WSM Up 6%: Hikes Dividend 41%, Brand Chief Harvey Steps Down

Shares of Williams-Sonoma (WSM) are up $2.29, or 5.5%, at $47.50, after the home furnishings chain this afternoon reported fiscal Q4 expectations that beat analysts’ estimates, forecast this quarter’s results a tad light, and projected full-year revenue above expectations, and said it would hike its quarterly dividend payout by 41%.

Revenue in the three months ended February 3rd rose to $1.41 billion, yielding EPS of $1.34.

Analysts had been modeling $1.4 billion and $1.29.

For the current quarter, the company sees revenue in a range of $850 million to $870 million, and EPS of 33 cents to 36 cents. That is slightly below the average estimate of $867 million and 39 cents.

For the full year, the company sees revenue in a range of $4.2 billion to $4.28 billion, and EPS of $2.65 to $2.75. That is above the average revenue estimate for $4.23 billion but below the consensus for $2.82 per share.

In a separate release, the company said it would raise its quarterly dividend to 31 cents per share per quarter, starting with the dividend payable May 24th to shareholders of record as of April 26th. Williams Sonoma’s board of directors also approved a $750 million repurchase authorization, to be conducted on the open market from time to time, with no expiration date.

In yet another release, the company said Richard Harvey, president of the Williams-Sonoma brand, and a 30-year veteran, will leave on May 3rd. The company said�Janet Hayes, head of�Pottery Barn Kids, will replace him.

CEO Laura Alber�thanked Harvey for having “provided vision for the Williams-Sonoma brand over the past three decades as it grew from a few California stores to the iconic, multi-channel business that it is today.”

Regarding this evening’s earnings results, Alber remarked,

Today’s announcements reflect the power of our multi-channel, multi-brand operating model and confirm our confidence in the growth potential and cash-generating ability of our brands as we look forward to 2013 and beyond. We finished 2012 above our expectations, and our strategies for 2013 are strong. We are pleased that we are able to significantly escalate our commitment to return excess cash to stockholders through a balanced program of share repurchases and dividend increases.