Upcoming AWS Coverage on Bed Bath & Beyond

LONDON, UK / ACCESSWIRE / March 28, 2017 / Active Wall St. announces its post-earnings coverage on Williams-Sonoma, Inc. (NYSE: WSM). The Company posted its fourth quarter and fiscal 2016 financial results on March 15, 2017. The cookware and home furnishings seller surpassed earnings expectations. Register with us now for your free membership at:

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One of Williams-Sonoma's competitors within the Home Furnishing Stores space, Bed Bath & Beyond Inc. (NASDAQ: BBBY), is expected to report its fiscal Quarter ending February 2017 earnings results on April 05, 2017 after market close. AWS will be initiating a research report on Bed Bath & Beyond following the release of its nest earnings results.

Today, AWS is promoting its earnings coverage on WSM; touching on BBBY. Get our free coverage by signing up to

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Earnings Reviewed

For the fourth fiscal quarter ended January 29, 2017, Williams-Sonoma's net revenues fell slightly by 0.3% to $1.58 billion versus $1.59 billion in Q4 FY15. The Company's revenue numbers came in below analysts' consensus of $1.61 billion. For FY16, net revenues grew 2.2% to $5.08 billion versus $4.98 billion in FY15 with comparable brand revenue growth of 0.7%.

For Q4 FY16, Williams-Sonoma operating margin was 13.6% versus 14.0% in Q4 FY15. The Company gross margin was 39.3% in the reported quarter versus 38.3% in the prior year's same quarter. Selling, general, and administrative ("SG&A") expenses were $406 million, or 25.7% of net revenues, in Q4 FY16 versus $385 million, or 24.3% of net revenues, in Q4 FY15.

For FY16, Williams-Sonoma's operating margin was 9.3% versus 9.8% in FY15. Excluding severance-related reorganization charges, non-GAAP operating margin was 9.6% in FY16.

Williams-Sonoma reported Q4 FY16 diluted earnings per share (EPS) of $1.63 compared to EPS of $1.55 in Q4 FY15. Excluding the net benefit of approximately $0.08 per diluted share from a one-time favorable tax adjustment, non-GAAP EPS was $1.55 in Q4 FY16. The Company's earnings numbers surpassed market expectations of $1.51 per share.

FY16 diluted EPS was $3.41 versus $3.37 in FY15. Excluding severance-related reorganization charges of approximately $0.10 per diluted share and the net benefit of approximately $0.08 per diluted share from a one-time favorable tax adjustment, non-GAAP EPS was $3.43 in FY16.

Laura Alber, President and Chief Executive Officer, commented:

"In 2016, we delivered revenues of over $5 billion, which included another year of double-digit growth across West Elm, our newer businesses Rejuvenation and Mark and Graham, and our company-owned global operations. Additionally, from an operational perspective, we executed one of our best holiday seasons and delivered an improved customer experience which is at the center of everything we do."

Segment Details

Williams-Sonoma's comparable brand revenue in Q4 FY16 decreased 0.9% compared to 0.8% growth in Q4 FY15. Ecommerce's net revenues in Q4 FY16 increased 2.2% to $809 million from $792 million in Q4 FY15. Ecommerce net revenues generated 51.1% of total Company net revenues in Q4 FY16 and 49.9% of total Company net revenues in Q4 FY15. Retail net revenues in Q4 FY16 decreased 2.7% to $773 million from $794 million in Q4 FY15.

Williams-Sonoma's ecommerce's net revenues in FY16 increased 4.4% to $2.63 billion from $2.52 billion in FY15. Retail net revenues in FY16 decreased 0.1% to $2.450 billion from $2.454 billion in FY15.

Balance Sheet

Cash returned to stockholders totaled $69 million, comprising $36 million in stock repurchases and $33 million in dividends. Cash returned to stockholders totaled $285 million, comprising $151 million in stock repurchases and $134 million in dividends.

Merchandise inventories at the end of FY16 were $978 million, down 0.1% compared to FY15.

Stock Repurchase Program and Dividend Increase

During FY16, Williams-Sonoma repurchased 2.9 million shares of common stock at an average cost of $52.68 per share and a total cost of approximately $151 million. As of January 29, 2017, there were approximately $411 million remaining under the Company's current stock repurchase program.

In a separate press release on the same day, Williams-Sonoma announced that its Board of Directors has authorized a 5% increase in the company's quarterly cash dividend. The quarterly cash dividend will be increased from $0.37 to $0.39 per common share and is payable on May 26, 2017, to shareholders of record as of the close of business on April 28, 2017.

Stock Performance

At the closing bell, on Monday, March 27, 2017, Williams-Sonoma's stock climbed 1.38%, ending the trading session at $48.62. A total volume of 1.17 million shares were traded at the end of the day. In the last month, shares of the Company have advanced 0.50%. Moreover, the stock gained 1.25% since the start of the year. The Company's shares are trading at a PE ratio of 14.20 and have a dividend yield of 3.21%.

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SOURCE: Active Wall Street