Williams-Sonoma posts Q2 revenue, earnings increases
Larry Thomas -- Furniture Today, August 29, 2013
SAN FRANCISCO — Paced by its Pottery Barn and West Elm brands, retailer Williams-Sonoma recorded double-digit revenue and earnings increases in the second quarter.
The company said its comparable-brand revenue growth, which accounts for catalog and Internet sales in addition to brick-and-mortar stores, rose 8.4%. The West Elm brand had the biggest comparable brand increase at 16.5%, while Pottery Barn racked up a 9.9% increase.
"Our second quarter results demonstrate the strong demand for our brand and the profitability of our multi-channel, multi-brand platform," said Laura Alber, president and CEO. "We achieved sales and profit levels that exceeded our expectations while making investments in our growth objectives and in the infrastructure to support them."
Revenues for the quarter ended Aug. 4 were $982.2 million, up 12.3% from $874.3 million in last year's second quarter. The company said retail stores accounted for 51.4% of revenue in the most recent quarter, while catalog and Internet revenues accounted for 48.6%.
Net income for the quarter totaled $48.9 million, or 49 cents per share. That's an increase of 12.8% from $43.4 million, or 43 cents per share, in last year's second quarter.
Results for the first six months of Williams-Sonoma's fiscal year were similar. Six-month revenues rose 10.5% to $1.87 billion, while net income was up 19.3% to $88.4 million, or 89 cents per share.
Alber said the retailer also is raising its revenue and earnings estimates for the year.
Revenues are now projected at $4.26 billion to $4.34 billion. That's up from a May estimate of $4.22 billion to $4.3 billion.
Earnings per share are now projected at $2.69 to $2.79, up from the May estimate of $2.67 to $2.77.
"Longer term, we remain confident in our ability to continue to grow sales, maximize profitability and capture market share as we build on our successes across brands and geographies," Alber said.
As of Aug. 4, the company had 590 retail stores, including 253 Williams-Sonoma, 196 Pottery Barn, 86 Pottery Barn Kids and 51 West Elm locations.
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