William-Sonoma Inc. posted net revenues of $1.04 billion in the second quarter, a 5.8 percent increase from the $982 million tallied in the year-ago quarter, and same-store sales increased 5.7 percent.
“We are pleased to have delivered another quarter of solid performance, once again demonstrating the competitive advantages resulting from our multi-brand, multichannel business model,” said Laura Alber, president and CEO. “We enter the second half of 2014 well-positioned across our brands from a marketing, merchandise offering, store and online experience standpoint. We remain focused on disciplined execution against our growth initiatives and a balanced approach to capital allocation to continue to drive shareholder value.”
While Q2 result were strong and met Wall Street expectations, the company’s tempered guidance figures of between 4 percent and 6 percent comparable brand growth for the third quarter back-to-school period caused company shares to fall by double digits last week.
Meanwhile, the Williams-Sonoma brand experienced a dramatic rebound in the second quarter with comp revenue growth of 3.4 percent, up from a negative 0.4 percent in the prior year quarter, making it the fourth consecutive quarter of positive comps for brand.
“Our proprietary and exclusive product strategy, field leadership, better visuals and cohesive marketing strategies are driving the improved results,” Alber said during a recent earnings call with analysts, noting that performance was strong in the cutlery, tabletop, electrics, cookware and food categories. “We are thrilled to see increased new customer accounts in the Williams-Sonoma brand. Open Kitchen, a new proprietary collection of beautiful, affordable, everyday essentials, is just one of the drivers bringing new customers to the brand. Additionally, Williams-Sonoma Home continues to outperform our expectations. We have an aggressive plan for its future.”
Looking toward the third quarter, Alber said the brand has a strong lineup of exclusive products such as the new TK line by All-Clad designed by Thomas Keller. “It is a mixed materials line that allows home cooks to use the right pans for every technique or dish that they are creating,” she said. “Under our own Williams-Sonoma brand, early reads on two important launches of cooks’ tools and cutlery are also strong. Also, we feel good about our autumn assortment and Halloween as we help our customers decorate and entertain this fall.”
While focused on the future, the brand is also celebrating its rich history, reopening Chuck Williams’ original store in Sonoma, Calif., on his 99th birthday in October. “We are excited to be celebrating this important milestone with Chuck,” she added.
