SAN FRANCISCO–Williams-Sonoma’s net profit in the second quarter ballooned to $30.8 million, compared to $399,000 for the period last year.
The improvement came about largely because of a 20 percent jump in direct-to-customer revenues, which helped push Williams-Sonoma’s total revenues up 15 percent to $775.6 million in the quarter. This firmed the company’s gross margin by 500 basis points to 37 percent, and offset a 9.6 percent rise in selling, general and administrative expenses.
Laura Alber, president and chief executive officer, said Williams-Sonoma’s second-quarter results were better than the company expected. Alber noted that the 31 cents earnings per share was the highest the company has ever logged in a second quarter.
Alber also said Williams-Sonoma now expects third-quarter revenues to increase in the range of from 7 to 10 percent, and that for the full year, revenues should rise from 9 to 11 percent.