After Wednesday’s closing bell, Williams-Sonoma (WSM) released its fourth quarter financial results. Here’s what the results mean for mutual fund investors.
Inside WSM's Results
The retailer posted net income of $147 million, or $1.57 per share, up from $133.8 million, or $1.38 per share, last year. Adjusted earnings were $1.52 per share, which matched analysts’ view.
Sales increased 5.2% to $1.54 billion from $1.47 billion. Analysts expected to see revenue of $1.57 billion.
Looking ahead, the company expects to see Q1 EPS between 40 cents and 45 cents. Analysts expect to see EPS of 54 cents.
For FY2015, WSM expects to see EPS between $3.35 and $3.45. Analysts expect to see EPS of $3.63.
Strong West Elm Comps
The retailer’s earnings and sales showed strength in the most recent quarter, but failed to meet analysts’ estimates. Comparable sales grew 5.1%, compared to a 8.7% increase, last year.
On a segment basis, West Elm comps surged 19.6% (compared to 18.3% in the same quarter last year). Pottery Barn was the company’s weak segment, as comps rose just 2.9% (compared to a 7% increase last year).
The stock has outperformed both the S&P 500 and the retail industry over the last year. The company also boosted its dividend by 6%, and now offers a dividend yield of approximately 1.8%.
Mutual Funds to Watch
Investors interested in WSM may be interested in the funds listed below. These funds currently have the largest stakes in the company.
|VMCIX||Vanguard Mid Cap||1.66%|
|VTSMX||Vanguard Total Stock Market Index||1.57%|
|ACRNX||Columbia Acorn Z||0.95%|
The Bottom Line
The funds listed above allow investors to gain exposure to WSM while remaining diversified. Investors interested in WSM may also be interested in Bed Bath & Beyond (BBBY) or Pier 1 (PIR).
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