SAN FRANCISCO – (BUSINESS WIRE) – Williams-Sonoma, Inc. (NYSE: WSM) today announced that its board of directors has authorized an increase of $ 0.06, an 11.3% increase in the company’s quarterly cash dividend at $ 0.59 per share, payable May 28, 2021 to shareholders of record at the close of business on April 23, 2021. The board of directors also approved a new share repurchase authorization of $ 1 billion, which replaces the outstanding balance under the company’s current share buyback authorization. In addition, given the strength of the company’s liquidity position with more than $ 1.2 billion in cash at the end of fiscal 2020, the company prepaid all of its term loan of $ 300 million, eliminating any debt funded as of February 26, 2021.
“Our decisions to increase our quarterly dividend, approve a new $ 1 billion share repurchase authorization and eliminate any outstanding funded debt reflect our confidence in our company’s long-term prospects and our commitment to maximizing returns for our shareholders, ”said Laura Alber, President and CEO.
This new share buyback authorization takes effect on March 17, 2021 and results in $ 1 billion available for future buybacks as part of the company’s share buyback authorization. The company’s share repurchase program allows the purchase of ordinary shares of the company through open market and privately traded transactions, including through rule 10b5-1 plans, at times and amounts that management deems appropriate. The timing and actual number of Shares repurchased will depend on a variety of factors, including price, corporate and regulatory requirements, availability of capital and other market conditions. The share buyback program has no expiration date and may be limited or terminated at any time without notice.
This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions which, if they do not fully materialize or are proven incorrect, could cause our results to differ materially from those expressed or implied. by these forward-looking statements. These forward-looking statements include statements relating to: our quarterly cash dividend; our share buyback program; our commitment to return capital to shareholders and maximize returns for shareholders; and our long-term outlook.
Risks and uncertainties that could cause our results to differ materially from those expressed or implied by these forward-looking statements include: continued changes in general economic conditions and the impact on consumer confidence and consumer spending; new interpretations or changes to current accounting rules; our ability to anticipate consumer preferences and purchasing trends; dependence on the timely introduction and customer acceptance of our merchandise; changes in consumer spending based on weather, political, competitive and other conditions beyond our control; delays in store openings; competition from companies with concepts or products similar to ours; the rapid and efficient sourcing of goods from our foreign and domestic suppliers and the delivery of goods through our supply chain to our stores and customers; effective inventory management; our ability to manage customer returns; successful catalog management including scheduling, sizing and merchandising; uncertainties in electronic marketing, infrastructure and regulation; multi-channel and multi-brand complexities; our ability to introduce new brands and brand extensions; the challenges associated with our growing global presence; dependence on external funding sources for working capital; disruptions in financial markets; our ability to control employment, occupancy and other operating costs; our ability to improve our systems and processes; changes to our information technology infrastructure; general political, economic and commercial conditions and events, including wars, conflicts or acts of terrorism; the impact of recently adopted and potential future tariffs; the continued impact of the COVID-19 pandemic on our business, supply chain and consumer demand, and our ability to mitigate the impacts and other risks and uncertainties described in more detail in our public announcements, reports to shareholders and other documents filed or provided to the Securities and Exchange Commission, including our annual report on Form 10-K, our quarterly reports on Form 10-Q and our current reports on Form 8-K. All forward-looking statements contained in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.
ABOUT WILLIAMS-SONOMA, INC.
Williams-Sonoma, Inc. is the world’s largest home retailer focused on design and sustainability. The company’s products, representing distinct commodity strategies – Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, and Mark and Graham – are marketed through e-commerce websites, direct mail catalogs and retail stores. These brands are also part of The Key Rewards, our free loyalty program that offers members exclusive benefits through the Williams-Sonoma family of brands. We operate in the United States, Puerto Rico, Canada, Australia, and the United Kingdom, offer international shipping to customers around the world, and have unaffiliated franchisees who operate stores in the Middle East, Philippines, in Mexico, South Korea and India, as well as e-commerce websites in some locations. We are also proud to lead the industry with our environmental, social and governance (“ESG”) efforts. Our company is Good By Design – we have sustainability deeply embedded in our business. From our factories to your home, we are united in a common goal of caring for our people and our planet.
For more information on our ESG efforts, please visit: https://sustainability.williams-sonomainc.com/