The parent company of furniture retail brand West Elm has reported a decline in second quarter sales.
According to its latest trading update for Q2 ended 28 July 2024, Williams-Sonoma, Inc. reported overall sales for the second quarter of $1.7bn, down 3.3% from $1.8bn on the same period last year. Net earnings increased to $225.7m from $201.5m.
Its West Elm brand saw revenues fall 4.8% to $459m from $484m, while the Williams Sonoma brand registered a slight decline of 0.8% to $240m from $245m. Pottery Barn sales fell 7.1% to $726m.
Over the half year period, total sales stood at $3.4bn, down from $3.6bn, while net earnings resulted at $491.1m, up from $358m.
Laura Alber, President and Chief Executive Officer, said: “We are reporting strong results for the second quarter of 2024, which were driven by our Q2 improved top-line trend, market-share gains, and continued delivery on our commitment to profitability.
“In Q2, our comp came in at -3.3%, and we exceeded profitability estimates with an operating margin of 16.2% and earnings per share of $1.74, reflecting the 2-for-1 stock split we completed in July. We are pleased with our operating results. Our revised outlook today reflects our prudent view of the top-line, and the confidence we have in our profitability profile.
“We now expect full year revenues to come in at a range of down 4.0% to down 1.5%, but we are raising our guidance on operating margin to be in the range of 17.4% to 17.8%. The reduction in our revenue outlook is offset by our raised operating margin guidance.”
