Retailers shift their ad spending from TV, radio and print ads to digital ads.
Catalog and web sales grew 11.9% to $177.1 million and contributed 36% of total revenues.
Williams-Sonoma, Inc. this week reported that for its second quarter ended August 4, sales in its direct channel, including its catalog and web operations, increased 11.9% to $177.1 million over the same quarter last year, accounting for 36% of revenues. Total net revenues, including shipping fees, increased 15.5% to $495.6 million. Total net retail sales increased 16.9% to $285.8 million and total net earnings increased to $14.4 million from $1.4 million last year. Results covered Williams-Sonoma, Pottery Barn, Pottery Barn Kids, Hold Everything and West Elm and Chambers brands, including four e-commerce sites, 445 stores, and seven catalogs.
The Internet helped drive performance in its three major brands for the quarter. Pottery Barn sales were up 13% across all channels over last year’s second quarter, aided by strong cross-channel marketing using e-mail and Pottery Barn’s online gift registry. Company officials cited strong e–commerce sales as a contributor to a 60% year over year net sales increase at Pottery Barn Kids across all channels in the second quarter. The Williams-Sonoma brand saw an 8.3% increase in sales for the quarter, driven in part by a 13% gain in e-commerce sales and a 17% increase in sales from the brand’s online bridal registry.
Company officials said the Williams–Sonoma brand’s gains online reflect the results of the brand’s ongoing e-commerce initiatives. The brand has combined its formerly separate Williams-Sonoma and Williams-Sonoma bridal registry sites into a single e-commerce site and increased its functionality. For example, consumers can now purchase and ship items to multiple different addresses in a single online transaction, and brides can purchase through the gift registry online items they did not receive as gifts, an option formerly available only in stores.