West Elm sales down during Q3

The parent company of furniture retail brand West Elm has reported a decline in sales during the third quarter of 2023.

According to its latest trading update for the third quarter ended 29 October 2023, Williams-Sonoma, Inc. reported overall sales of $1.8bn, down 14.6% from $2.1bn on the same period last year. Net earnings fell to $237.2m from $251.7m.

Its West Elm brand saw revenues fall 22.4% to $466m from $600m, while the Williams Sonoma brand registered a decline of 1.9% to $252m. Pottery Barn sales also fell 16.6% to $778m.

Laura Alber, President and Chief Executive Officer, said: “We are proud to deliver another quarter of strong earnings, significantly exceeding expectations, despite a challenging macroeconomic backdrop for our industry. We beat profitability estimates with a record third quarter operating margin of 17.0% with earnings per share of $3.66. These results were achieved in an environment filled with on-going consumer hesitancy on high-ticket discretionary furniture spend and elevated levels of promotional activity.

“The strength of our operating model produced strong earnings again this quarter, driven by our full-price selling, supply chain efficiencies, and best-in-class customer service. Our early seasonal reads are strong and we are optimistic about the holiday season.”

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