Williams-Sonoma Q1 Revenue Down

Williams-Sonoma, Inc. is the latest retailer to be impacted by consumers dialing back on discretionary spending as the company reported a drop in revenue for the second quarter.

Company wide net revenue for the quarter ended July 30 was $1.9 billion, down from net revenue of $2.1 billion the second quarter of 2022. Net earnings were $201.5 million, down from net earnings of $267.1 million in the comparable quarter the previous year. 

Laura Alber, president and CEO of Williams-Sonoma, Inc., noted that while sales were down in the quarter, the company’s two year comparable sales were essentially flat. 

“We achieved these results against an increasingly promotional environment and softening industry metrics by focusing on regular price selling, driving improved customer service and controlling costs,” she said.

Comparable store sales for the quarter were down across the company’s four retail brands: Pottery Barn, -10.6%; West Elm, -20.8%; Williams Sonoma, -0.7%; and Pottery Barn Kids and Teen, -9.0%. 

The company is also revising its 2023 guidance to reflect lower net revenue trends and higher operating margin expectations. In fiscal 2023, the retailer now expects net revenue growth in the range of -5% to -10% with an operating margin between 15% to 16%. Over the long-term, company officials continue to expect mid-to-high single-digit annual net revenue growth with operating margin above 15%.