Pottery Barn, West Elm fuel Williams-Sonoma’s Q3 gains

SAN FRANCISCO — Top 100 retailer Williams-Sonoma, Inc. posted another strong quarter with gains in net revenues, income and earnings per share, led by its Pottery Barn and West Elm brands.

The San Francisco-based group posted net revenues of $2.193 billion in the quarter ended Oct. 30, up 8.1% compared with $2.048 billion in the same timeframe in 2021.

Among individual brands, Pottery Barn reported net revenues of $935 million, up 19.6% over $789 million a year ago, while West Elm was up 4.2%, taking in $600 million in revenue in Q3 of 2022 vs. $580 million in the same quarter of 2021.

Net profits for the quarter came in at $251.7 million, up slightly from 2021’s $249.5 million. On a diluted per-share basis, Williams-Sonoma reported gains of $3.72, a jump of 13.07% from $3.29.

“We are proud of another strong quarter generating an 8.1% comp, or a 25% two-year comp and an almost 50% three-year comp, with record EPS growth of 12% over last year to $3.72 per share,” said Laura Alber, president and CEO of Williams-Sonoma, Inc. “These results reflect the continuation of backlog order fulfillment, strong product margins and disciplined cost control.”

Added Jeff Howe, chief financial officer, “We delivered another quarter of record revenues and earnings in a challenging environment. Our topline results illustrate our ability to gain market share. Our bottom-line results demonstrate the power of our operating model to sustain merchandise margin and control SG&A expenses.”

Year-to-date, Williams-Sonoma reported net revenues of $6.221 billion, an increase of 8.29% from 2021’s $5.745 billion. Net profits through nine months were reported at $772.911 million, an increase of 6.84% compared with $723.396 million three quarters into 2021. Diluted earnings per share came in at $11.08, up 17.87% from 2021’s $9.40.

With its earnings reported, Williams-Sonoma is maintaining its fiscal 2022 guidance of mid-to-high single digit net revenue growth. Officials said they will provide 2023 guidance when the fourth quarter’s earnings are reported, and given uncertain macro conditions, it will not reiterate or update guidance through fiscal year 2024.

“Although the macro backdrop has become more uncertain, we believe our strong positioning, growth initiatives, and culture of financial discipline will allow us to outperform in any environment,” Alber said.

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