Williams-Sonoma Net Jumps 19 Percent in Third Quarter



SAN FRANCISCO–In what President and CEO Laura Alber called “another strong quarter for the company,” Williams-Sonoma posted a 19 percent increase in third-quarter net income, to $43.4 million.

Sales increases, particularly in the company’s direct-to-consumer segment, helped firm the bottom line in the quarter, which ended on Oct. 30. Net sales were up 6.3 percent to $867.2 million, including a 9.9 percent gain in direct-to-consumer sales which was driven in a major way by a 27 percent rise in sales at Williams-Sonoma’s West Elm segment. At the retail end, sales rose 3.6 percent, including a same-store sales increase of 6.3 percent.

The revenue increase along with reduced occupancy expenses allowed Williams-Sonoma to post a 10 basis-point pickup in gross margin, to 38.3 percent. Selling, general and administrative expenses were up 3.2 percent in dollars but down 90 basis points as a percentage of sales, to 30.4 percent.

Alber said the signs for the fourth quarter are good for Williams-Sonoma. Its initiatives in assortments, value proposition and its multichannel shopping experience “will allow us to continue to deliver leading results in the housewares and home furnishings categories,” she said.

Posted in News, Retail.

Last updated: November 17, 2011