Williams-Sonoma Reports First Quarter 2024 Results

Williams-Sonoma, Inc. released its first quarter fiscal 2024 results for the period ended April 28, 2024. The company reported a 4.9% decrease in comparable brand revenue compared to the prior year. However, gross margin saw a significant improvement, reaching 48.3% including an out-of-period adjustment. Excluding this adjustment, the gross margin was 45.4%, driven by higher merchandise margins and supply chain efficiencies.

Selling, general, and administrative (SG&A) expenses were 28.8% of net revenue. This increase from the prior year was attributed to higher advertising spending and incentive compensation. Operating income for the quarter was $324 million, with an operating margin of 19.5% (including the adjustment). Excluding the adjustment, the operating margin was 16.6%.

Diluted earnings per share (EPS) were $4.07, which included a $0.59 benefit from an out-of-period adjustment related to freight expenses. Merchandise inventories decreased by 13.1% year-over-year, totaling $1.2 billion. The company maintained a strong liquidity position with $1.3 billion in cash and generated $227 million in operating cash flow.

For the full fiscal year 2024, Williams-Sonoma reiterated its guidance for net revenue growth between -3% and +3%. The company raised its operating margin guidance to a range of 17.6% to 18.0%, which includes the impact of the prior adjustment. Williams-Sonoma returned $107 million to stockholders through dividends and stock repurchases during the quarter.