Williams-Sonoma advanced in the second quarter, with the majority of its retail banners posting comp gains, highlighted by West Elm’s performance.
For the second quarter ended July 30, Williams-Sonoma posted net earnings of $52.9 million, or 61 cents per diluted share, versus $51.8 million, or 58 cents per diluted share, in the period a year before. Earnings per diluted share beat a Zacks Investment Research analyst average estimate by two cents.
Overall comparable brand revenue increased 2.8% in the period. Banners with comp advances included West Elm, up 10.1%, Williams Sonoma, up 1.9%, Pottery Barn up 1.2% and PBteen, up 0.2%. Pottery Barn Kids comps were down 3.9%.
Net revenues were $1.2 billion versus $1.16 billion in the quarter in the year prior. E-commerce represented 52.5% of sales, a slightly higher proportion than in the year-earlier period. Operating income was $81.6 million versus $83.3 million in the year-previous quarter. Higher SG&A expenses hit operating income but lower income taxes helped Williams-Sonoma to higher net earnings.
Laura Alber, Williams-Sonoma president and CEO, said, “Our second quarter results with accelerated revenue and comp growth of 3.7% and 2.8%, respectively, demonstrate that the investments and actions we have undertaken to deliver value, quality and excellent customer service are driving improved top-line performance. These results reflect the strength of our brands and our competitive advantages, as well as our relentless focus on our initiatives to drive innovation and operational excellence. And, we are aggressively building upon these initiatives to further differentiate ourselves and to drive profitable growth.”