Sonoma boosts profits in 3Q
Staff -- Home Textiles Today, 11/26/2001
SAN FRANCISCO — In spite of the tough retail climate, Williams Sonoma Inc. delivered a positive third quarter in terms of financial results.
The retailer boosted its net profit for the quarter by nearly 65 percent compared to last year, reaching almost $3.9 million. Its operating income rose to $8 million, more than 9 percent better than the same figure for last year's third quarter.
Revenues increased by nearly 9 percent in the quarter, to $462.1 million. Within that figure, the retailer posted retail sales of $257.6 million, up more than 15 percent over last year's third quarter. The company managed that impressive growth despite posting a same-store sales decline of 1.1 percent for the quarter.
Dale Hilpert, ceo, credited a rebound in Pottery Barn's sales for the positive overall sales picture. Pottery Barn reported a same-store sales increase of 2.6 percent in October, its best monthly total of the year, according to Hilpert.
Williams-Sonoma was also successful in monitoring expenses. Its SG&A expenses as a percentage of revenues decreased by 130 basis points, to 34.2 percent. This offset a 140-basis-point decline in the company's average gross margin, which finished the quarter at 35.9 percent.
| QTR 10/28 (X000) | 2001 | 2000 | % CHG |
| Net sales | $462,096 | $424,572 | 8.8 |
| Oper. income (EBIT) | 7,998 | 7,324 | 9.2 |
| Net income | 3,853 | 2,340 | 64.7 |
| Per share (diluted) | 0.07 | 0.04 | 75.0 |
| Average gross margin | 35.9% | 37.3% | — |
| SG&A expenses | 34.2% | 35.5% | — |
| Nine months | |||
| Net sales | 1,308,662 | 1,156,315 | 13.2 |
| Oper. income (EBIT) | 14,143 | 27,084 | -47.8 |
| Net income | 5,697 | 12,241 | -53.5 |
| Per share (diluted) | 0.10 | 0.21 | -52.4 |
| Average gross margin | 35.1% | 36.6% | — |
| SG&A expenses | 34.0% | 34.2% | — |
