Williams-Sonoma surges, led by online and West Elm

Williams-Sonoma easily beat Street estimates in its first quarter amid a healthy increase in e-commerce sales and another strong performance by its West Elm brand.

The retailer reported net income of $45.2 million, or 54 cents a share, for the quarter ended April 30, compared with $39.6 million, or 45 cents a share, in the year-ago period. Adjusted earnings were 67 cents a share, higher than the 58 cents a share analysts had expected.

Revenue rose to $1.2 billion from $1.11 billion in the year-ago period. Analysts had estimated revenue of $1.16 billion. Online net revenues increased 11.3%, while retail net revenues increased 4.9%.
Total same-store sales rose 5.5%, led by West Elm with a 9.9% increase. Sales rose 5.6% at Williams-Sonoma and 2.7% at Pottery Barn.

“Following a robust fourth quarter, we saw continued strength in the first quarter,” said CEO Laura Alber. “ We achieved strong results against our guidance range across all metrics, with our e-commerce revenues outpacing to almost 54% of our total revenues. Our customer growth continued to trend positively for both new and existing customers, demonstrating the success of our balanced customer acquisition strategy.”

For the year, Williams-Sonoma raised its outlook to estimated earnings of $4.15 to $4.25 a share on revenue of $5.5 billion to $5.66 billion