Williams-Sonoma, Inc. (WSM) has reported a 2.48 percent rise in profit for the quarter ended Jan. 29, 2017. The company has earned $144.63 million, or $1.63 a share in the quarter, compared with $141.13 million, or $1.55 a share for the same period last year. On an adjusted basis, earnings per share were at $1.55 for the quarter.
Revenue during the quarter went down marginally by 0.30 percent to $1,581.58 million from $1,586.30 million in the previous year period. Gross margin for the quarter expanded 103 basis points over the previous year period to 39.33 percent. Total expenses were 86.35 percent of quarterly revenues, up from 85.96 percent for the same period last year. That has resulted in a contraction of 39 basis points in operating margin to 13.65 percent.
Operating income for the quarter was $215.82 million, compared with $222.68 million in the previous year period.
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."
For financial year 2017, Williams-Sonoma, Inc. forecasts revenue to be in the range of $5,165 million to $5,265 million. The company forecasts operating income to grow in the range of 9.40 percent to 9.60 percent. The company expects diluted earnings per share to be in the range of $3.45 to $3.65.
For the first-quarter, Williams-Sonoma, Inc. forecasts revenue to be in the range of $1,085 million to $1,120 million. The company expects diluted earnings per share to be in the range of $0.45 to $0.50.
Operating cash flow falls marginally
Williams-Sonoma, Inc. has generated cash of $524.71 million from operating activities during the year, down 3.55 percent or $19.32 million, when compared with the last year.
The company has spent $196.98 million cash to meet investing activities during the year as against cash outgo of $202.17 million in the last year.
The company has spent $305.81 million cash to carry out financing activities during the year as against cash outgo of $369.38 million in the last year period.
Cash and cash equivalents stood at $213.71 million as on Jan. 29, 2017, up 10.36 percent or $20.07 million from $193.65 million on Jan. 31, 2016.
Working capital increases
Williams-Sonoma, Inc. has recorded an increase in the working capital over the last year. It stood at $405.92 million as at Jan. 29, 2017, up 19.50 percent or $66.25 million from $339.67 million on Jan. 31, 2016. Current ratio was at 1.42 as on Jan. 29, 2017, up from 1.34 on Jan. 31, 2016.
Cash conversion cycle (CCC) was almost stable at 27 days for the quarter, when compared with the last year period. Days sales outstanding were almost stable at 3 days for the quarter, when compared with the last year period.
Days inventory outstanding was almost stable at 46 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 22 days for the quarter, when compared with the previous year period.
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