Williams-Sonoma Reports Decline in Net Revenues

By Bobby Samwell • Saturday, November 23 15:13 • Permanent Link

Williams-Sonoma, Inc. has recently released its 10-Q report, detailing its financial performance for the third quarter of fiscal 2024. The company operates as an omni-channel specialty retailer of various home products, including cooking, dining, and entertaining items, furniture, home furnishings, and decorative accessories under several brands such as Williams Sonoma, Pottery Barn, West Elm, and others.

In the third quarter of fiscal 2024, Williams-Sonoma reported a decrease in net revenues by $53.0 million or 2.9%, with a company comparable brand revenue decline of 2.9%. The decline was driven by customer hesitancy towards furniture purchases, partially offset by strength in emerging brands and children's home furnishings business.

The company's net revenues for the first thirty-nine weeks of fiscal 2024 decreased by $222.4 million, or 4.1%, with a company comparable brand revenue decline of 3.7%, again driven by customer hesitancy towards furniture purchases, partially offset by strength in emerging brands and children's home furnishings.

In the third quarter of fiscal 2024, Williams-Sonoma reported diluted earnings per share of $1.96, compared to $1.83 in the third quarter of fiscal 2023. As of October 27, 2024, the company had $827 million in cash and cash equivalents and generated operating cash flow of $726.7 million in the first thirty-nine weeks of fiscal 2024.

Subsequent to the filing of the Form 10-K, the company made an out-of-period adjustment of $49.0 million in the first quarter of fiscal 2024 to reduce cost of goods sold and accounts payable, correcting the cumulative error on the Consolidated Balance Sheet as of January 28, 2024.

Looking ahead, the company is focused on returning to growth, elevating customer service, and driving earnings. However, the uncertain macroeconomic environment with the slow housing market, elevated interest rates, layoffs, inflationary pressure, political uncertainty, and global geopolitical tension may continue to impact the company's results.

The market has reacted to these announcements by moving the company's shares -0.3% to a price of $171.98. For more information, read the company's full 10-Q submission here.

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