Williams-Sonoma has double-digit yearly gains
By Furniture Today Staff -- Furniture Today, April 10, 2006
San Francisco — Specialty retailer Williams-Sonoma reported double-digit sales and earnings increases in fiscal 2005, and said same-store sales at its Pottery Barn and Pottery Barn Kids chains rose more than 5%.
The retailer said sales went up 12.8% to $3.5 billion, while net income increased 12.4% to $214.9 million, or $1.81 per share, in the year ended Jan. 29. The 2005 figures include a pretax charge of $13.5 million related to the impending shutdown of its Hold Everything chain.
Sales from stores, which account for about 57% of the total, were up 12.3%. Sales from catalogs and the Internet, which the company calls direct-to-consumer revenues, rose 13.6%.
In the fourth quarter, sales were up 12.1% to $1.2 billion. Net income, including the pretax charge for Hold Everything, was up 6.2% to $120.8 million, or $1.02 per share.
"We believe our 2005 results again highlight what is unique about our company — the strength of our brands, the power of our multi-channel strategy and the competitive advantages we have created with our supply chain network," said Chairman Howard Lester.
The company said same-store sales for the year rose 5.7% at Pottery Barn, 5.2% at Pottery Barn Kids, 2.8% at Williams-Sonoma stores, but declined 10.7% at Hold Everything.
At the end of the fiscal year, the company operated 254 Williams-Sonoma stores, 188 Pottery Barn units, 89 Pottery Barn Kids stores, eight Hold Everything stores, three Williams-Sonoma Home locations, 12 West Elm stores and 16 outlet stores.
| Williams-Sonoma | |||
|---|---|---|---|
| Earnings per share are fully diluted. | |||
| Quarter ended 1/29 | 2006 | 2005 | Change |
| a) Includes an $8.3 million after-tax charge for the restructuring of the Hold Everything brand in both periods. | |||
| Revenues | $1,214,397,000 | $1,083,639,000 | 12.1% |
| Operating income | 192,830,000 | 184,040,000 | 4.8% |
| Net income | (a) 120,783,000 | 113,748,000 | 6.2% |
| Earnings per share | 1.02 | 0.95 | 7.4% |
| Year ended 1/29 | 2006 | 2005 | Change |
| Revenues | $3,538,947,000 | $3,136,931,000 | 12.8% |
| Operating income | 345,090,000 | 309,969,000 | 11.3% |
| Net income | (a) 214,866,000 | 191,234,000 | 12.4% |
| Earnings per share | 1.81 | 1.60 | 13.1% |
