Williams-Sonoma, Inc. (NYSE: WSM)
San Francisco-based Williams-Sonoma revealed upbeat earnings and revenue for its fiscal second quarter on Wednesday.
Same-store store sales of the home furnishings and cookware retailer also came out higher that Wall Street had predicted. Further, the company lifted its outlook for both the current quarter and the full year.
Williams-Sonoma has been under siege by Amazon in recent years just like other retailers. However, the company has been partnering with other firms, such as DDK to match competition and increase its revenue basket.
WSM Earnings & Outlook
The retailer said net income dropped to $51.7 million, or $0.62 per share, from $52.9 million, or $0.61 per share, in the same period last year. Excluding non-recurring items, adjusted earnings per share came to $0.77, ahead of Thompson Reuters estimate of $0.68.
Net sales grew 6.1% from a year ago to $1.28 billion surpassing the analyst consensus of $1.26 billion, with online sales rising 53.7% from the year-ago period.
The specialty retailer hopes to report adjusted per-share earnings of $0.90 to $0.95 and revenue of $1.36 billion to $1.38 billion for the current quarter.
Thompson Reuters, based on analyst predictions, expects earnings of $0.94 per share on sales of $1.35 billion. For the full year, the company expects EPS of $4.26 to $4.36 from its earlier guidance of $4.15 to $4.25. Analysts are for full-year earnings of $4.24 per share.
Williams-Sonoma CEO Comments
“Today, we are announcing another quarter of strong results with topline growth at the high-end of guidance, gross margin significantly above last year and a substantial EPS outperformance. Our powerful multi-channel, multi-brand platform, together with our strong execution of our strategic initiatives in digital leadership, product innovation, retail transformation and operational excellence are having a positive impact on all parts of our business. Given the results in the first half and the momentum our initiatives are creating, we are raising our full-year guidance for net revenues, comp revenue growth, operating margin and EPS,” commented Laura Alber, President and Chief Executive Officer.
Williams-Sonoma, Inc. Company Profile
Williams-Sonoma, Inc. engages in the provision of multi-channel specialty retailer. The company operates through the E-commerce and Retail segments.
The E-commerce segment comprises of the following merchandising strategies: Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, PBteen, Williams-Sonoma Home, Rejuvenation, and Mark and Graham, which markets its products through its e-commerce websites, and direct-mail catalogs.
The Retail segment includes franchise operations, and has the following merchandising strategies: Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm and Rejuvenation, which sell its products through its retail stores.
The company was founded by Charles E. Williams on September 15, 1956 and is headquartered in San Francisco, California. –CNN