Quarterly Net Revenue Down At Williams-Sonoma

Fourth quarter net sales at Williams-Sonoma were down as the home specialty retailer reported decreases in three of its four divisions. 

For the quarter ended January 28, net revenue was $2.3 billion, down from net revenue of $2.5 billion in the comparable quarter the previous year. Net earnings were $354.4 million, flat year-over-year. Diluted earnings per share were $5.44, up from diluted earnings per share of $5.28 in the same quarter the previous year.

Gross margin in the quarter was 46.0% an increase of 480 basis points over the previous year with selling margin up 560 basis points due to higher merchandise margins and lower costs from supply chain efficiencies.

Comparable brand revenue was down -6.8%, which beat the retailer's forecasted drop in comparable revenue of between -10% and -12%.

“We outperformed in 2023 despite the slowest housing market in several decades and geopolitical unrest,” said Laura Alber, president and CEO of Williams-Sonoma, Inc. “Although this pressured our top-line trend, we stayed focused on full-price selling, supply chain efficiencies, and best-in-class customer service. We have transformed our business model and as a result, we delivered an operating margin well ahead of our pre-pandemic profitability.”

By division, comparable brand revenue was down -9.6% at Pottery Barn, down -15.3% at West Elm, up 1.6% at Williams Sonoma, and down -2.5% at Pottery Barn Kids and Teens. 

Company wide full-year net revenue was $7.8 billion, a decrease from net revenue of $8.7 billion in the prior fiscal year. Net earnings were $949.8 million, down from net earnings of $1.1 billion in the prior fiscal year. Diluted earnings per share was $14.55 compared with diluted earnings per share of $16.32 in the previous fiscal year.

Full year comparable brand revenue was down -9.7% at Pottery Barn, down -18.8% at West Elm, down -0.7% at Williams Sonoma, and down -5.5% at Pottery Barn Kids and Teen.