Williams-Sonoma cooks up a profitable quarter

Williams-Sonoma says its customer-focused strategy and brand portfolio led to its earnings spike in the third quarter and will further position the company for growth into the holiday season.



The upscale housewares retailer grew profit, revenue and same store sales in the third quarter ended Nov. 1. Net revenue increased 7.8% to $1.232 billion versus $1.143 billion in the prior year. Same store sale increased 4.5%. The company reported net earnings for the third quarter of $70.5 million, or 77 cents per share. This compared to $64.9 million, or 68 cents per share, in the same period last year.



“We are pleased with our solid third quarter results, which speak to the power of our brands and our ability to execute our customer-focused strategy," said Laura Alber, president and CEO. "We achieved total net revenue growth of 8%, EPS growth of 13%, and we are reiterating our full year guidance. Looking ahead, while the retail landscape and consumer demand has been more volatile, we believe our balanced portfolio of differentiated brands and strong multichannel platform positions us for ongoing market share gains. Our focus remains on executing our strategic initiatives to drive long-term sustainable growth for our shareholders.”



For the fourth quarter the company forecast earnings per share of $1.53 to $1.62 and revenue of $1.58 billion to $1.63 billion, lower than analysts' estimates.



Williams-Sonoma, Inc. is a specialty retailer of 623 stores operating under the banners of Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, PBteen, Williams-Sonoma Home, Rejuvenation, and Mark and Graham.