In a third quarter when e-commerce sales gave the company a boost, Williams Sonoma delivered solid results with an increase in net earnings and revenues.
Williams-Sonoma posted net earnings of $81.5 million, or $1 per diluted share, versus $71.3 million, or 84 cents per diluted share, in the year-earlier quarter. Adjusted earnings were $77.8 million, or 95 cents per diluted share in the quarter. Adjusted earnings per share topped a MarketBeat analyst consensus estimate by a penny.
Overall, comparable brand revenue growth advanced 3.1% in the quarter year over year. West Elm led Williams-Sonoma comp growth among the individual retail brands, up 8.3%, followed by the namesake banner, up 2.1%, and Pottery Barn, up 1.4%, versus the year-before period. Pottery Barn Kids and Teen comps came in flat year over year.
Net revenues were $1.36 billion, up from $1.3 billion, in the year-previous quarter, with e-commerce representing 55% of sales as compared to 53.1% in the period a year earlier. Operating income was $94.4 million versus $110.8 million, in the period a year prior, with increased SG&A expenses, including higher labor and associated costs impacting the metric in the latest completed quarter.
Laura Alber, Williams-Sonoma president and CEO, said, “We delivered third quarter with EPS at the high end of guidance and continued strength in demand and customer growth. This performance demonstrates our team’s strong execution, the ongoing benefits of our strategic initiatives and the power of our multi-channel, multi-brand model. Given the substantial progress we’ve made in our business this year and our compelling pipeline of innovative product and inspiring content, we believe we are well-prepared to deliver this holiday season and remain on track to meet our full year guidance.”