SAN FRANCISCO – With all its retail banners generating positive comps, Williams-Sonoma Inc. bested its profitability estimates in the second quarter.
The company saw growth in both its furniture and non-furniture categories, with total revenues up 2.7% to $1.8 billion for the quarter ended Aug. 3. Consolidated comp rose 3.7%.
The results by retail nameplate included:
Pottery Barn: Net revenue was essentially flat at $724.6 million, with comp up 1.1% compared to a 7.1% comp decline in the year-ago quarter.
West Elm: Net revenue was up 2.1% to $468.6 million, with comp up 3.3% compared to a 4.8% decline in the year-ago quarter.
Williams Sonoma: Net revenue was up 8.0% to $249.1 million, with comp up 5.1% compared to a 0.8% decline in the year-ago quarter.
Pottery Barn Kids and Teen: Net revenue was up 10.5% to $286.7 million, with comp up 5.3% on top of a 1.5% gain in the year-ago quarter
Combined revenues from Rejuvenation, Mark and Graham, international franchise operations and GreenRow rose 2.9% to $107.8 million.
The company’s merchandise inventories jumped 17.7% year-over-year to $1.4 billion as Williams-Sonoma Inc. pulled forward receipts to reduce the impact of higher tariffs.
Net earnings climbed 14.2% to $247.6 million, or $2.00 per diluted share.
Following the announcement of its Q2 results, Williams-Sonoma Inc. hiked its top-line guidance for the full fiscal year. It now expects net revenues to increase in the range of 0.5% to 3.5%, with comps up from 2.0% to 5.0%.
