11:05 AM EDT, 05/22/2024 (MT Newswires) -- Williams-Sonoma ( WSM ) posted stronger-than-expected fiscal first-quarter results on Wednesday and affirmed its full-year sales guidance that calls for flat year-over-year revenue at the midpoint.

Revenue fell to $1.66 billion for the three months ended April 28 from $1.76 billion the year earlier but topped the $1.65 billion average analyst estimate on Capital IQ. Earnings per share climbed to $4.07 from $2.35, well above Wall Street's $2.70 view.

Shares of Williams-Sonoma ( WSM ) were little changed in Wednesday trade, reversing gains logged earlier in the day.

"We are pleased to deliver strong results in the first quarter of 2024, driven by an improving top-line trend and continued strength in our profitability," Chief Executive Laura Alber said in a statement.

The home goods retailer's comparable brand revenue declined 4.9%, reflecting declines of nearly 11% and 4.1% at Pottery Barn ( WSM ) and West Elm, respectively. West Elm's performance improved on a sequential basis after plunging more than 15% in the fiscal fourth quarter. Same-store sales in the first quarter rose 0.9% at Williams Sonoma ( WSM ) and 2.8% at Pottery Barn Kids and Teen.

For the full year, the company continues to expect consolidated revenue to be down 3% to up 3%, implying flat year-over-year sales at the midpoint from fiscal 2023's $7.75 billion. The home goods retailer affirmed its view that fiscal 2024 comparable sales will range from being down 4.5% to up 1.5%.

Williams-Sonoma ( WSM ) lifted its operating margin outlook to between 17.6% and 18% from a prior view in the 16.5% to 16.8% range. The new guidance includes an out-of-period adjustment of 60 basis points. Excluding the adjustment, operating margin would be between 17% and 17.4%, it said.

"We remain committed to executing on our three key priorities in 2024 -- returning to growth, elevating our world-class customer service, and driving margin," Alber said.

Price: 323.40, Change: +9.01, Percent Change: +2.87