04 June 2009

Williams-Sonoma 1Q financial results

Though revenues decreased, Williams-Sonoma said its first-quarter results (ended May 3, 2009) were better than expected. The company operates Williams-Sonoma, Pottery Barn and Pottery Barn Kids.
From the press release:
Howard Lester, Chairman and Chief Executive Officer, commented, “While the home furnishings sector continued to be under significant pressure in the first quarter, we focused on the aspects of the business we could control and delivered substantially better-than-expected earnings results.
We saw our revenues stabilize within our range of guidance, and we were able to enhance profitability by reducing our advertising expense as a percentage of revenues
and optimizing our promotional activity. We also successfully lowered our merchandise inventories, reduced our capital spending and once again improved our year-over-year cash position.”
Mr. Lester continued, “. . . despite our better-than-expected performance in the first quarter, we are reiterating our financial guidance for the remaining quarters of the year, as we continue to focus on our five key initiatives:
(1) capturing market share through innovative merchandising and a greater emphasis on opening price points;
(2) delivering superior customer service;
(3) continuing our catalog circulation optimization strategy;
(4) driving efficiencies in our worldwide supply chain; and
(5) maximizing profitability and cash flow.”

Read the full release and see financial tables here.

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