Private Brands Growing At Williams-Sonoma

First quarter sales at Williams-Sonoma, Inc., were down as the home goods retailer reported revenue declines in two of its nameplates.

For the quarter ended April 28, net revenue was $1.66 billion, down from net revenue of $1.76 billion in the comparable quarter the previous year. Net earnings were $265.6 million, up from net earnings of $156.5 million in the first quarter of 2023. Diluted earnings per share were $4.07, compared with diluted earnings per share of $2.35 in the same quarter the previous year. Comparable brand revenue was down 4.9%.

“We are pleased to deliver strong results in the first quarter of 2024, driven by an improving top-line trend and continued strength in our profitability,” said Laura Alber, the retailer’s president and chief executive officer. “We remain committed to executing on our three key priorities in 2024 – returning to growth, elevating our world-class customer service, and driving margin.” 

By retail nameplate, quarterly comparable brand revenue at Pottery Barn was down 10.8% and down 4.1% at West Elm. Comparable brand revenue at Williams Sonoma stores was up 0.9% and up 2.8% at Pottery Barn Kids and Teen stores.

Alber said the growth at Williams-Sonoma stores was due in part to new introductions of Williams-Sonoma-branded products in categories such as bakeware, cutlery, and food.

“The favorable customer response to these items continues to reinforce the opportunity we have for the Williams-Sonoma-branded business,” she said.

Pottery Barn's revenue was negatively impacted by softness in higher-ticket furniture sales, but Alber said the company is seeing quarter-over-quarter improvement. The retailer is seeing success in its proprietary print and pattern across textiles and its easy decorating updates are driving sales.