Williams-Sonoma enjoyed big comparable brand gains in the third quarter, with significant earnings increases, as the retailer continues to position itself to “own the home.”
Net earnings were $201.8 million, or $2.54 per diluted share, versus $74.7 million, or 94 cents per diluted share, in the quarter a year prior. Diluted earnings per share adjusted to exclude one-time charges were $2.56 versus $1.02 in the year-before period.
Williams-Sonoma’s adjusted diluted earnings per share came in well ahead of a MarketBeat-published analyst consensus estimate of $1.52 for the quarter.
Comparable brand revenue increased 24.4% year-over-year with Williams Sonoma up 30.4%, Pottery Barn up 24.1%, Pottery Barn Kids and Teen up 23.8% and West Elm up 21.8%. E-commerce net comparable brand revenue growth was 49.3% versus the year-past quarter with e-commerce penetration holding at almost 70% of total net revenues.
Williams-Sonoma posted net revenue growth of 22.4% to $1.76 billion from the year-earlier period. Operating income was $274.6 million versus $101.9 million in the quarter a year before while adjusted operating income was $276.8 million compared to $109.9 million.
“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. 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 is the retail demand comp at negative 4%. And, we delivered these sales more profitably, with operating margins reaching record levels at 15.7%,” said Laura Alber, Williams-Sonoma president and CEO. “Our vision is to own the home. And, with our distinctive positioning, we will only become more relevant. We have the strategies, the team and the world-class platform to maximize the industry trends that favor our business and successfully execute on our growth opportunities. We are confident that we will continue to drive accelerating sales growth with increasing profitability and evolve into an even more attractive business for our stakeholders during and post pandemic.”