SAN FRANCISCO - Furniture retailer Williams-Sonoma went big in the second quarter, nearly doubling e-commerce sales and accelerating year-over-year sales across most of its brands.
E-commerce sales climbed 46 percent for the quarter ending August 2, amounting to nearly 76 percent of its total sales. Physical store sales also fared well, rising 10.5 percent on a predicted 8.4 percent.
“We delivered an exceptional second quarter with net comp growth of 10.5% and demand comp growth of almost 19%, operating margin expansion to nearly double that of last year, and record earnings growth of over 100%,” said Laura Alber, president and CEO. “E-commerce again drove our results, and our stores performed better-than-expected, improving throughout the quarter as we reopened."
Net revenue grew nearly 9 percent to just under $1.5 billion. Interestingly, the company's shares fell around 5 percent after the report, indicating that investors had even greater expectations.
Regarding long-term prospects, Alber said "we believe the behavioral changes and industry shifts that have emerged from the pandemic will persist and continue to favor our business. We are investing in the next phase of our growth and the opportunities that position us for accelerated market share gain.”
Alber said the company will accelerate digital growth and "fundamentally shift the channel mix of its business", focusing on content marketing and building customer relationships.
Williams-Sonoma Inc. operates more than 600 retail stores internationally under a portfolio of brands including Pottery Barn, Pottery Barn Kids, PBteen, Williams-Sonoma, Williams-Sonoma Home, West Elm, Mark and Graham, Rejuvenation, and Sutter Street Manufacturing in North Carolina. It has seen annual sales increases since 2018.
Have something to say? Share your thoughts with us in the comments below.