Williams-Sonoma Increases Dividend of 29% and New $225 Million Stock Repurchase Program; Q4 EPS $1.10-1.15 vs $1.15-1.20 Prior

Williams-Sonoma, Inc.

today announced that net revenues for the 8-week holiday period ended December 25, 2011 increased 4.2% to $901 million versus the 8-week holiday period ended December 26, 2010, including a comparable brand revenue increase of 4.9%. The company projects Q4 11 diluted earnings per share to be in the range of $1.10 to $1.15 which is at or marginally below the low end of the previous guidance range of $1.15 to $1.20 due to the promotional environment during the holiday season. On a full-year basis, the company still expects to deliver record pre-tax operating profits and diluted earnings per share. The company also announced that it is increasing its quarterly dividend by 29% to $0.22 per share for shareholders of record on January 27, 2012 and is authorizing a new $225 million stock repurchase program. The company also announced today that its Board of Directors has authorized a $0.05 or 29% increase in the company's quarterly cash dividend. The quarterly cash dividend will be increased from $0.17 to $0.22 per common share and is payable on February 24, 2012 to shareholders of record as of the close of business on January 27, 2012. Additionally, the company announced today that its Board of Directors has authorized a new $225 million stock repurchase program to be completed in fiscal 2012. The company anticipates completing the remaining $5 million of its $125 million fiscal 2011 stock repurchase program by the end of the current fiscal year. Adrian Bellamy, Chairman of the Board of Directors, commented, “These actions reflect the Board's continuing confidence in the cash-generating power of our multi-channel business model, the strength of the company's balance sheet, and its desire to return excess cash to shareholders. We anticipate completing the new stock repurchase program by the end of our next fiscal year in January 2013.”