West Elm, Pottery Barn Boost Williams-Sonoma Q2 Results

Williams-Sonoma made strides in the second quarter with comparable sales at West Elm and Pottery Barn identified as particular drivers.

Net earnings were $62.6 million, or 79 cents per diluted share, the company reported, compared with $51.7 million, or 62 cents per diluted share, in the quarter a year earlier. Diluted earnings per share adjusted for one-time charges were 87 cents versus 77 cents in the year-prior quarter.

Williams-Sonoma topped a MarketBeat-published analyst consensus diluted earnings per share estimate of 83 cents.

Comparable sales advanced 6.5% overall in the quarter year over year, with Williams-Sonoma stores down 1.1%, Pottery Barn up 4.2%, Pottery Barn Kids and Teens up 3.7% and West Elm up 17.5%.

The company posted net revenues of $1.37 billion versus $1.28 billion in the year-before quarter. Operating income was $86.2 million versus $74.2 million in the period a year earlier.

Laura Alber, Williams-Sonoma president and CEO, said, “We continue to deliver very strong results. In the second quarter, comp revenue growth accelerated to 6.5%, while operating margin expanded and EPS grew double digits. The growth strategy that we outlined at the beginning of the year is driving results and giving us the competitive advantage to continue to outperform. West Elm, our biggest growth opportunity, continues to accelerate, the Pottery Barn brands have returned to strength, and our cross-brand initiatives such as the Key and Business-to-Business are becoming more impactful levers of growth. We are also improving the customer experience through innovation and experimentation, and we are seeing the results of this work fuel brand level performance across our portfolio. In addition, our data-driven performance marketing is producing outsized returns on our digital media investments.”