Williams-Sonoma stock rocketed to a record high early Wednesday after the high-end home furnishing goods retailer cleared Q3 views and lifted its guidance.
Williams-Sonoma (WSM) reported a 7.1% increase in earnings to $1.96 per share, beating FactSet estimates for $1.77 per share. Revenue slid to $1.8 billion from $1.85 billion, but still topped estimates for $1.77 billion.
Comparable brand sales fell 2.9% for the quarter, but managed to beat views for a 3.7% decline. Merchandise inventories rose 3.8% to $1.45 billion.
The company's board of directors also, in September, authorized a new $1 billion stock repurchase program.
CEO Laura Alber said in the earnings release that Williams-Sonoma continued to see improving sales trends, market share gains and "strong profit," despite operating in a "difficult environment" during the quarter.
"Our strategy of focusing on returning to growth, enhancing our world-class customer service, and driving margins is working," Alber said in the release. "As we head into the last quarter of the year, we are optimistic and confident about our business The fourth quarter is the time of year where we shine. And, therefore, we are raising our full-year guidance."
Williams-Sonoma now expects 2024 net revenue to decline 1.5% to 3%, narrowed from prior expectations of a 1.5% to 4% drop. The company also expects comparable sales to range from a 3% to 4.5% decline, improving slightly from its previous guidance for a 3% to 5.5% decline.
WSM stock rallied more than 25% Wednesday, to a record high of 175.80 in early trade.
Shares have rebounded about 36% from their early November low. Williams-Sonoma has soared nearly 68% so far this year.
Elsewhere, Target (TGT) tumbled more than 20% Wednesday after posting a huge earnings miss.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
YOU MAY ALSO LIKE:
Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists
Looking For The Next Big Stock Market Winners? Start With These 3 Steps
Join IBD Live And Learn Top Chart Reading And Trading Techniques From Pros