Williams-Sonoma crushes estimates as sales soar 22.4%
Williams-Sonoma is heading into the holidays on the heels of a strong third quarter, fueled by record sales at its namesake brand and as consumers continue to spend on all things related to the home.
The home goods and furnishings company reported net income of $201.8 million, or $2.54 a share, for the quarter ended Nov.1, compared with net income of $74.7 million, or $0.94 a share, in the year-ago quarter. Analysts had expected earnings of $1.56.
Net revenue surged 22.4 % to $1.77 billion, topping estimates of $1.59 billion. Net comparable brand growth rose 24.4%. The retailer reported year-over-year acceleration across all brands, including Williams-Sonoma at a record 30.4%, Pottery Barn at 24.1%, Pottery Barn Kids and Teen at 23.8% and West Elm at 21.8%
E-commerce net comparable brand revenue growth accelerated to 49.3%, with online penetration holding at almost 70% of total net revenues
“In the third quarter, sales again outperformed expectations with demand comp up nearly 31% compared to a net comp of 24%, driven by strength across all brands,” said Laura Alber, president and CEO. “E-commerce accelerated sequentially to a record net comp of over 49% and we were pleased to see our store performance improve throughout the quarter to a net comp of negative 11%.”
“Even more encouraging,” Alber continued, “is the retail demand comp at negative 4%. And, we delivered these sales more profitably, with operating margins reaching record levels at 15.7%.”