.August 22, 2024 11:50:00 AM

Williams-Sonoma, Inc. (NYSE:WSM) exceeded second-quarter earnings expectations but missed revenue targets, leading to an 8% drop in shares. Earnings per share were $1.74, surpassing analyst estimates of $1.61. However, revenue of $1.79 billion fell short of the expected $1.81 billion, showing a 3.3% decline year-over-year on a comparable brand basis. Despite the revenue miss, the company improved profitability with an operating margin of 16.2%, up 160 basis points from last year, driven by higher merchandise margins and improved supply chain efficiencies. Williams-Sonoma revised its fiscal 2024 guidance, now expecting annual net revenue growth between -4.0% and -1.5%, down from the previous range of -3% to +3%, but raised its operating margin outlook to 17.4%-17.8%.