Williams-Sonoma (WSM 49.48, +1.36) has climbed 2.8% in reaction to mixed results and guidance. In addition, the company's Board of Directors increased the company's quarterly dividend 5.0% to $0.39 per share.
The retailer reported above-consensus fourth quarter earnings of $1.55 per share on a 0.3% year-over-year downtick in revenue to $1.58 billion, which was a bit shy of expectations. Comparable brand revenue declined 0.9%.
Gross margin rose to 39.3% from 38.3% one year ago while operating margin ticked down to 13.6% from 14.0% one year ago.
Taking a look at the comparable brand revenue breakdown, comparable brand sales at Williams Sonoma (+1.4%) and West Elm (+6.5%) registered growth while comparable brand sales at Pottery Barn (-4.1%), Pottery Barn Kids (-4.9%), and PBteen (-8.1%) declined.
E-commerce net revenue grew 2.2% year-over-year to $809 million. This accounted for 51.1% of total net revenue, up from 49.9% of total net revenue in the fourth quarter of 2015.
Williams-Sonoma ended 2016 with 629 concept stores. The company plans to open 21 new concept stores and expects to close 16, which will increase the store count to 634 by the end of 2017.
Looking ahead, the company expects some softness in the first quarter, but hopes for a strong finish to the year. First quarter earnings are expected between $0.45 and $0.50 per share, which is shy of market expectations. First quarter revenue is expected to be $1.12 billion, which is what the market expects. For the full year, earnings are expected between $3.45 and $3.65 per share, which is well ahead of expectations. Similarly, the company's guidance for revenue between $5.17 billion and $5.27 billion is ahead of market estimates.