• Thomas Russell

Williams-Sonoma posts increases for 2Q

West Elm again outperforms its sister brands; PBteens improves slightly, while Pottery Barn Kids lags behind.

SAN FRANCISCO – Williams-Sonoma Inc. reported increases in its 2Q net revenues, net earnings, earnings per share and in most of its comparable brand revenue categories, indicating a reversal in the slow-growth trend in its brands.

Net revenues increased to $1.202 billion, up 3.7% from $1.159 billion reported 2Q last year. Net earnings rose 2% to $52.9 million, from $51.8 million, while earnings per share rose to 61 cents from 58 cents this period last year.

Comparable brand revenue grew for all of the Top 100 company’s categories except Pottery Barn Kids, which continued to perform below prior year levels, down 3.9% for this year’s second quarter compared with last year’s.

PBteen posted a 0.2% increase in comparable brand revenue over the same period year prior, while West Elm again outperformed its sister brands, with a 10.1% increase.

Laura Alber, president and CEO, said, “In Pottery Barn Kids, while comp revenues declined 3.9%, demand revenue was positive” due to strong back-to-school items, textiles, and furniture collections. “In particular,” she added, “nursery furniture continues to grow double digits.” The company is transitioning all nursery furniture to Greenguard certification.

Alber termed PBteen’s 0.2% increase in comp revenue “a significant turnaround” from its 1Q decline of 14.3% compared with the same period year prior. “Furniture continues to deliver positive results, driven by introductions in our bedroom furniture business and expanded lounge seating options.”

E-commerce net revenues of $630.8 million brought in 52.5% of Williams-Sonoma’s total revenues, an increase from $599.7 million, or 51.7% of total revenues, reported in the second quarter a year ago.

Thomas RussellThomas Russell | Associate Editor, Furniture Today

I'm Tom Russell and have worked at Furniture/Today since August 2003. Since then, I have covered the international side of the business from a logistics and sourcing standpoint. Since then, I also have visited several furniture trade shows and manufacturing plants in Asia, which has helped me gain perspective about the industry in that part of the world. As I continue covering the import side of the business, I look forward to building on that knowledge base through conversations with industry officials and future overseas plant tours. From time to time, I will file news and other industry perspectives online and, as always, welcome your response to these Web postings.

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