Williams-Sonoma 4Q profit rises 2.9%
Pottery Barn same-store sales decline 1.5%
By Larry Thomas -- Furniture Today, March 31, 2008
San Francisco — Retailer Williams-Sonoma said its fourth-quarter profits edged up 2.9% despite a drop in same-store sales at its Pottery Barn chain.
The company, which also operates the Williams-Sonoma, West Elm and Williams Sonoma Home chains, said total revenues for the 14-week quarter ended Feb. 3 came to $1.37 billion. That's up from $1.25 billion in the 13-week fourth quarter of the previous fiscal year.
Net income totaled $124.6 million or $1.15 per share. That compares with $121.1 million or $1.06 per share in last year's fourth fiscal quarter.
"We are pleased with these results and believe they once again reflect the strength of our brands, the marketing power of our multi-channel strategy and our ability to execute our business in difficult economic times," said Howard Lester, chairman and CEO.
Lester said revenues from catalog and Internet sales rose 12.5% during the quarter, while revenues from retail stores rose 7.7%.
Same-store sales were up 1.1% at the Williams-Sonoma chain, but declined 1.5% at Pottery Barn. Same-store sales at Pottery Barn Kids were down 2.4%.
For the 53-week fiscal year ended Feb. 3, total revenues were up 5.8% to $3.95 billion. Net income declined 6.3% to $195.8 million or $1.76 per fully diluted share.
As of Feb. 3, the company operated 600 stores, including 256 Williams-Sonoma locations, 198 Pottery Barn, 94 Pottery Barn Kids, 27 West Elm and nine Williams-Sonoma Home.
| Williams-Sonoma | |||
|---|---|---|---|
| Owns California Closet, Chambers, Gardener's Eden, Hold Everything and Pottery Barn | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 2/3 | 2008(a) | 2007(a) | Change |
| (a) For 14 weeks in the 2008 period and 13 weeks in the 2007 period (b) For 53 weeks in the 2008 period and 52 weeks in the 2007 period (c) Includes direct-to-consumer revenues of $527.8 million in the 2008 14 weeks, $469.1 million in the 2007 13 weeks, $1.7 billion in the 2008 53 weeks and $1.6 billion in the 2007 52 weeks. |
|||
| Revenues (c) | $1,374,355,000 | $1,254,933,000 | 9.5% |
| Operating income | 197,219,000 | 195,237,000 | 1.0% |
| Net income | 124,564,000 | 121,064,000 | 2.9% |
| Earnings per share | 1.15 | 1.06 | 8.5% |
| Year ended 2/3 | 2008(b) | 2007(b) | Change |
| Revenues (c) | $3,944,934,000 | $3,727,513,000 | 5.8% |
| Operating income | 313,398,000 | 327,501,000 | (4.3%) |
| Net income | 195,757,000 | 208,868,000 | (6.3%) |
| Earnings per share | 1.76 | 1.79 | (1.7%) |
