SAN FRANCISCO - Williams-Sonoma, Inc. (NYSE: NYSE:WSM) has declared a two-for-one stock split in the form of a stock dividend, aiming to make its shares more accessible to a broader base of investors and employees. The company's stockholders as of June 27, 2024, will receive an additional share for each share they own, with the stock dividend payable after the market closes on July 8, 2024.
Trading on a split-adjusted basis is set to begin at the opening of the market on July 9, 2024. This move is not expected to alter the voting or other rights of the company's shareholders.
Williams-Sonoma, recognized as the world's largest digital-first, design-led, and sustainable home retailer, markets a variety of home goods through its family of brands. These include Williams Sonoma, Pottery Barn, and West Elm, among others, which are sold via e-commerce platforms, direct-mail catalogs, and retail stores. The company also has a loyalty and credit card program known as The Key Rewards, which offers exclusive benefits across its brand network.
The retailer operates in several international markets including the U.S., Canada, Australia, and the United Kingdom, and offers international shipping to customers globally. Additionally, Williams-Sonoma has franchisees in the Middle East, Mexico, South Korea, and other regions that operate stores and e-commerce websites.
Williams-Sonoma prides itself on a values-based culture and its commitment to sustainability, which is integrated into all aspects of its business operations. The company has been proactive in implementing sustainable practices across its supply chain and product offerings.
This stock split announcement is based on a press release statement from Williams-Sonoma, Inc. The company's shares are traded on the New York Stock Exchange under the ticker symbol WSM.
In other recent news, Williams-Sonoma, Inc. has declared a quarterly cash dividend of $1.14 per share, which will adjust to $0.57 per share post-stock split. The company has also welcomed Andrew Campion, former Nike Inc (NYSE:NKE). executive, to its Board of Directors. On the analyst front, RBC Capital has maintained its 'Outperform' rating on Williams-Sonoma, with TD Cowen echoing a positive outlook by reiterating a 'Buy' rating and a price target of $340.00.
The company's first quarter of Fiscal Year 2024 performance showed an operating margin of 19.5% and earnings per share of $4.07, leading to an upward revision of its operating margin forecast for the year. These are among the recent developments for the company. Barclays, however, maintains an 'Underweight' rating with a steady price target of $232.00.
InvestingPro Insights
In the wake of Williams-Sonoma's recent announcement of a two-for-one stock split, it's worth noting that the company has a robust track record of rewarding shareholders. According to InvestingPro Tips, Williams-Sonoma has not only maintained but also increased its dividend payments for 19 consecutive years, showcasing a commitment to providing consistent shareholder value. Moreover, the company has demonstrated a high return over the last year, with a price total return of 145.33% as of the previous year.
From a financial standpoint, Williams-Sonoma's current market capitalization stands at 20.0 billion USD, reflecting its substantial presence in the retail market. The company's P/E ratio, a measure of its current share price relative to its per-share earnings, is 19.36, which is slightly high when considering near-term earnings growth. Additionally, Williams-Sonoma's Price / Book ratio for the last twelve months as of Q1 2025 is at 9.05, indicating that the stock is trading at a premium compared to the company's book value.
For those investors and analysts looking to delve deeper into Williams-Sonoma's financial health and stock performance, there are additional InvestingPro Tips available, including insights on earnings revisions, stock price volatility, and debt levels. To gain access to these valuable insights, consider using the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, which includes a comprehensive list of 14 additional InvestingPro Tips for Williams-Sonoma.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.