Williams-Sonoma, Inc ( WSM ) shares are shooting higher after the company reported a fourth-quarter FY23 sales decline of 7.1% year-on-year to $2.28 billion, beating the analyst consensus estimate of $2.23 billion.

Comparable brand revenue for the quarter declined 6.8%. Adjusted EPS of $5.44 beat the analyst consensus estimate of $5.12.

Gross margin expanded 480 basis points to 46%, and the gross profit rose 3.8% to $1.04 billion. 

Operating income declined 2.5% to $458.1 million, with an operating margin of 20.1%.

The company held $1.26 billion in cash and equivalents as of January 28, 2024.

William-Sonoma’s Board of Directors has authorized a 26% increase in the company’s quarterly cash dividend to $1.13 per common share. 

The quarterly dividend is payable on May 24, 2024, to stockholders of record as of the close of business on April 19, 2024. 

The Board has also approved a new $1 billion stock repurchase authorization, which supersedes the company’s current stock repurchase authorization.

“We outperformed in 2023 despite the slowest housing market in several decades and geopolitical unrest,” said Laura Alber, President and Chief Executive Officer.

Outlook: Williams-Sonoma ( WSM ) sees FY24 net revenue growth in the range of -3% to +3%, with comps in the range of -4.5% to +1.5% and an operating margin between 16.5% to 16.8%.

Over the long term, the company continues to expect mid-to-high single-digit annual net revenue growth with an operating margin in the mid-to-high teens.

Price Action: WSM shares are trading higher by 17.9% at $284.26 on the last check Wednesday.