Williams Sonoma, the homeware retailer, flew to all-time highs after it lifted 19% higher on Wednesday after its fourth-quarter update comfortably beat Wall Street consensus.
Earnings per share during the period came in at US$5.44, lifting ahead of both market consensus and Goldman Sachs estimates of US$4.93 and US$5.12 respectively.
Sales during the period lifted to US$2.27 billion, ahead of consensus of US$2.23 billion after it experienced a smaller-than-expected 6.8% slide in revenues.
Wall Street had anticipated a 9.3% decline in sales with a gross margin of 44.5%, however, Williams Sonoma was able to lift its margins to 46%.
Looking forward, the retailer said it was expecting revenue growth between -3% and 3%, improving on market expectations of a 1.9% decline.
Despite, the better-than-expected performance Goldman Sachs remains cautious about the stock’s future, maintaining its “sell” rating and US$154 price target.
Shares are trading at around US$285 on Wednesday, representing around a 45% premium to its current market value.