The parent company of furniture retail brand West Elm has reported a record year of revenues.
According to the latest full year results, Williams-Sonoma, Inc. reported overall sales of $8.6bn, up 6.5% on the same period last year.
Its West Elm brand saw revenues jump 2.5% to $2.2bn, while the Williams Sonoma brand registered a decline of 1.7% to $1.2bn. Pottery Barn sales rose 14.9% to $3.5bn.
Operating income resulted at $1.4bn, while net earnings stood at $1.1bn. Gross margin of 42.4%, deleveraging 160bps, was primarily driven by higher shipping and freight costs, with merchandise margins flat to last year. Occupancy costs increased 7.9% to $785.4m.
Looking ahead, in fiscal 2023, the company expects annual net revenue growth in the range of -3% to +3% with an operating margin between 14% to 15%. In the long-term, it expects mid-to-high single-digit annual net revenue growth with operating margin above 15%.
“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 topline, and record earnings of $16.54 per share. 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,” said Laura Alber, President and Chief Executive Officer.
“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.”
