Williams Sonoma Comparable Sales Jump 9.5% and Soar 50% On Two-Year Basis

Scott Peters
26 May, 2022
New York City

Williams-Sonoma Inc, the specialty home and kitchen goods retailer, reported strong performance after Pottery Barn and West Elm sales sustained momentum. 

Consolidated revenues in the first-quarter ending on May 1 rose 8% to $1.89 billion. 

On a comparable basis, same store sales across all stores increased 9.5% from a year ago and surged 49.9% on a two-year basis. 

Net income in the quarter rose 11.9% to $254.1 million and diluted earnings per share rose to $3.50 from $2.90 a year ago. 

In the quarter, Pottery Barn sales jumped 14.1% to $775 million, West Elm sales increased 12.3% to $536 million, Williams Sonoma sales declined 5.2% to $252 million, and Pottery Barn Kids & Teen dropped 3.8% to $227 million. 

Same stores sales increase in the quarter at Pottery Barn declined to 14.6% from 41.3% a year ago, at West Elm declined to 12,8% from 50.9%, at Williams Sonoma swung to negative 2.2% from 35.3%, and Pottery Barn Kids & Teen dropped to negative 3.1% from 27.6%. 

During the quarter the retailer opened 3 new stores and closed 1 and ended the period with 545 stores. 

In the quarter, the company repurchased $500 million of its shares and paid $58 million in dividends. 

Guidance and Outlook 

The retailer estimated fiscal year 2022 financial performance to be in line with its long-term financial guidance of mid-to-high single digit annual net revenue growth. 

The company reiterated its long-term target of increasing revenues to $10 billion by fiscal year 2024, and operating margins relatively in-line with fiscal year 2021 operating margin between 13% and 14%. 

Company and Stock 

Williams-Sonoma Inc jumped 11.8% to $128.46 after the specialty home and kitchen goods retailer reported quarterly results. 

In the year-so-far, Williams-Sonoma stock has declined 23.05%.