Williams-Sonoma Profits Up 27.8% in Quarter
Larry Thomas -- Furniture Today, September 3, 2011
SAN FRANCISCO - Aided by a double-digit increase in its e-commerce business, retailer Williams-Sonoma said its profits for the quarter ended July 31 jumped 27.8% from a year earlier.
The company, whose retail brands include Pottery Barn, Pottery Barn Kids and West Elm, said total revenues were up 5.1% in the quarter, but e-commerce revenues leaped 18.4%.
Of the $814.8 million in total revenues, some 45.2% were classified as direct-to-customer, a figure that includes e-commerce and catalog sales. The remaining 54.8% of revenues came from its brick-and-mortar stores. In the same quarter last year, when revenues were $775.6 million, 42% of the total was direct-to-customer and 58% came from retail stores.
The quarterly profit totaled $39.3 million or 37 cents per share. That compares with $30.8 million or 28 cents per share in the same quarter last year.
"The second (fiscal) quarter was another strong quarter for our company," said Laura Alber, president and CEO. "We continued to drive increased traffic and conversion in e-commerce, expand the reach of West Elm, and extend our international presence."
Williams-Sonoma no longer reports same-store sales, but said comparable brand revenue growth - a figure that includes same-store sales and direct-to-customer revenues - rose 3.6% at Pottery Barn, 8% at Pottery Barn Kids and 28.6% at West Elm.
For the six months ended July 31, revenues were up 6.2% to $1.59 billion. The company said 55.1% of the total came from retail stores and 44.9% was direct-to-customer revenues.
Six-month profits totaled $70.9 million or 66 cents per share. That's an increase of 41% from $50.3 million or 46 cents per share in the same period in 2010.
"As we look forward to Q3, we believe that our innovative merchandising strategies, multi-channel marketing reach, strong value proposition, and superior customer service will allow us to continue to deliver leading results in the home furnishings category," said Alber. "While there is clearly more uncertainty in the economy now than in Q2, we are encouraged by the early consumer response to our core and seasonal merchandise assortments."
As of July 31, the company operated 586 stores - 268 Williams- Sonoma, 200 Pottery Barn, 83 Pottery Barn Kids and 35 West Elm stores. The total includes 18 Williams-Sonoma and Pottery Barn outlet stores that previously were listed separately, but recently were reclassified into their respective brands.
Williams-Sonoma | |||
Owns Pottery Barn, Pottery Barn Kids, Pbteen and West Elm Earnings per share are fully diluted. | |||
13 weeks ended 7/31 | 2011 | 2010 | Change |
Revenues | $814,750,000 | $775,554,000 | 5.1% |
Operating income | 64,085,000 | 51,197,000 | 25.2% |
Net income | 39,309,000 | 30,759,000 | 27.8% |
Earnings per share (a) | 0.37 | 0.28 | 32.1% |
26 weeks ended 7/31 | 2011 | 2010 | Change |
Revenues | $1,585,575,000 | $1,493,191,000 | 6.2% |
Operating income | 116,185,000 | 83,658,000 | 38.9% |
Net income | 70,924,000 | 50,297,000 | 41.0% |
Earnings per share (b) | 0.66 | 0.46 | 43.5% |
| (a) Includes asset impairment and early lease termination charges of 2 cents per share in
2010. (b) Includes asset impairment and early lease termination charges of 1 cent per share
in 2011 and 6 cents per share in 2010. | |||
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