Williams-Sonoma Buys Back Stock After Posting Results

Williams-Sonoma announced that its board of directors had authorized a $65 million stock buyback program to follow on a recently completed $60 million share repurchase. The company said the buyback was designed to offset dilution from employee stock grants. The buyback program also may help share prices that are off 12-month peaks despite strong results, including a beat on analyst earnings estimates, in the most recently completed quarter. Furniture, decorative accessories and textiles particularly helped drive Williams-Sonoma gains in the second quarter.
Standard & Poor’s currently has a sell rating on Williams-Sonoma shares with analyst Michael Souers citing economic headwinds, a poor housing market and tight credit, as well as the end of easy comparisons with recession-weighted results, for his pessimism on the company.
Wedbush-Morgan analyst Joan Storms has maintained a neutral rating on the Williams-Sonoma stock based on her view that improved business trends have been incorporated into the share price. However, she added, “We remain very favorable on the company’s longer-term prospects.”
Williams-Sonoma shares opened at $29.31 today after closing at $28.89 on Friday, the day the repurchase program was announced.