Williams-Sonoma (NYSE:WSM) shares jumped to new highs Thursday after the home goods retailer posted better-than-expected results for its fourth quarter.
The company’s e-commerce business played a key role in growing sales to make up for lost business in physical stores. But CEO Laura Alber is anticipating a strong recovery in brick-and-mortar sales as the U.S. economy emerges from the pandemic.
“The store traffic’s coming back,” Alber told reporters. “I think people don’t realize the upside we have in retail."
Williams-Sonoma, known for selling products for the kitchen, generated $2.3 billion in revenues in its most recent quarter that ended Jan. 31. It was the third-straight quarter of year-over-year growth, following a dip in sales early last year when sweeping COVID-19 lockdowns took effect.
The San Francisco-based retailer also reported full-year results from its 2021 fiscal year. Despite pandemic-era business disruptions, the company had its best year of growth in almost two decades.
Online sales grew 45% during the fiscal year, compared to a 24% drop in in-person sales.
Still, Alber said the company won’t give up on its brick-and-mortar strategy.
Williams-Sonoma earnings jumped 85% to $3.95 a share. Revenue rose 24.5% to $2.29 billion, the third straight quarter of accelerating top-line growth. Same-store sales growth accelerated, to 25.7%. Comps jumped 26.2% at Williams Sonoma namesake stores. Same-store sales leapt 25.7% at Pottery Barn as well as Pottery Barn Kids and Teen. They surged 25.2% at West Elm.
WSM shares climbed $4.81, or 3%, to $166.38.
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