Williams-Sonoma, Inc ( WSM ) shares are trading higher after the company reported first-quarter FY24 earnings above street view.

The company reported a first-quarter FY24 sales decline of 5% year-on-year to $1.66 billion, meeting the analyst consensus estimate.

Comparable brand revenue for the quarter declined 4.9%. Adjusted EPS of $4.07 beat the analyst consensus estimate of $2.70.

Gross margin expanded 980 basis points to 48.3%, and the gross profit rose 18.8% to $802.5 million. 

Operating income jumped 62.3% to $323.8 million, with an operating margin of 19.5%.

The company held $1.25 billion in cash and equivalents as of April 28.

“We remain committed to executing on our three key priorities in 2024 – returning to growth, elevating our world-class customer service, and driving margin,” said Laura Alber, President and Chief Executive Officer.

Outlook: Williams-Sonoma ( WSM ) reiterated its guidance of annual net revenue growth in the range of -3% to +3%, with comps in the range of -4.5% to +1.5% in fiscal 2024.

Over the long-term, Williams-Sonoma ( WSM ) 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 9% at $342.80 at the last check Wednesday.