SAN FRANCISCO — Bolstered by its Pottery Barn property, Top 100 retailer Williams-Sonoma Inc. finished a record fiscal year.
The San Francisco-based retailer released its fourth quarter and full year results on March 16, and while the quarter fell off of last year’s pace, Williams-Sonoma set a new benchmark over the course of the entire year.
“At Williams-Sonoma Inc., we are proud that, despite the declining macro environment, we delivered another record year of revenue, with a comp of 6.5% on the topline, and record earnings of $16.32 per share,” said Laura Alber, president and CEO. “With our relentless focus on customer service and profitable growth, we continue to outperform our peers, gain market share and distinguish ourselves as the world’s largest digital-first, design-led, sustainable home retailer.”
For the quarter ended Jan. 29, Williams-Sonoma posted net revenues of $2.45 billion, down 1.9% from $2.50 billion in the fourth quarter of 2021. Net earnings were $354.99 million, or $5.28 per diluted share, down 11.9% compared with $402.94 million, or $5.41 the prior year.
By segment in the quarter, Pottery Barn delivered $967 in net revenue, up 5.8% vs. Q4 2021. West Elm accounted for $534 million, down 10.7% compared with $598 million.
For the full year, Williams-Sonoma’s net revenues totaled $8.67 billion, up 5.2% from 2021’s $8.25 billion. Net earnings for the year were $1.13 billion, or $16.32 per diluted share, up 0.13% from 2021’s $1.13 billion, or $14.75 per share.
Pottery Barn again led the way, with $3.556 billion in net revenues for the year, up 14.9% from FY2021’s $3.121 billion. West Elm accounted for $2.278 billion, a 2.5% jump from the previous year’s $2.235 billion.
In fiscal 2023, the company expects annual net revenue growth in the range of -3% to +3% with an operating margin between 14% to 15%. In the long-term, Williams-Sonoma expects mid-to-high single-digit annual net revenue growth with operating margin above 15%.
“As we look to the long-term, we are confident in our continued ability to take market share and to do so, profitably,” Alber said. “With our culture of innovation and talent, our values and the strength of our team, we’re moving ahead with our vision of furnishing our customers everywhere. As we do, we are confident that we will continue to deliver for all our customers, employees and shareholders.”