Williams-Sonoma Profits Flat in 4Q
March 28, 2005,
San Francisco — Held in check by a change in accounting, thinning margins, higher costs and a slide in same-store sales at its Pottery Barn and Hold Everything units, fourth quarter profits at Williams-Sonoma were virtually unchanged from year-before levels, inching up just 0.5 percent, to $102.6 million from $102.1 million last year.
Williams-Sonoma sales climbed 7.9 percent during the Christmas quarter, to $1.1 billion from $1 billion last year. Same-store sales edged ahead 1.5 percent, well behind the faster pace of growth a year ago, when same-store sales climbed 4.1 percent.
Acting as a drag on the total, same-store sales at the Pottery Barn division slipped 2.2 percent, following a 4.3 percent increase during the year-before holiday period.
The damage was even greater at the Hold Everything unit, where comps skidded 8.4 percent, worsening after a 2 percent drop during the same period a year ago.
Pottery Barn Kids, on the other hand, made a strong showing with a gain of 8.4 percent, recovering from a slight 1.1 percent decrease last year. But the biggest sales gainer was the outlets, where comps raced ahead 19.9 percent, building on last year's 7.9 percent increase.
Putting earnings under pressure, margins eroded 90 basis points, or nine-tenths of a percentage point, to 43.2 percent from 44.1 percent.
|QTR. 1/30 (x000)||2004||2003||% CHANGE|
|a. Fourth quarter total sales, including retail sales of $680.3 million, up 8.8 percent from $625.1 million during the same period last year; retail shipping fees of $2.6 million, up 9.9 percent from $2.3 million; direct-to-consumer sales of $344.9 million, up 7.1 percent from $322.2 million; and direct-to-consumer shipping fees of $55.9 million, up 2.2 percent from $54.7 million.
b. 12-month total sales, including $1.8 billion in retail sales, up 11.6 percent from $1.6 billion during 2003; $8.5 million in retail shipping fees, up 12.4 percent from $7.5 million; direct-to-consumer sales of $1.1 billion, up 17.5 percent from $966.4 million; and direct-to-consumer shipping fees of $190.9 million, up 15.3 percent from $165.6 million.
|Oper. Income (EBIT)||166,626||165,764||0.5|
|Per share (diluted)||0.86||0.85||1.2|
|Average gross margin||43.2%||44.1%||—|
|Oper. Income (EBIT)||292,555||254,787||14.8|
|Per share (diluted)||1.51||1.32||14.4|
|Average gross margin||40.0%||40.3%||—|
Fourth Quarter Segment Results
|Pottery Barn Kids||8.4||-1.1|
Related Content By Author
1200 Suppliers are Ready for You at Intertextile Shanghai
Home & Textiles Today eDaily
Most Viewed Articles
See the August 2017 issue of Home & Textiles Today. In this issue, we look at the Top 50 Retailing Giants Report, plus Manufacturing: Made in the USA gaining ground; International: Portugal ramping up exports; New products: NY Now home textiles introductions; Outlook: Commentary from H&TT's editors; and Planning: Trade show calendar.