SAN FRANCISCO–Healthy gains in both revenues and gross margin helped Williams-Sonoma to a 398.6 percent increase in net income for the third quarter, to $36.5 million.
Net revenues in the quarter, which ended on Oct. 31, rose 12 percent to $815.5 million, reflecting double-digit sales gains in same-store sales at the company’s Pottery Barn, Pottery Barn Kids and outlet locations. Gross margin jumped 350 basis points to 38.2 percent, thanks to the increase in revenues, stronger selling margins and a decrease in occupancy expenses. While selling, general and administrative expenses increased 4.8 percent in dollars, they fell as a ratio of revenues by 310 basis points to 31.3 percent.
Laura Alber, Williams-Sonoma’s president and chief executive officer, said the company has seen “a positive consumer response to our merchandising, marketing and customer-service strategies, including the new strategies we have launched for this year’s holiday season.” Thanks to this and the third-quarter results, Alber said the company now expects a 3 to 6 percent rise in fourth-quarter revenues, and an increase of 11 to 12 percent in revenues for the full fiscal year.