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San Francisco – Williams-Sonoma Inc. is sailing into the holiday selling season with the wind at its back as third quarter earnings beat expectations. The multi-nameplate company also said it now derives more than 51% of its revenue from e-commerce.
Williams-Sonoma Inc. is reclassifying what it used to refer to as its direct-to-consumer business – revenues from catalog and online sales – as e-commerce. During the company’s quarterly conference call with analysts yesterday afternoon, executives said 90% of the channel’s sales are generated online.
E-commerce sales jump 14.7% during to the quarter to $587 million, with the biggest contributions coming from Pottery Barn and West Elm.
Other segment highlights:
- Williams-Sonoma Home, the higher-end home furnishings brand that is being selectively re-introduced with a broader assortment, turned in a solid performance, with furniture and textiles leading the way.
- Pottery performance was driven by its proprietary upholstery collections made in the company’s Sutter Street facility and unique bedroom furniture collections.
- Pottery Barn Kids’ sales were strongest in nursery and furniture thanks in part to a wider array of design choices and a more expansive custom upholstery range. PBteen’s best results came from furniture, textiles and decorative accessories.
- Total corporate revenues for the quarter ended Nov. 3 rose 3.1% to $556 million. West Elm was the leader in same-store sales growth, with comp up 17.4%.
- PBteen’s comps were up 11.7%, followed by Pottery Barn Kids (up 8.6%), Pottery Barn (up 7%) and Williams-Sonoma (up 4.3%).
Net earnings increased 5.7% to $64.9 million.
