US kitchenware and home furnishings retailer Williams-Sonoma demonstrated financial resilience with gross profits climbing to $3.58bn in the fiscal year 2024 (FY24) – an 8.4% increase from the previous year’s $3.3bn.
The company’s gross margin for the fiscal year reached 46.5%, bolstered by a 70 basis point gain attributed to an adjustment for freight costs in the first quarter.
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Despite a marginal dip in net revenue to $7.71bn in FY24 from $7.75bn the previous year, Williams-Sonoma’s operating income rose to $1.43bn from $1.24bn, resulting in an operating margin of 18.6%.
Net earnings for the retailer also saw a significant uptick, rising to $1.12bn from $949.76m in the preceding year. This growth translated into a substantial increase in diluted earnings per share (EPS), which went up from $7.28 to $8.79.
Williams-Sonoma president and CEO Laura Alber stated: “We are proud of our strong finish to 2024. This success was fuelled by the strength of our operating model, our standout seasonal offerings, our impactful collaborations and a strong improvement in both retail and online furniture sales.
In the fourth quarter of the fiscal, year, Williams-Sonoma experienced an 8% jump in net revenue to $2.46bn and a 3.1% rise in comparable brand revenue.
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By GlobalDataThe quarter’s net earnings reached $410.71m, increasing from $354.43m in the same quarter of the previous year.
The retailer’s operating income hit $530.14m in Q4 FY24, achieving a record operating margin of 21.5%. Diluted EPS for the quarter also increased to $3.28 per share.
Looking ahead to fiscal 2025, Williams-Sonoma anticipates annual net revenues to fluctuate between a decrease of 1.5% and an increase of 1.5%, factoring in the impact of an additional week in the fiscal 2024 calendar year.
The company projects its operating margin between 17.4% and 17.8%, including a 20 basis point impact from the extra week.
“Looking to 2025, we are confident in our strategies and competitive positioning. Despite an uncertain backdrop, we have been, and will continue to be, focused on returning to growth, enhancing our world-class customer service, and driving earnings. We are innovators and operators and are well set up for a great 2025,” Alber concluded.
