Investing.com — Shares in Williams-Sonoma (NYSE:) rocketed more than 23% in premarket trading Wednesday after the company raised its annual outlook and reported better-than-expected Q3 results.
For the third quarter, the retailer reported earnings per share (EPS) of $1.96, beating analyst expectations of $1.77.
Revenue came in at $1.8 billion, just ahead of the consensus estimate of $1.79 billion.
Comparable sales declined 2.9% year-over-year, a notable improvement from the 14.6% drop a year ago and better than the projected decline of 3.36%.
Operating margin for the quarter rose to 17.8%, compared to 17% in the same period last year.
“We are pleased with the results of our third quarter, beating both top and bottom-line expectations,” said Laura Alber, President and CEO of Williams-Sonoma. “The quarter was driven by continued improvement in our sales trend, market-share gains, and strong profit.”
The highlight of the report was guidance. Williams-Sonoma hiked its 2024 outlook “to reflect higher net revenue trends and higher operating margin expectations.”
It now forecasts an annual net revenue decline of 1.5% to 3.0%, with comparable sales expected to decrease by 3.0% to 4.5% for the fiscal year.
Operating margin guidance for fiscal 2024 has also been adjusted upward. Including a 60-basis-point first-quarter adjustment, the operating margin is expected to be between 18.4% and 18.8%. Excluding this adjustment, the margin is projected to range from 17.8% to 18.2%.
Looking further ahead, the company maintains its long-term outlook, expecting mid-to-high single-digit annual net revenue growth with operating margins remaining in the mid-to-high teens.
