Williams-Sonoma Reports $88.4 Million Profit for 4th Quarter

March 21, 2010  by in UnCategorized   

By Home Furnishings Business in Financial Reports on March 22, 2010 Williams-Sonoma (NYSE: WSM) reported net income of $88.4 million for the fourth quarter ended Jan. 31, compared to $12.2 million posted in the same quarter last year.

Sales for the quarter rose 8.1 percent to $1.09 billion compared with $1.008 billion in the fourth quarter of last year. Fourth-quarter retail sales climbed 7.9 percent to $692 million, and same-store sales for the group increased 7.6 percent. Broken down by chain, same-store sales at Williams-Sonoma climbed 5.9 percent; Pottery Barn, 11.5 percent; and Pottery Barn Kids, 12.3 percent.

Direct-to-customer sales, including catalog and online orders, rose 8.4 percent to $398 million.

For the year, the company posted net earnings of $77.4 million, compared to $30 million reported in fiscal 2008. Sales for the year were $3.1 billion, compared to nearly $3.4 billion reported in the previous year.

"As I think about our successes in the past year, as well as over the past 30 years, I'm struck by the realization of what it takes to be your best," said Howard Lester, chairman and chief executive officer. "Even in good times, being your best is difficult, but in challenging times it is a strenuous test, but one that our organization was prepared to pass. During the most severe recession in recent history, we delivered the highest operating contribution in the history of our direct-to-customer segment, reduced our non GAAP SG&A expense rate to an all-time low, strategically reduced inventory while gaining market share, and generated more cash in one year than ever before. I cannot reflect on this level of achievement without being extremely proud of what has been accomplished, nor more confident in our future as this new management team officially begins to take the reins."

For the first-quarter of fiscal 2010, the company expects total net revenues to be in range of $660 million to $680 million and comparable store sales between 8 percent and 11 percent.