Williams-Sonoma posts strong Q4

Williams-Sonoma reported net revenues increased to $1.5 billion in the fourth quarter ended Feb. 2 from $1.4 billion in the prior-year quarter. This year’s fourth quarter had just 13 weeks compared with last year’s fourth quarter, which had 14; excluding the additional week in the prior-year quarter, net revenues grew 10%.

Net earnings totaled $133.8 million, up from $133.7 million in the prior-year fourth quarter.

Williams-Sonoma president and CEO Laura Alber credited the strength of the company’s brands across retail and e-commerce for its performance in the fourth quarter ended Feb. 2.

“Williams-Sonoma outperformed the retail industry this holiday season, gaining market share and demonstrating the structural advantage of our multi-brand, multi-channel platform,” said Alber. “We executed our strategic plan, investing in our brands and the supporting infrastructure to ensure sustainable long-term growth both domestically and around the world. The results speak for themselves: we delivered strong top and bottom line performance, which combined with over $350 million in share repurchases and dividends generated superior returns for our stockholders.”

Direct-to-customer (DTC) net revenues in the quarter increased to $706 million from $634 million in last year’s quarter. Excluding the additional week in the prior-year quarter, DTC net revenues grew 19%, primarily driven by Pottery Barn, Pottery Barn Kids, West Elm and Williams-Sonoma. DTC net revenues generated 48% of total company net revenues in the quarter, compared with 45% in prior-year quarter.

Retail net revenues in the quarter were $760 million versus $773 million in the prior-year quarter. Excluding the additional week in last year’s fourth quarter, retail net revenues grew 2.7%, primarily driven by Pottery Barn and West Elm, partially offset by a decrease in Williams-Sonoma and the company’s international franchise operations.