Sonoma boosts profits in 3Q
Wes Kennedy -- Home Accents Today, November 26, 2001
In spite of the tough retail climate, Williams Sonoma Inc. delivered a positive third quarter in terms of financial results.
The retailer boosted its net profit for the quarter by nearly 65 percent compared to last year, reaching almost $3.9 million. Its operating income rose to $8 million, more than 9 percent better than the same figure for last year's third quarter.
Revenues increased by nearly 9 percent in the quarter, to $462.1 million. Within that figure, the retailer posted retail sales of $257.6 million, up more than 15 percent over last year's third quarter. The company managed that impressive growth despite posting a same-store sales decline of 1.1 percent for the quarter.
Dale Hilpert, ceo, credited a rebound in Pottery Barn's sales for the positive overall sales picture. Pottery Barn reported a same-store sales increase of 2.6 percent in October, its best monthly total of the year, according to Hilpert.
Williams-Sonoma was also successful in monitoring expenses. Its SG&A expenses as a percentage of revenues decreased by 130 basis points, to 34.2 percent. This offset a 140-basis-point decline in the company's average gross margin, which finished the quarter at 35.9 percent.
|QTR 10/28 (X000)||2001||2000||% CHG|
|Oper. income (EBIT)||7,998||7,324||9.2|
|Per share (diluted)||0.07||0.04||75.0|
|Average gross margin||35.9%||37.3%||—|
|Oper. income (EBIT)||14,143||27,084||-47.8|
|Per share (diluted)||0.10||0.21||-52.4|
|Average gross margin||35.1%||36.6%||—|