Williams-Sonoma's Revenue Decreases in Q1

Despite the 7.17% year-over-year net revenue decrease, the retailer is reaffirming its 2023 outlook.
Zachary Russell
Associate Editor
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Home retailer Williams-Sonoma, Inc. has shared its latest fiscal results, which saw comparable brand revenue decrease year-over-year despite strong growth in the past four years.

For the period ended April 30, comparable brand revenue declined 6.0% year-over-year, with a 2-year comp growth of 3.5% and a 4-year comp growth of 46.5%. Year-over-year, West Elm saw the largest decrease among the company’s banner stores, with net revenue falling 15.8%.

Overall, net revenue in the quarter was $1.75 billion, a 7.17% decrease from the period ended May 1, 2022. Gross profit was $675 million, a decrease from $828.5 million year-over-year. Gross margin was 38.5%, or 38.6% on a non-GAAP basis.

“Despite a challenging macro backdrop, we delivered another solid quarter of earnings. With our focus on compelling product, customer service and profitability, we achieved our financial expectations,” said Laura Alber, president and CEO of Williams-Sonoma, Inc. “We have a culture of innovation and an experienced team who knows how to increase operational efficiencies, control costs, deliver world-class customer service, and drive new growth opportunities. We are confident that we will continue to deliver on our commitment to our customers, our employees, and our shareholders.”

In fiscal 2023, the retailer said it expects net revenue growth in the range of -3% to +3% with an operating margin between 14% to 15%.

Williams-Sonoma, Inc. operates 531 retail locations across the United States, Puerto Rico, Canada, Australia and the United Kingdom.