Williams-Sonoma, Inc. is a prominent U.S.-based specialty retailer known for its high-quality home furnishings and kitchenware, operating brands such as Williams Sonoma, Pottery Barn, and West Elm. The company recently reported its fourth quarter and full-year results for fiscal 2024, showing a stable financial performance overall, with a notable improvement in key metrics.

In the fourth quarter, Williams-Sonoma achieved a comparable brand revenue increase of 3.1%, surpassing market expectations and reflecting effective holiday performance across all brand segments. The company recorded net revenues of $2.5 billion for the quarter, driven by growth in both retail and online channels. Notably, retail stores delivered a robust 7% comparable sales growth, while e-commerce grew by 1.3%.

The company’s gross margin reached 47.3%, up 130 basis points year-over-year, primarily benefiting from supply chain efficiencies, higher merchandise margins, and occupancy leverage. Operating income for the quarter was $530 million, resulting in a record operating margin of 21.5%, an increase of 140 basis points compared to the previous year. Diluted earnings per share (EPS) stood at $3.28, reflecting a 20.6% increase from the year prior.

For the fiscal year 2024, Williams-Sonoma reported net revenues of $7.7 billion, although this represented a decline of 1.6% in comparable brand revenue. Full-year gross margin ended at 46.5%, with a notable increase of 380 basis points year-over-year, excluding a prior year freight adjustment. The operating margin for fiscal 2024 finished at 18.6%, including an adjustment from the previous year; it was 17.9% without this adjustment, marking a year-over-year increase of 150 basis points. Annual diluted EPS was reported at $8.79, which includes a benefit of $0.29 per share from the earlier mentioned freight adjustment.

The company also exhibits strong financial health with a balance sheet showing $1.2 billion in cash and no outstanding debt. Merchandise inventory rose by 6.9% year-over-year to $1.3 billion. Williams-Sonoma continued to prioritize capital returns, generating $1.1 billion in free cash flow and returning the same amount through share buybacks and dividend distributions.

Looking ahead to fiscal year 2025, Williams-Sonoma provided guidance for net revenue which suggests a range of decline between 1.5% to a modest increase of 1.5%, while comparable sales are expected to remain flat to a maximum growth of 3%. Operating margins are projected to be within the range of 17.4% to 17.8%, inclusive of planned tariff impacts. Furthermore, the company announced a 16% increase in its quarterly dividend to $0.66 per share, underlining its commitment to returning capital to shareholders.