Williams-Sonoma reports 5.8% jump in first-quarter revenues
Powered by its West Elm brand, retailer Williams-Sonoma said revenues rose 5.8% to $1.03 billion in the quarter ended May 3.
The company said all of its major brands – Pottery Barn, Williams-Sonoma, West Elm, Pottery Barn Kids and PBTeen – recorded positive comparable-brand revenue growth, but West Elm was the only one in double digits at 15.3%.
E-commerce revenues rose 8.4% to $533 million, or about 52% of total revenues, while revenues from retail stores rose 3.1% to $498 million.
Net income totaled $44.8 million, down slightly from $46.2 million last year’s first quarter. Because the number of outstanding shares dipped in the most recent quarter as part of a stock buyback program, earnings per share totaled 48 cents in both periods.
“Our first quarter results were better than we expected, driven by West Elm and our new businesses, as well as strong operational and financial execution across all of our brands,” said Laura Alber, president and CEO. “Based on the results we see across our portfolio, we are confident in the fundamentals of our business and the year ahead.”
The company reaffirmed the financial guidance that was issued in March, which projected revenues of $4.95 billion to $5.02 billion for the fiscal year. Earnings per share are projected at $3.35 to $3.45.
The guidance includes the impact of the West Coast port slowdown, which the company estimates will reduce revenues by $30 million to $40 million and trim earnings per share by 10 cents to 12 cents.
“We believe our strong brands and profitable multi-channel strategy create a sustainable competitive advantage,” said Alber. “We are focused on executing our long-term growth initiatives and we believe we are well-positioned for consistent market share gains.”
As of May 3, the company had 603 retail stores, including 241 Williams-Sonoma, 198 Pottery Barn, 87 Pottery Barn Kids, 72 West Elm and five Rejuvenation locations.
The company said it expects to have 616 retail locations by the end of the fiscal year, with the majority of the new locations being the West Elm format.
Source: Furniture Today