Financial Reports: Sharper Image, Williams-Sonoma, and More

Sharper Image Catalog Sales Rise 20%

San Francisco-based gadgets marketer Sharper Image (Nasdaq:SHRP) posted solid revenue and earnings for its quarter ended Oct. 31. With the third-quarter results, the company is on track to be profitable in all four quarters.

Catalog sales increased 20%, to $39.8 million for the quarter ended Oct. 31, compared with $33.3 million last year. Internet sales increased 36% to $17.4 million from last year’s $12.8 million. Total company revenue increased 24% to $131.1 million from last year’s $106.1 million. Total store sales increased 24% to $70.7 million from $57.2 million in the prior third quarter; comparable store sales increased 10%. The third quarter net earnings were $985,000, improved over last year’s net loss of $504,000.

Earnings Jump 58% at Williams-Sonoma A 28% rise in direct-to-consumer sales helped propel home products cataloger/retailer Williams-Sonoma (NYSE: WSM) to post double-digit top and bottom line gains. Net earnings increased 58% to $23.9 million for the quarter ended Nov. 2, compared with $15.1 million last year. Net revenue increased 20% to $632.8 million compared with $527.9 million last year.

San Francisco-based Williams-Sonoma mails the Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, Williams-Sonoma, Hold Everything, West Elm, and Chambers catalogs. The company’s direct-to-customer net sales, which include catalog and Internet sales, increased 28% to $239.3 million, compared with $187.7 million last year. The increase was driven by incremental net sales in its Pottery Barn, Pottery Barn Teen, and Pottery Barn Kids catalogs. Internet net sales increased 71% to $82.4 million, compared with $48.0 million last year.

Retail net sales increased 15% to $351.4 million compared with $306.1 million last year mainly from 39 new stores. Comparable store sales increased 6%. Incremental net sales generated by the Pottery Barn Kids, Pottery Barn, and Williams-Sonoma brands were the primary contributors to this year-over-year net sales increase.

Selling, general and administrative (SG&A) expenses increased to $210.1 million during the quarter due to increased circulation and higher catalog advertising costs. Last year, SG&A costs totaled $181.5 million.

Direct Sales Fall 9% at Coldwater Sandpoint, ID-based cataloger/retailer Coldwater Creek (Nasdaq: CWTR ) shook off declining net sales from its direct business to post gains in sales and net income. For the quarter ended Nov. 1, net income increased 16%, to $5.6 million, compared with net income of $4.8 million last year. Net sales for the quarter increased 7% to $138.2 million from $128.8 million last year. Direct sales fell 9%, to $83.8 million, compared with $91.6 million last year. The direct segment’s net sales represented 61% of Coldwater’s total net sales in the fiscal 2003 third quarter, compared with 71% last year.

Petsmart Increases Sales and Income Phoenix-based Pet supplies cataloger/retailer Petsmart (NasdaqNM:PETM) reported increased earnings on demand for pet services but sales were lighter than many had expected as a warm spell sapped demand for cold-weather products. Net income for the quarter ended Nov. 2, rose to $29.6 million, compared with $20.6 million last year. Net sales climbed 12%, to $733.7 million, including a 27% jump in pet services. The company opened 23 new stores, closed one location and reformatted 33 stores in the third quarter of 2003. Comparable store sales rose 8% in the quarter.

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.