Williams-Sonoma Struggles As Fiscal 2015 Closes

For the fourth quarter ended January 31, Williams-Sonoma posted net earnings of $141.1 million, or $1.55 per diluted share, compared with $147 million, or $1.57 million per diluted share, in the year-prior quarter.

Comparable brand revenue was down 2% at Pottery Barn stores, up 0.9% at Williams-Sonoma stores, up 12.8% at West Elm stores, up 0.1% at Pottery Barn Kids stores, and down 12.2% at PBteen stores, for a company total of up 0.8%, the company reported.

When one-time events are excluded, diluted earnings per share in last year's fourth quarter were $1.52, Williams-Sonoma maintained. For the most recently completed quarter, the company fell three cents short of an analyst average estimate published by MarketBeat.

Net revenues were $1.59 billion versus $1.54 billion in the year-earlier quarter, with 49.9% coming from e-commerce and 50.1% from the brick-and mortar-based business, Williams-Sonoma noted.

For the full fiscal year, net earnings were $310.1 million, or $3.37 per diluted share, versus $308.9 million, or $3.24 per diluted share, in the year previous.

Net revenues were $4.98 billion versus $4.7 billion in the prior year. E-commerce represented 50.7% of revenues, Williams-Sonoma said.

“In 2015, we delivered top and bottom line performance within our guidance ranges despite a challenging end to the year," said Laura Alber, Williams-Sonoma president and CEO. "We are reporting record revenue and earnings per share for the year as a result of the strength of our portfolio of outstanding brands, our balanced, multi-channel model, and solid execution. Disciplined management allowed us to meet our commitments as we adjusted to an evolving consumer and competitive landscape. Our brands are highly aspirational and relatable at the same time, and create a platform for growth."

She said that as Williams-Sonoma continues through 2016, "we believe we have the opportunity to strengthen our competitive positioning including our product, service and value proposition for our customers, which will allow us to profitably grow market share. We are making important changes to the way we do business. We are re-asserting our product leadership, revolutionizing our approach to inventory, transforming our marketing and changing our approach to real estate and the store experience.”