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11/18/2022

Pottery Barn Gives Williams Sonoma Q3 Revenue Boost

Despite the quarterly gains, officials with the home speciality retailer are keeping close watch on consumer concerns over inflation.
Greg Sleter
Associate Publisher/Executive Editor
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Williams Sonoma

Third quarter sales at Williams Sonoma Inc. were up as strong sales at its Pottery Barn division offset declines in revenue at Williams Sonoma and Pottery Barn Kids and Teen stores. 

For the 13-week period ending Oct. 30, company-wide sales were $2.19 billion, up from sales of $2.05 billion in the third quarter of 2021. Net earnings in the quarter were $251.7 million up from net earnings of $249.5 million in the comparable quarter the previous year. Diluted earnings per share were $3.72 compared to $3.29 the prior year quarter.

By division, net revenue at Pottery Barn was up 19.6%, up 4.2% at West Elm, down 1.5% at Williams Sonoma and down 4.8% at Pottery Barn Kids and Teen.

“We delivered another quarter of record revenues and earnings in a challenging environment. Our topline results illustrate our ability to gain market share, “said Jeff Howie, the company’s chief financial officer. “Our bottom-line results demonstrate the power of our operating model to sustain merchandise margin and control SG&A expenses.”

During the company’s investor conference call to review quarterly results, Laura Alber, president and CEO of Williams Sonoma, said the retailer remains aware that economic uncertainty is on the minds of consumers. 

“During the third quarter, we experienced deceleration and choppiness in our demand, and it is hard to know where the economy is going or how long the uncertainty will last,” she said. “Nonetheless, we are controlling what we can control and looking at opportunities to reduce costs without an impact on the customer experience.”

Alber said the retailer is committed to not running sitewide promotions, but will continue to mark down and clear overstocks as needed. Additionally, the retailer is working with vendors to reduce costs and pass that reduction to its customers.