2004 web sales rise 43% at Williams-Sonoma

Internet sales at home furnishings retailer Williams-Sonoma Inc. rose 43% last year, to $477.5 million from $332.9 million in 2003, the company reported today.

Fourth-quarter Internet sales rose 26%, to $152.6 million from $120.9 million in 2003. Full-year and Q4 gains include incremental net sales generated by the new Hold Everything furniture and accessories web site, which Williams-Sonoma launched last November.

Internet sales accounted for 15% of total sales last year, up from 12% in 2003. Q4 sales accounted for 14% of total sales last year, up from 12% in 2003.

Total 2004 revenue rose 13.9% to $3.14 billion from $2.75 billion in 2003. Q4 revenue rose 7.9% to $1.08 billion from $1 billion a year ago.

CEO Ed Mueller attributed the increases partly to the retailer’s multi-channel strategy and improvements to its supply chain. “Operationally in 2004, we deepened our commitment to multi-channel retailing by increasing our retail penetration in the Hold Everything and West Elm brands, by launching our newest catalog concept, Williams-Sonoma Home, and by expanding the multi-channel reach of the Hold Everything brand with the launch of an e-commerce web site,” he said.

“We also substantially improved our supply chain cost structure and invested in the infrastructure and systems to drive future operational efficiencies,” Mueller added. “To support the growth in our core brands and prepare for the growth in our emerging brands, we increased our distribution square footage by approximately 25%, including our first east coast distribution center, and substantially enhanced the functionality of our supply chain information systems.”