In its second-largest acquisition, Amazon buys the company for $970 million.
Online sales increased 16.7%, while total sales grew 8.9%.
Online sales were a highlight of third quarter financial results for housewares and home furnishings retailer Williams-Sonoma Inc. In fact, the web accounted for 73.6% of the retailer’s revenue growth in the quarter.
For the third quarter ended Oct. 28, Williams-Sonoma, No. 24 in the Internet Retailer Top 500 Guide, reported:
- Web sales of $396 million, a 16.7% increase from $339 million in the same quarter of 2011.
- Total sales were $944.6 million, up 8.9% from $867.2 million.
- Total direct-to-consumer sales, including web and catalog sales, of $447 million, about a 14.6% increase from $390 million.
- Total retail sales were $497 million, up about 4.0% from $478 million in the third quarter of 2011.
- Comparable-store sales increased 8.5 %.
- Net income was $48.9 million, a 12.7% increase from $43.4 million in the prior year quarter.
Online sales accounted for 41.9% of total sales compared with 39.1% in the third quarter of 2011.
“During the third quarter we delivered stronger-than-expected revenues, operating margin and diluted earnings per share,” says Laura Alber, president and CEO. “Importantly, we drove these results while simultaneously investing in our strategic growth initiatives.”
Williams-Sonoma recently launched MarkandGraham.com, a new e-commerce site featuring personalized gifts and accessories. Williams-Sonoma also adopted a new targeted marketing model that incorporates the behavior of individual consumers and not just segments of them.
For the first nine months of 2012, Williams-Sonoma reported:
- Web sales were $1.08 billion, up 8.5% from $995 million in the same period of 2011.
- Total sales were $2.64 billion, up by 7.8% from $2.45 billion.
- Total direct-to-consumer sales, including web and catalog sales, were $1.24 billion, up 12.7% from $1.10 billion.
- Total retail sales were $1.40 billion, up by 3.7% from $1.35 billion.
- Net income was $123.0 million, up by 7.6% from $114.3 million in the prior year period.
Online sales accounted for 40.9% of total sales compared with 40.6% in the first three quarters of 2011.