Williams Sonoma’s retail brands outpaced expectations and powered through a strong fourth quarter and fiscal year.
For the fourth quarter ended February 3, Williams-Sonoma posted net earnings of $155.3 million, or $1.93 per diluted share, versus $95.8 million, or $1.13 per diluted share, in the 13-week period a year before.
Adjusted to exclude one-time charges, net earnings were $169.4 million, or $2.10 per diluted share, versus $142 million, or $1.68 per diluted share, in the year-previous quarter. Adjusted earnings per diluted share topped a MarketBeat-published analyst consensus estimate of $1.97.
Comparable revenue grew 2.4% in the quarter year over year. Comparable brand revenue declined 0.4% at Pottery Barn but gained 11.1% at West Elm, 0.1% at Williams Sonoma and 1.6% at Pottery Barn Kids and Teen from the year-past period.
Net revenues were $1.84 billion versus $1.68 billion in the year-prior quarter. E-commerce revenue increased 14.3% and represented 54.6% of the company total in the fourth quarter.
For the fiscal year, Williams-Sonoma posted net earnings of $333.7 million, or $4.05 per diluted share, versus $259.5 million, or $3.02 per diluted share, in the 52-week year before. Adjusted net earnings were $367.5 million, or $4.46 per diluted share, versus $311 million, or $3.61 per diluted share, in the year previous.
Comps grew 3.7% year over year. Comp brand revenue increased 1.2% at Pottery Barn, 9.5% at West Elm, 1.7% at Williams Sonoma and 2.8% at Pottery Barn Kids and Teen.
Net revenues were $5.67 billion versus $5.29 billion in the year prior. E-commerce revenue increased 10.9% and represented 54.3% of the company total for the year.
Laura Alber, Williams Sonoma president and CEO, said, “2018 was a strong year for our business. We outperformed revenue and EPS expectations while making important investments in our business that set us up for accelerated long-term growth. For 2019 and beyond, our goal is to maximize growth and maintain high profitability, and we have several substantial growth engines that we will be aggressively prioritizing, including West Elm, our newly-launched business to business offering, our emerging brands Williams Sonoma Home, Rejuvenation and Mark and Graham as well as growth in our largest brand Pottery Barn and our namesake brand Williams Sonoma. In addition to our brands, we have a number of cross-brand initiatives, including The Key, which we believe will also be significant drivers of our future growth.”