Williams-Sonoma's e-commerce revenue grew 47.9% as the home furnishing trend boosted its business

Williams-Sonoma's e-commerce revenue grew 47.9% as the home furnishing trend boosted its business

The company reported fourth-quarter results for the period ended Jan. 31, with adjusted earnings per share of $3.95 versus $3.39 expected by Wall Street analysts , according to Refinitiv. Revenue of $2.29 billion was $110 million more than the $2.18 billion expected .

 

Laura Alber, president and CEO of Williams-Sonoma, said: "Despite the impact of shipping restrictions and depressed retail traffic, we achieved another quarter of revenue and profit growth in the fourth quarter, with a compound growth rate of 26% and earnings per share growth of more than 85%. "

 

Net income rose to $309 million, or $3.92 per share, from $166 million, or $2.10 per share, in the year-ago period .

 

Excluding items, Williams -Sonoma earned $3.95 per share, topping the $3.39 per share expected by analysts polled by Refinitiv.

 

Revenue rose 24% to $2.29 billion from $1.84 billion a year ago , beating expectations for $2.18 billion.

 

The growth was driven by a 47.9% increase in e-commerce revenue , with about 70% of total revenue coming from its e-commerce business.

 

In the most recent quarter, same-store sales for the entire company increased 25.7%, with all of its brands seeing double-digit sales growth.

 

Its namesake brand, Williams -Sonoma, reported same -store sales growth of 26.2%. Pottery Barn and Pottery Barn Kids and Teen both saw same-store sales growth of 25.7%. West Elm followed closely with a 25.2% same-store sales increase.

 

Retailers expect retail volumes to recover and inventory levels to improve in fiscal 2021.

 

The company said it expects its results to be in line with its long-term financial targets, which call for mid- to high-single-digit revenue growth.

 

Even as vaccination rates increase across the U.S. and routine processes slowly return to normal, retailers remain optimistic about the long-term growth of their brands.

 

Alber expects retailers to get a boost from favorable macro trends that will support their businesses over the long term. She cited factors including higher consumer confidence, a strong housing market, a shift toward e-commerce and the expectation that people will continue to spend more time working from home in the future.

 

During the earnings call, the company also talked about a wide variety of merchandise.

 

“As more people get vaccinated, as travel starts, as schools open, we have a lot of gear and luggage business, ” said Felix Carbullido , the company’s executive vice president and chief marketing officer . “We expect people to open up their homes more, so our dining and entertainment businesses will be ready for that.”

 

The company added that the work-from-home lifestyle, which will continue after the pandemic , will help growth for its furniture brands as more people look to buy desks and other supplies .

 

Williams -Sonoma said it would increase its dividend by 11.3% to 59 cents per share. At the same time, its board of directors approved a plan to repurchase $1 billion of its shares. The new repurchase plan will replace its previous authorization and will take effect on March 17.

 


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