Williams-Sonoma (WSM) Tops Q1 EPS by $1.10, Revenues Beat; Raises FY21 Outlook

May 26, 2021 4:19 PM EDT

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Williams-Sonoma (NYSE: WSM) reported Q1 EPS of $2.93, $1.10 better than the analyst estimate of $1.83. Revenue for the quarter came in at $1.75 billion versus the consensus estimate of $1.52 billion.

  • Q1 comparable brand revenue growth accelerates to 40.4%
  • Q1 GAAP operating margin of 15.7%; Q1 non-GAAP operating margin expansion of 950bps to 15.9%
  • Q1 GAAP diluted EPS of $2.90; Q1 Non-GAAP diluted EPS of $2.93

“We are proud to report another record quarter of accelerating revenue and profitability with over 40% comp growth and a 950bps expansion in our non-GAAP operating margin. These results were driven by strength across all of our brands. We are seeing strength in our core businesses and our new growth initiatives have outperformed. As re-openings accelerate across the country, a record number of customers continue to shop with us as they invest in their homes. We are honored to be our customers' destination for their entertaining and home furnishings needs as they welcome friends and family back,” said Laura Alber, President and Chief Executive Officer.

“As a result, we are raising our full year outlook from mid-to-high single digit revenue growth to low-double digit to mid-teen revenue growth and year-over-year operating margin expansion. We believe our business is uniquely positioned to gain market share given our growth strategies and our three key differentiators:

  1. Our in‐house design;
  2. Our digital-first channel strategy; and
  3. Our values.

These differentiators are more relevant than ever with our customers and set us apart from our competition,” Alber continued.

Alber concluded, “As we look ahead, we are confident in our runway for growth and profitability. The goals we have set are driving incremental growth faster than anticipated, our brand differentiators continue to accelerate, and favorable macro trends should continue to benefit our business for the long-term. We are the only home furnishings retailer that’s able to serve customers at scale online and provide the experience and convenience of physical retail with exclusive sustainable products – giving us the unique advantage to gain share for many years to come.”


Fiscal Year 2021

Given the strength of our business year-to-date and the macro trends that we believe will continue to benefit our business, we are raising our fiscal year 2021 outlook to low double-digit to mid-teen net revenue growth and year-over-year non-GAAP operating margin expansion.

Long-Term Financial Guidance

For the long-term, we are planning for net revenue growth of mid-to-high single digits and non-GAAP operating margin expansion. Our strong results, combined with our three key differentiators of in-house design, digital-first channel strategy and values, and the macro trends that should benefit our business over the long-term, give us confidence in these future growth projections and an accelerated path to $10 billion in net revenues and maintaining at least 15% non-GAAP operating margins in the next five years.

For earnings history and earnings-related data on Williams-Sonoma (WSM) click here.

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