2010 Big for Sonoma

Cooking and home décor products cataloger/retailer Williams-Sonoma reported solid results for 2010, with record growth across the board.

Consider that the merchant’s direct-to-customer sales rose 17.3%, to $466 million in the fourth quarter. Internet sales for the period jumped 27.2%, to $393 million, from $309 million.

Retail sales increased 5.3%, to $729 million, while same-store sales rose 5.2%. For fiscal year 2010, Williams-Sonoma’s net sales increased nearly 13%, to $3.50 billion, up from $3.10 billion. Internet sales soared nearly 27% while same-store sales rose 9.8%.

The company — which includes Williams-Sonoma, Pottery Barn, Pottery Barn Kids, PBteen, West Elm and Williams-Sonoma Home — made progress in merchandising, marketing, customer acquisition and customer service in 2010, according to president/CEO Laura Alber.

Chris Kampe, managing director for investment firm Tully & Holland, agrees that Williams-Sonoma “appears to be firing on all cylinders.”

Margins are higher due to higher gross margin, efficiencies in supply chain, lower retail operating expenses, and a leveraging of fixed costs over higher sales volume. Kampe explains. And Pottery Barn, which he calls perhaps the most cyclical component of Williams-Sonoma, “has been performing much better.”

Beyond simply better execution, Kampe says Williams-Sonoma is flourishing from the return of consumer spending for discretionary purchases with the end of the recession.

As for the remainder of 2011, Alber said in a statement that Williams-Sonoma will focus on adding new efficiencies in its worldwide supply chain, improving the retail customer experience and expanding the ecommerce business — including the rollout of international shipping.

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.