Williams-Sonoma Boosts Net 9.1 Percent in Q4, Hayes Named President of Williams-Sonoma Brand
SAN FRANCISCO-Fourth-quarter net income for Williams-Sonoma rose 9.1 percent to $133.7 million, bringing the retail company's bottom-line total for the year to $256.7 million, up 8.4 percent over the prior fiscal year.
Net revenues for the quarter, which ended on Feb. 3, were up 19.3 percent to $633.5 million. Driving the company's overall revenue increase was a 19.3 percent gain in revenues from Williams-Sonoma's direct-to-consumer channel; retail net revenues, meanwhile, gained 4.8 percent. For the whole fiscal year, net revenues increased 8.7 percent to $4 billion, with direct-to-customer net revenues climbing 14.5 percent and retail net revenues rising 4.1 percent.
Fourth-quarter gross margin for the company as a whole finished dead even with last year's fourth quarter at 41.3 percent. Selling, general and administrative expenses increased 13.6 percent in dollars and 60 basis points as a percentage of sales, to 26.3 percent.
Laura Alber, president and CEO, said Williams-Sonoma exceeded its expectations in 2012 and expects continued progress this year. "As we look forward to 2013 and beyond," Alber said, "we continue to see opportunities to grow our existing brands, build new ones and expand to new geographies, including Australia, where we will be opening our first company-operated stores outside North America this May."
In other company news, Williams-Sonoma said Janet Hayes, president of Pottery Barn Kids and PBteen, has become president of the Williams-Sonoma brand effective today. Hayes has succeeded Richard Harvey, who will leave on May 3 after 30 years with the company.
Hayes has been with Williams-Sonoma since 2007, serving in several roles with Pottery Barn Kids and PBteen. Sandra Stangl, president of Pottery Barn, has expanded her role to include Pottery Barn Kids and PBteen, also effective today.