By Mackenzie Tatananni
Williams-Sonoma stock was on track to close at a record Wednesday after the company's third-quarter results topped analysts' expectations.
The luxury homeware-maker's stock was up 29% to $177.22 on Wednesday, beating the former record closing high of $162.99 in July. The stock was on pace for its largest one-day rally since Nov. 24, 2008, when it rose almost 40%, according to Dow Jones Market Data.
Revenue jumped to $248.95 million from $237.29 million last year. Adjusted earnings per share climbed 7.1% to $1.96 from $1.83 a year ago, beating expectations for EPS of $1.77.
The company's operating profit margin also rose to 17.8% from 17% in 2023. It increased its forecast for operating margin by 0.4 percentage point to a range of 17.8% to 18.2% for the year.
President and Chief Executive Officer Laura Alber said the results showed the company's strong margin profile "in a difficult environment."
"Our strategy of focusing on returning to growth, enhancing our world-class customer service, and driving margin is working," Alber said in a statement. "And, as we head into the last quarter of the year, we are optimistic and confident about our business."
While third-quarter revenue dipped to $1.8 billion from $1.85 billion a year prior, it surpassed the $1.78 billion consensus forecast on Wall Street.
Williams-Sonoma noted that "the continuing impact of inflation and measures to control inflation" and "the impact of current and potential future tariffs" could weigh heavily on earnings.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
November 20, 2024 13:29 ET (18:29 GMT)
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