Home furnishing retailer Williams-Sonoma has posted flat net earnings for the fourth quarter despite the “slowest housing market” in decades continuing to impact its top line.
The company’s comparable brand revenue fell 6.8 per cent for the 13 weeks ended January 28, driven by declines across the Pottery Barn, West Elm, and Pottery Barn Kids and Teen divisions. Meanwhile, the Williams Sonoma brand saw a 1.6 per cent increase.
Total net revenues were $2.2 billion, down from $2.4 billion in the year-ago period. Net earnings were flat, at $354.4 million, versus the prior year’s $354.9 million.
According to Reuters, the company’s shares surged to a record high on Wednesday as its quarterly results exceeded previous expectations.
For the full year, comparable brand revenue dropped 9.9 per cent, with net revenues down to $7.7 billion from $8.6 billion in FY22. Net earnings were $949 million versus $1.2 billion in the prior year.
“We outperformed in 2023 despite the slowest housing market in several decades and geopolitical unrest,” said Laura Alber, president and CEO of Williams-Sonoma.
“Although this pressured our top-line trend, we stayed focused on full-price selling, supply chain efficiencies, and best-in-class customer service. We have transformed our business model and as a result, we delivered an operating margin well ahead of our pre-pandemic profitability.”
The company is expecting annual net revenue growth in the range of negative 3 per cent to positive 3 per cent in FY24. Over the long-term, it anticipates mid-to-high single-digit annual net revenue growth.
