Williams-Sonoma, Inc. (NYSE: WSM) stock jumped about 10% after the omni-channel specialty retailer announced operating results for the third fiscal quarter ended November 1, 2020 (“Q3 20”) versus the third fiscal quarter ended November 3, 2019 (“Q3 19”).
The Company reported net revenue growth of 22.4% to $1.765 billion, driven by acceleration across all brands. According to Williams-Sonoma, demand comparable brand revenue growth accelerated to 31%, which includes orders placed but not yet filled or charged to the customer in the quarter. And E-commerce net comparable brand revenue growth accelerated to 49.3% with e-commerce penetration holding at almost 70% of total net revenues.
“In the third quarter, sales again outperformed expectations with demand comp up nearly 31% compared to a net comp of 24%, driven by strength across all brands. E-commerce accelerated sequentially to a record net comp of over 49% and we were pleased to see our store performance improve throughout the quarter to a net comp of negative 11%. Even more encouraging is the retail demand comp at negative 4%. And, we delivered these sales more profitably, with operating margins reaching record levels at 15.7%,” said Laura Alber, President and Chief Executive Officer.
“Our company’s mission is to enhance the quality of people’s lives at home. We have built our business with this mission at the forefront, investing in areas that matter most to our customers. These include:
- High quality, well-designed, sustainable products at a great value because of our scale and vertical supply chain;
- Inspiring marketing, and;
- The convenience of our high-touch digital-first omnichannel experience.
And this, combined with our loved brands that serve a wide range of customers across aesthetics and price points, is our distinctive positioning and our competitive advantage,” Alber continued.
Alber concluded, “Our vision is to own the home. And, with our distinctive positioning we will only become more relevant. We have the strategies, the team and the world-class platform to maximize the industry trends that favor our business and successfully execute on our growth opportunities. We are confident that we will continue to drive accelerating sales growth with increasing profitability and evolve into an even more attractive business for our stakeholders during and post pandemic.”