Williams-Sonoma Generates Q4 Sales Growth

Williams-Sonoma generated strong fourth quarter sales, with comps rising across its retail brands, highlighted by West Elm’s performance.

For the fourth quarter ended January 28, Williams-Sonoma posted net earnings of $95.8 million, or $1.13 per diluted share, versus $144.6 million, or $1.63 per diluted share, in the year-previous period.

With one-time items excluded, adjusted earnings in the quarter were $142 million, or $1.68 per diluted share, versus $136.9 million, or $1.55 per diluted share, in the year-before quarter. Adjusted earnings per diluted share topped a MarketBeat-published analyst average estimate of $1.61.

Comparable brand revenue gained 5.4% in the quarter year over year, with Pottery Barn up 4.1%, West Elm up 12.3%, namesake stores up 4.3%, Pottery Barn Kids up 0.9% and PBteen up 2.6%.

Net revenue grew 6.2% to $1.68 billion from the year-prior quarter, with e-commerce delivering 52.2% of the total. E-commerce revenue growth was 8.4% from the year-earlier quarter.

For the full fiscal year, Williams-Sonoma posted net earnings of $259.5 million or $3.02 per diluted share, versus $305.4 million, or $3.41 per diluted share, in the year previous. Adjusted earnings were $311 million, or $3.61 per diluted share, versus $306.8 million, or $3.43 per diluted share, in the year before.

Comparable brand revenue advanced 3.2% year over year, with Pottery Barn up 1%, West Elm up 10.2%, namesake stores up 3.2%, Pottery Barn Kids down 1.8% and PBteen down 1.4%.

In the fiscal year, net revenue grew 4.1% to $5.29 billion, with e-commerce delivering 52.5% of the total. E-commerce net revenues increased 5.5% from the year earlier.

Laura Alber, Williams-Sonoma president and CEO, said, “We ended the year with a strong fourth quarter. Our product and operational initiatives drove broad-based comp growth in all our brands and a substantial acceleration in e-commerce and retail revenue growth from last year. For the full year, we made significant progress against our strategic priorities to strengthen our competitive advantages and drive accelerated growth. With revenue and EPS growth of 4.1% and 5.2%, respectively, we ended the year again demonstrating our ability to consistently deliver top-line and bottom-line growth with robust cash flow generation.”

In the current fiscal year, she added, “We will continue to strategically invest in digital advertising, technology and our customer experience, while driving efficiencies and cost savings. Looking ahead, we are confident in our strategies and proven track record to further extend our leadership in the home furnishings and housewares industry.”