Williams-Sonoma, conceding a difficult fourth quarter, still managed to make some headway in the period and fiscal year, with the last frame beating a Wall Street earnings estimate even as revenues came up short.
Net earnings were $355 million, or $5.28 per diluted share, versus $402.9 million, or $5.41 per diluted share, in the year-before period. Adjusted for one-time events, diluted earnings per share were $5.50 versus $5.42 in the year-previous period, the company noted.
An analyst consensus estimate by Yahoo Finance called for adjusted earnings per diluted share of $5.46 and sales of $2.6 billion.
Comparable sales gained 5.8% at Pottery Barn, declined 10.7% at West Elm, declined 2.5% at Williams Sonoma and gained 4% at Pottery Barn Kids and Teen for a company total of down 0.6%.
Net revenues were $2.45 billion versus $2.5 billion in the year-prior quarter, the company stated. Operating income was $469.8 million versus $524.6 million in the year-earlier period while adjusted operating income was $487.5 million versus $525.4 million.
For the full fiscal year, net earnings were $1.13 billion, or $16.32 per diluted share, versus $1.13 billion, or $14.75 per diluted share, in the year before quarter. Adjusted net earnings were $16.54 per diluted share versus $14.85 billion in the year previous.
Full-year comps gained 14.9% at Pottery Barn, gained 2.5% at West Elm, declined 1.7% at Williams Sonoma and gained 0.4% at Pottery Barn Kids and Teen for a company total of up 6.5%.
Net revenues were $8.67 billion versus $8.25 billion in the year prior. Operating income was $1.5 billion versus $1.45 billion in the year earlier, while adjusted operating income was $1.52 billion versus $1.46 billion.
Williams-Sonoma CEO Laura Alber cited business-to-business operations as the retailer’s biggest cross-brand growth driver.
“Williams-Sonoma Inc. is no longer just a home furnishings company,” Alber said. “We furnish our customers everywhere from restaurants to hotels, from football stadiums to office spaces. We set the ambitious goal this year to reach a billion in demand in our B2B business, and we came very close, driving 27% year-over-year growth and 166% on a two-year basis. And we continue to win B2B accounts due to our design capabilities and the wide range of products offered in our multi-brand portfolio.”
Amber also pointed to global expansion as a positive, reporting the introduction into India exceeded expectations and better performance online in Canada after a website redesign. She also pointed to new businesses Rejuvenation and Mark & Graham as providing incremental growth: “Together in fiscal 2022, they represented nearly $270 million in revenues and drove nearly a 10% comp on the year,” she said.
Alber acknowledged that macroeconomic factors and higher supply chain costs pressured fourth-quarter results.
“At Williams-Sonoma, Inc., we are proud that, despite the declining macro environment, we delivered another record year of revenue, with a comp of 6.5% on the top line, and record earnings of $16.54 per share,” Alber said. “With our relentless focus on customer service and profitable growth, we continue to outperform our peers, gain market share, and distinguish ourselves as the world’s largest digital-first, design-led, sustainable home retailer. As we look to the long term, we are confident in our continued ability to take market share and to do so, profitably. With our culture of innovation and talent, our values, and the strength of our team, we’re moving ahead with our vision of furnishing our customers everywhere. As we do, we are confident that we will continue to deliver for all our customers, employees and shareholders.”
