Williams-Sonoma Advances In Q1

Williams-Sonoma advanced in-store and online sales in its first quarter, with comp growth across its retail brand portfolio.

Net revenues increased 8.2% to $1.203 billion in the first quarter ended April 29 from $1.112 billion in the first quarter of 2017. E-commerce net revenues in the first quarter increased 11.3% to $646 million from $581 million in the first quarter of 2017. E-commerce net revenue growth accelerated double-digits, to 53.7% of total company net revenues. Retail net revenues in the first quarter increased 4.9% to $557 million from $531 million in the previous first quarter.

Comparable brand revenue in the first quarter increased 5.5% compared to an increase of 0.1% in the previous first quarter. By the company’s retail brands, West Elm posted a 9% comparable brand revenue growth in the first quarter; Williams Sonoma increased to 5.6%; Pottery Barn Kids and Teen rose to 5.3%; and Pottery Barn posted 2.7% comp sales growth. The company noted that starting this quarter, Pottery Barn Kids and PBteen are being reported on a combined basis.

Net earnings rose 3.8% to $45.2 million from $39.5 million in the previous first quarter. Earnings per share in the first quarter was $0.54 versus $0.45 the 2017 first quarter.

Laura Alber, president and CEO, Williams Sonoma, said, “Following a robust fourth quarter, we saw continued strength in the first quarter. We achieved strong results against our guidance range across all metrics, with our e-commerce revenues outpacing to almost 54% of our total revenues. Our customer growth continued to trend positively for both new and existing customers, demonstrating the success of our balanced customer acquisition strategy.”

Alber added, “These results speak to the power of our established multi-channel model, distinctive brand portfolio and world-class customer service heritage— all of which are our company’s competitive strengths. Based on this strong start to the year, we are raising our full year guidance for net revenues by $20 million and for EPS by $0.03.”