West Elm owner delivers another strong quarter

The parent company of furniture retail brand West Elm has reported a growth in third quarter sales.

According to the latest results for Q3 ended 30 October 2022, Williams-Sonoma, Inc. reported overall sales of $2.1bn, up 8.1% on the same period last year.

Its West Elm brand saw revenues jump 4.2% to $600m from $580m, while the Williams Sonoma brand registered a decline of 1.5% to $262m. Pottery Barn sales rose 19.6% to $935m.

Operating income resulted at $340 million, increasing 2.8% on a GAAP basis and 2.0% on a non-GAAP basis, with operating margin of 15.5%.

“We are reiterating our fiscal year 2022 guidance of mid-to-high single digit annual net revenue growth and operating margins relatively in-line with our fiscal year 2021 operating margin,” the group said.

Laura Alber, President and Chief Executive Officer, added: “We are proud of another strong quarter generating an 8.1% comp, or a 25% two-year comp and an almost 50% three-year comp, with record EPS growth of 12% over last year to $3.72 per share. These results reflect the continuation of backlog order fulfillment, strong product margins and disciplined cost control.

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

“Although the macro backdrop has become more uncertain, we believe our strong positioning, growth initiatives, and culture of financial discipline will allow us to outperform in any environment.”

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