E-Commerce Drives Q1 Growth At Williams-Sonoma

First quarter sales at Williams-Sonoma were up 6.5% as net revenues from e-commerce sales once again outpaced sales at its brick-and-mortar stores.

Total sales for the quarter ended May 1 were $1.098 billion, up from sales of $1.030 billion in the comparable quarter the previous year. E-commerce revenue accounted for 52.5% of total company revenue, up from 51.7% in the first quarter of 2015.

First quarter diluted earnings per share were $0.44 versus $0.48 in the first quarter of 2015. Excluding unusual business events due to severance-related reorganization charges of approximately $0.09 per diluted share, non-GAAP EPS was $0.53.

“In the first quarter we saw accelerated growth in West Elm and Williams-Sonoma, as well as improvement across the Pottery Barn brands,” said Laura Alber, Williams-Sonoma president and CEO. “We also saw positive results from our inventory and supply chain initiatives. We believe our strong brands and profitable multi-channel strategy create a sustainable competitive advantage.”

Comparable brand revenue growth across the company in the first quarter increased 4.5% on top of 4.6% in the comparable quarter the previous year.

Comparable store sales were also positive across the company’s five divisions: Pottery Barn, 0.2%; Williams-Sonoma, 3.5%; West Elm, 19%; Pottery Barn Kids, 1.7%; and PBteen, 1.9%.

For the second quarter, the company is forecasting total revenue of between $1.145 billion and $1.175 billion, with comparable brand revenue growth expected to grow between 1% and 4%.

Williams-Sonoma operates 624 stores across its retail portfolio.