San Francisco-based multichannel marketer Williams-Sonoma (NYSE: WSM), which mails several catalog brands including Williams-Sonoma, Pottery Barn, Pottery Barn Kids, PBteen, Hold Everything, West Elm, and Williams-Sonoma Home, continues to crank out solid financials.
The company’s net earnings increased 19% to $28.5 million for the quarter ended Oct. 31, compared with $23.9 million last year. Third quarter net revenue, including shipping fees, increased 14% to $722.8 million, compared with $632.8 million last year. Third quarter direct-to-customer net sales increased 18% to $281.5 million, compared with $239.3 million last year. This increase was primarily driven by net sales generated in the Pottery Barn, PBteen, West Elm, and Pottery Barn Kids brands. Web sales for the quarter increased 44% to $118.3 million compared to $82.4 million last year. The company says that early results from the first Williams-Sonoma Home catalog in the third quarter were “encouraging.”
Depsite the rosy results, the company pulled back some on reporting guidance for the remainder of the year. Williams-Sonoma said direct-to-customer net sales are projected to be in the range of $1.152 billion to $1.162 billion, compared with previous guidance of $1.155 billion to $1.170 billion. Direct-to-customer net sales were $966.4 million last year.
Catalog circulation is projected to increase in the range of 11% to 13%, compared with previous guidance of 12% to 14%. Last year catalog circulation increased 17%.