Textiles a Leader in Williams-Sonoma Strong 1Q
GDA Staff -- Gifts & Dec, May 24, 2011
SAN FRANCISCO - Aided by its fast-growing catalog and Internet businesses, Williams-Sonoma Inc. said its net income jumped 62% in the quarter ended May 1, with textiles called out as a leading category at Pottery Barn, Pottery Barn Kids and West Elm.
Company executives credited the strength of its multichannel platform, particularly online community building and marketing investments.
"I think the usual suspects are beginning to lose [market] share," president and ceo Laura Alber told analysts. "They're waiting for the customer to show up. If you're a traditional retailer, you may have a web site, but it's secondary."
Ecommerce in the first quarter accounted for 38% of sales - a new high. Web traffic was up 25%. And while the number of email marketing pieces delivered during the period rose only 2%, the conversion rate jumped 20%.
Performance exceeded expectations almost across the board. Williams-Sonoma Inc. net income of $31.6 million or 29 cents per share. Revenues increased 7.4% to $770.8 million.
Revenues from the company's catalog and internet businesses were up 12.5% and accounted for 44.6% of total revenues.
Retail store revenues increased 3.6%, and the company said same-store sales across all of its brands rose 6.7%.
Williams-Sonoma did not provide same-store sales for individual formats, but said comparable brand revenue growth rose 7.9% for Pottery Barn and 10.9% for Pottery Barn Kids. Comparable brand revenue growth includes same-store sales and revenues from catalog and internet sales.
Alber said the company's five franchise stores in Dubai, Kuwait and Saudi Arabia are performing well and another five will be added later this year. Williams-Sonoma Inc. also plans to launch international ecommerce this year.
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