Q2 Internet sales at Williams-Sonoma rise 60% year-to-year
Second-quarter Internet sales at home furnishings retailer Williams-Sonoma Inc. rose 60.2% year-to-year to $111 million from $69.3 million, as web sales grew to 29% of total net sales from 21%, the retailer said today. Q2 total net sales increased 13.5% year-to-year to $380.7 million from $335.3 million. Comp store sales rose 5%.
Williams-Sonoma also said it plans to launch an e-commerce web site and open three prototype stores for its Hold Everything brand in the fourth quarter. In addition, it plans to introduce a catalog titled Williams-Sonoma Home in the third quarter.
Q2 Internet sales also increased as a percentage of overall direct-to-consumer sales, which also include catalog sales, to 42.4% from 33.6% a year ago, the retailer said. Total direct-to-consumer sales rose 27% to $262 million from $206.3 million a year ago.
Williams-Sonoma said Q2 gross margin expressed as a percentage of net revenue rose 50 basis points to 37.6% from 37.1% a year ago. It attributed the increase to a reduction in store occupancy expenses resulting from a greater percentage of total revenues generated by direct-to-consumer sales. The increase in gross margin occurred even though the retailer absorbed an increase in catalog advertising expenses, the company said.
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