Williams-Sonoma rode fourth-quarter comp sales and earnings gains to top $1 billion in profits for the 2024 fiscal year, as non-furniture categories, including housewares and home decor, fueled the company’s momentum.
Net earnings were $410.7 million, or $3.28 per diluted share, versus $354.4 million, or $2.72 per diluted share, in the year-prior quarter.
A fourth-quarter analyst consensus estimate published by Yahoo Finance called for earnings per diluted share of $2.94 and revenue of $2.35 billion.
In the quarter, comparable sales slipped 0.5% at Pottery Barn year over year but increased 5.7% at Williams Sonoma, 4.2% at West Elm and 3.5% at Pottery Barn Kids and Teen. Total company comps increased 3.1% year over year.
Net revenue was $2.46 billion versus $2.28 billion in the year-previous quarter, the company reported. Operating income was $530.1 million versus $458.1 million in the year-before period.
For the full fiscal year, Williams-Sonoma net earnings were $1.13 billion, or $8.79 per diluted share, versus $949.8 million, or $7.28 per diluted share, in the year prior.
Net revenue was $7.71 billion versus $7.75 billion in the year previous, the company noted. Operating income was $1.43 billion versus $1.24 billion in the year before, while adjusted operating income was $1.68 billion versus $1.57 billion.
Laura Alber, Williams-Sonoma president and CEO, said in a conference call the company saw a rebound in furniture sales in fiscal 2024, but she added “a key component of our growth strategy is our robust non-furniture assortment that includes inspirational seasonal and decorative accessories, textiles and housewares. We believe this puts us in a much better competitive position than our peers who are overly dependent on furniture.”
Alber pointed out although better furniture sales trends helped, non-furniture merchandise was key to driving a stronger comp performance that turned positive in the fourth quarter after a period of negative results.
She maintained the Williams Sonoma banner offered a strong fourth-quarter assortment of gifts and holiday hosting and entertaining merchandise that produce strength in the cookware, cutlery and electrics categories, while seasonal and decorative accessories helped lift results in the bakeware, tabletop, housewares, food and garden categories.
Alber also revealed a “dramatically” expanded lineup of Pottery Barn dorm room products would roll out in time for the back-to-school season.
In announcing the financial results, Alber said, “We are proud of our strong finish to 2024. In Q4, our comp came in above expectations at positive 3.1%. We exceeded profitability estimates with an operating margin of 21.5% and earnings per share of $3.28. This success was fueled by the strength of our operating model, our standout seasonal offerings, our impactful collaborations and a strong improvement in both retail and online furniture sales. On the full year, our comp ran down 1.6%. We delivered a record annual operating margin of 17.9% with full-year earnings per share of $8.50. Looking to 2025, we are confident in our strategies and competitive positioning. Despite an uncertain backdrop, we have been, and will continue to be, focused on returning to growth, enhancing our world-class customer service and driving earnings.”
