Textiles help Wiliams-Sonoma post strong Q2 results

Readying another nameplate launch

HTT Staff -- Home Textiles Today, 8/22/2012 12:29:09 PM

San Francisco - Williams-Sonoma Inc. singled out textiles among the key drivers of its strong business during the second quarter, when the company reported increases in sales and comps.
The multi-nameplate corporation is also planning to expand its reach with the November launch a new direct-to-consumer brand. More details about the effort will be shared in the fall, according to president and ceo Laura Alber.
Net earnings for the quarter ended July 29 climbed 10.4% to $43.38 million, or 43 cents per share.

Total sales rose 7.3% to $874 million. Direct-to-customer (DTC) sales were up 12.6% to $414 million, with increases across all brands. Growth was led by Pottery Barn and West Elm as well as incremental net revenues from Rejuvenation, a single lighting and hardware store concept W-S opened in Berkeley, Calif. E-commerce net revenues increased 13.9% to $361 million. Williams-Sonoma, West Elm, Pottery Barn and Pottery Barn Kids.

DTC accounted for 47% of total revenue, up from 45% a year ago.

Total comp sales were up 7.4%. Comps performance by nameplate was:

• Pottery Barn, up 11.7%;
• Williams-Sonoma, down 0.4%;
• Pottery Barn Kids, up 3.8%;
• West Elm, up 15.6%;
• PBTeen, up 0.8%.

Alber noted that PBTeen's "demand is showing steady improvement from the first quarter" aided by a "strong response to textiles led by our dorm initiative and new fall assortments."

To build on the momentum, PBTeen recently partnered with Burton Snowboards for an exclusive collection of teen-oriented textiles and decorative accessories.

West Elm saw double-digit growth in textiles, furniture, decorative accessories and lighting. In the third quarter the brand plans to broaden the product assortment, particularly in the seasonal and gift-giving categories, and will add five more stores.

Year-to-date, net earnings climbed 4.5% to $74.1 million, or 73 per share. Total sales were up 6.7% to $1.7 billion.