Williams-Sonoma, Inc (NYSE: WSM) reported first-quarter revenue growth of 8.1% year-over-year to $1.89 billion, beating the consensus of $1.81 billion. Adjusted EPS was $3.50 (+19.55 Y/Y), above the consensus of $2.88.
WSM clocked comparable brand revenue growth of 9.5%, including Pottery Barn at 14.6% and West Elm at 12.8%.
The gross margin was 43.8%, up by 80 bps and driven by higher year-over-year merchandise margins and occupancy leverage of ~20 bps.
The operating margin expanded by 140 bps to 17.1%, and the non-GAAP operating margin expanded by 120bps.
The company has a strong liquidity position of $325 million in cash, and it generated $185 million in operating cash flow, compared to $238.88 million in 1Q21.
WSM repurchased over $500 million in shares and paid over $58 million in dividends in Q1.
“As we look to the balance of the year, we remain confident and committed to our guidance of mid-to-high single-digit comps with operating margins relatively aligned to fiscal 2021. We have a solid line-up of growth initiatives and operational improvements planned for the balance of the year. And, as we look further, we are confident in our path to be a $10 billion company by 2024,” commented Laura Alber, President and Chief Executive Officer.
Price Action: WSM shares are trading higher by 15.80% at $133 during the post-market session on Wednesday.
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