Williams-Sonoma Sees Double-Digit Net Income, Sales Gains

San Francisco-based multititle cataloger/retailer Williams-Sonoma, which mails the Williams-Sonoma, Pottery Barn, Pottery Barn Kids, PBteen, Hold Everything, West Elm, and Chambers titles, posted handsome gains on both sides of the ledger.

Net earnings increased 55% to $27.6 million for the quarter ended Aug. 1, compared with $17.8 million last year. Net revenue, including shipping fees, increased 19% to $689.6 million, compared with $580.4 million last year. Direct-to-customer shipping fees increased 21% to $44.8 million compared with $36.9 million last year.

Direct-to-customer net sales (including catalog and Internet) increased 27% to $262.0 million, compared with $206.3 million last year. The company says the increase was driven by sales in the Pottery Barn, PBteen, and Pottery Barn Kids brands.

With the exception of bed and bath title Chambers-which mailed its final “transition” catalog during the quarter in preparation of the launch of Williams-Sonoma Home-all the catalog brands showed positive growth during the quarter. Internet sales increased 60% to $111.0 million, compared with $69.3 million last year.

Retail net sales increased 14% to $380.7 million, compared $335.3 million last year. This increase was primarily driven by the addition of 33 stores and a 5% comparable store sales increase. Net sales generated in the Pottery Barn and Pottery Barn Kids brands were the primary contributors to the year-over-year sales increase. But retail gains were partially offset by lower Hold Everything sales, as the company operated six fewer Hold Everything stores this year vs. last year.

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