Williams-Sonoma reports year-end results reflecting contributions from company web sites in their first full year of operation.
Heavy promotional costs dragged down earnings at home gear retailer Williams-Sonoma despite revenues that rose 19% over last year, but e-commerce sales across the company’s web sites were a bright spot, contributing $57 million for the year. In results reported this week, San Francisco-based Williams-Sonoma said earnings for the fourth quarter ended January 28 dropped to $44.5 million from $49.7 million from a year ago, on net revenues that rose 10% to $673.2 million from $565.3 million. Net revenues included shipping fees of $34.3 million. Retail sales were $412.9 million, an increase of 18.9% over fourth quarter 1999. Direct to consumer sales, including the company’s six mail order catalogs and its web sites, were $226 million for the quarter, a 19% increase over last year. E-retail sales through the company’s web sites, potterybarn.com and williams-sonoma.com, were $28 million for the quarter.
For the year, net earnings were $56.8 million versus $68.1 million on net revenues that grew 25.3% to $1.8 billion from $1.5 billion in 1999. Net revenues for the year included shipping fees of $105 million and retail sales of $1 billion, an increase of 19.6% over last year. Direct to consumer sales rose 33.1% to $685.2 million, including nearly $60 million from the company’s web sites in their first full year. The company announced plans to launch a scaled-up Pottery Barn Kids e-commerce site this year.