E-commerce drives Q2 revenue growth at Williams-Sonoma
Williams-Sonoma Inc. reported net revenue growth of 9% in Q2 fiscal 2020, with online sales playing a major role.
The specialty home furnishings retailer saw net revenue rise to $1.49 billion from $1.37 billion the prior-year quarter. Williams-Sonoma credited an approximately 46% increase in e-commerce revenue as a “significant driver” of its overall performance in the quarter.
Net earnings more than doubled to $134.6 million from $62.6 million. Higher year-over-year merchandise margins and occupancy leverage, along with lower occupancy costs, helped boost profits. Same-store sales rose 10.5%, with Williams-Sonoma leading all of the company’s store banners with 29% growth. Same-store sales also grew 8% at Pottery Barn, 7% at West Elm, and 4.8% at Pottery Barn Kids and Teen.
Given the dynamic nature of the COVID-19 crisis and continuing macroeconomic uncertainty, the company is not providing guidance for fiscal year 2020. However, Williams-Sonoma provided long-term guidance of total net revenue growth in the mid-to-high single digits.