The retailer is heading into the holidays on the heels of a strong third quarter, fuelled by record sales at its namesake brand.
The home goods and furnishings company reported net income of $201.8M, or $2.54 a share, for the quarter ended 1 Nov, compared with net income of $74.7M, or $0.94 a share, in the year-ago quarter. Analysts had expected earnings of $1.56.
Net revenue surged 22.4 per cent to $1.77bn, topping estimates of $1.59bn. Net comparable brand growth rose 24.4 per cent. The retailer reported year-over-year acceleration across all brands, including Williams-Sonoma at a record 30.4 per cent, Pottery Barn at 24.1 per cent, Pottery Barn Kids and Teen at 23.8 per cent and West Elm at 21.8 per cent. E-commerce net comparable brand revenue growth accelerated to 49.3 per cent, with online penetration holding at almost 70 per cent of total net revenues.
“In the third quarter, sales again outperformed expectations with demand comp up nearly 31 per cent compared to a net comp of 24 per cent, driven by strength across all brands,” said Laura Alber, President and CEO. “E-commerce accelerated sequentially to a record net comp of over 49 per cent and we were pleased to see our store performance improve throughout the quarter to a net comp of negative 11 per cent.”