Williams-Sonoma (WSM) shares plummeted 11.15% in pre-market trading on Wednesday following the release of its fourth-quarter earnings report and disappointing revenue outlook for fiscal year 2025, despite beating estimates for Q4.

The home furnishings retailer reported strong fourth-quarter results, with earnings per share of $3.28 and revenue of $2.46 billion, both surpassing analysts' expectations. Comparable brand revenue growth for Q4 was 3.1%. However, investors seemed more focused on the company's forward-looking statements.

Williams-Sonoma provided a cautious outlook for fiscal year 2025, projecting net revenues in the range of -1.5% to +1.5% compared to the previous year. This conservative guidance appears to have sparked concerns among investors about the company's growth prospects in the near term.

Adding to investor unease, the company disclosed an out-of-period adjustment of $49 million related to over-recognized freight expenses in fiscal years 2021, 2022, and 2023. While this adjustment corrected the cumulative error on the balance sheet, it may have contributed to the negative sentiment surrounding the stock.

Despite these challenges, Williams-Sonoma announced a 16% increase in its quarterly dividend to $0.66 per share, demonstrating confidence in its long-term financial health. The company also reaffirmed its long-term outlook, expecting mid-to-high single-digit annual net revenue growth and operating margins in the mid-to-high teens.

The sharp decline in Williams-Sonoma's stock price highlights investor concerns about the company's near-term growth trajectory, overshadowing its strong Q4 performance and positive long-term outlook.