SAN FRANCISCO — Williams-Sonoma Inc. reported third quarter revenues that had been up 16% over the identical interval final yr.
For the quarter ended Oct. 31, internet revenues for the corporate had been as much as $2.05 billion, bringing the income improve to 41.3% over the identical interval in 2019.
“Our efficiency demonstrates that we will proceed to take share in a fractured market, and ship high-quality sustainable earnings,” mentioned Laura Alber, president and CEO, in an earnings launch. “Consequently, we’re elevating our full-year outlook to replicate income development of twenty-two% to 23% and working margins of 16.9% to 17.1%.”
E-commerce income accelerated to 67% of complete firm revenues, and comparable model income development was led by West Elm at 22.5%, adopted by Pottery Barn Youngsters and Teen at 16.9%, Pottery Barn at 15.9% and Williams Sonoma accelerating to 7.6%.
Internet earnings for the quarter was $249.4 million, with diluted earnings per share of $3.29, up from $201.7 million and EPS of $2.54 within the year-ago interval.
“It’s no shock that we have now been intensely centered on the bottlenecks around the globe since we aren’t proof against the ripple impact. We need to share the extraordinary accomplishment that our upholstery lead instances proceed to enhance and are industry-leading,” mentioned Alber on the quarterly earnings name with buyers. “Our in-house home capabilities, our long-term vendor relations and our scale have minimized our manufacturing and supply delays relative to our opponents, and so far, 85% of our vacation stock has been acquired.”
On the decision, Alber mentioned the upholstery enterprise could be very robust, and prospects responded properly to new merchandise, together with bestsellers and bed room, eating and occasional classes. Moreover, new classes resembling tub, children and kitchens additionally contributed to incremental development.
The corporate reported its liquidity place of $657 million in money and greater than $788 million in working money move, enabling the corporate to repurchase an extra $201 million in shares within the third quarter and greater than $650 million year-to-date and to pay greater than $135 million in dividends.
“As we have now mentioned all yr, given our file ranges of profitability, we have now been strategically and aggressively investing in excessive ROI promoting to drive new buyer acquisition, retention, and high line development which clearly is working,” mentioned Julie Whalen, Williams Sonoma govt vp and CFO, on the earnings name. “We proceed to see file new buyer counts and robust demand which has benefited our enterprise so far and can proceed to drive development properly into the long run.”
Williams-Sonoma raised its fiscal yr 2021 outlook to 22% to 23% internet income development and the non-GAAP working margin between 16.9% to 17.1%.
“An important change that we’ve made is to not run site-wide promotions,” Alber added. “And that was a change that we began to check into earlier than the pandemic, after which bought bolder after we noticed the outcomes. And, it actually speaks to the pricing energy that we have now as a result of we’re one of many solely individuals who design and supply their very own merchandise. We’re not promoting different individuals’s issues to the identical extent that quite a lot of different individuals within the house are. So you’ll be able to’t evaluate the worth. We’re not trying to change our price equation, although. Concurrently we have now stopped the promotions, we’re giving our prospects higher worth.”