Williams-Sonoma Q2 tops Street; expanding global footprint

San Francisco -- Williams-Sonoma on Wednesday reported better-than-expected second-quarter profit amid same-strong sales. The retailer raised its full-year forecast, but its profit outlook still fell short of market expectations.

The company also announced that it will expand its international presence, adding more stores in Australia and entering the United Kingdom later this year, and debuting in the Philippines in 2014.

Williams-Sonoma said that it earned $48.9 million for the quarter that ended Aug. 4, up from $43.4 million last year.

Total revenue increased 12.3% to $982 million from $874 million. Same-store sales rose 8.4%.

The chain’s revenue from its direct-to-consumer business increased by 15.3% to $477.7 million.

Williams-Sonoma said it has entered into a franchise agreement with Store Specialists Inc. to expand in the Philippines. Pottery Barn and Pottery Barn Kids will be the first brands to debut and are expected to open in Manila in early 2014. The agreement with SSI includes development rights in the Philippines for all brands in the Williams-Sonoma, Inc. portfolio including: Williams-Sonoma, Pottery Barn, Pottery Barn Kids, PBteen and West Elm.

“We believe there is a significant opportunity to extend the reach of our brands globally,” said Williams-Sonoma president and CEO Laura Alber. “The Philippines is a natural market for us, with a strong, steadily growing economy and consumer interest in high-quality, stylish home products.”

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