The UK division of home furnishings retailer Williams-Sonoma, owner of the West Elm brand, has reported an uptick in sales but warned of lower future revenues.
According to its latest filed accounts for the year ended 30 January 2022, total sales rose 4% to £30.6m from £29.4m in 2021. Pre-tax profit resulted at £894,000, slightly down from £918,000 recorded in the previous year.
Stated within its report, the company said that sales increased due to rising in-store revenue as a result of post-lockdown openings. Cost of sales decreased to 69% from 70% due to higher growth in revenue compared to costs.
During the period, the business ceased operations on one of its three stores during November 2022, as well as ending its wholesale shop-in-shop partnership with its largest department store retail partner. This is expected to have a negative impact on turnover moving forward.
“The turnover in our retail business in fiscal 2022 has been recovered as the stores re-opened after the closure due to the pandemic. The directors expect the retail activity of the company to decrease in the forthcoming year as a result of the early lease termination of one UK store,” the company said.