from a year ago, while West Elm totaled $451 million, down 3.22% from 2023’s $466 million. Comparable brand revenue -2.9%. Gross margin was of 46.7% +230bps to LY driven by (i) higher merchandise margins of +130bps and (ii) supply chain efficiencies of +100bps. Occupancy rate flat to LY, with occupancy costs of $195 million, -2.7% to LY. The company delivered operating income of $321 million with an operating margin of +17.8%. +80bps to LY. Merchandise inventories was +3.8% to the third quarter LY to $1.45 billion. The company maintained strong liquidity position of $827 million in cash and operating cash flow of $254 million, enabling the company to deliver returns to stockholders of $606 million through $533 million in stock repurchases and $73 million in dividends.

WSM in the third quarter of FY 24 has reported the adjusted earnings per share of $1.96, beating the analysts’ estimates for the adjusted earnings per share of $1.77. The company had reported the adjusted revenue decline of 2.86 percent to $1.80 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue of $1.78 billion.

Additionally, in September 2024, the Board of Directors approved a new $1 billion stock repurchase authorization. Including the balance of $293 million remaining under the March 2024 program, the total stock repurchase authorization is currently $1.3 billion. On July 9, 2024, the Company effected a 2-for-1 stock split of its common stock through a stock dividend.

In fiscal 2024, the company now expects annual net revenue decline in the range of -3% to -1.5%, with comps in the range of -4.5% to -3% in fiscal 2024. Over the long term, it continues to expect mid-to-high single-digit annual net revenue growth with an operating margin in the mid-to-high teens. For fiscal 2024, the company is raising the guidance on operating margin 40 bps to be in the range of 17.8% to 18.2%. For fiscal 2024, the company expects annual interest income to be approximately $50 million and the annual effective tax rate to be approximately 25.0%.