SAN FRANCISCO — Specialty home products retailer Williams-Sonoma is reaping the rewards of a rebounding housing market this second quarter ended Aug. 4.
The company’s net revenues grew 12.3% to $982 million versus $874 million in the year-ago quarter with comparable brand revenue growth of 8.4%, on top of 7.4% in the year-ago quarter.
Direct-to-customer net revenues for the quarter were $478 million, up 15.3% from $414 million in the year-ago quarter, and were primarily driven by Pottery Barn, West Elm, PBteen and Pottery Barn Kids. DTC net revenues generated 49% of total company net revenues for the quarter, compared to 47% in the year-ago quarter.
Retail net revenues for the quarter were $505 million, up 9.7% from $460 million in the year-ago quarter, driven primarily by Pottery Barn, West Elm and the company’s international franchise operations, partially offset by a decrease in Williams-Sonoma.
“Our second quarter results demonstrate the strong demand for our brands and the profitability of our multichannel, multi-brand platform,” said Laura Alber, president and CEO. “We generated a 12% increase in revenue and a 14% increase in diluted EPS over last year. We achieved sales and profit levels that exceeded our expectations while making investments in our growth objectives and in the infrastructure to support them.”
“Longer term, we remain confident in our ability to continue to grow sales, maximize profitability and capture market share as we build on our successes across brands and geographies,” added Alber. “We are looking forward to expanding our company-owned retail presence in Australia and entering a new market in the United Kingdom later this year. Additionally, in advancement of our global expansion objectives, we are excited about today’s announcement of a multi-year franchise agreement with Store Specialists, Inc. as the franchisee for our brands in the Philippines.”
Williams-Sonoma operates 590 stores as well as e-commerce sites and direct-mail catalogs under the Williams-Sonoma (cookware and wedding registry), Pottery Barn (furniture and wedding registry), Pottery Barn Kids (kids furniture and baby registry), PBteen (girls bedding and boys bedding), West Elm (modern furniture and room decor), Williams-Sonoma Home (luxury furniture and decorative accessories), Rejuvenation (lighting and hardware) and Mark and Graham (personalized gifts and gifts for the home) banners.