CEO Sharon Price John says Build-A-Bear’s old e-commerce system is a big reason for disappointing online sales in December.
Net revenue from the web increased 17.4%, while store sales grew 4.1%.
With an extra week in the 14-week fiscal fourth quarter at housewares and home furnishings retailer Williams-Sonoma Inc, Q4 e-commerce net revenue grew by $70 million and increased 24.0% year over year, the retailer says. For the full fiscal year ended Feb. 3, 2013, e-commerce net revenue rose 17.4%, and represented 76.4% of the retail chain’s growth.
On a comparable 52-week basis, e-commerce net revenue increased year over year by 15.5% in Q4 and by 14.7% for the full fiscal year, the retailer says.
For the full fiscal year, Williams-Sonoma also reported:
● E-commerce net revenue of $1.656 billion was up 17.4% from $1.410 billion a year earlier. On a comparable-weeks basis, e-commerce revenue increased 14.7% to $1.617 billion.
● E-commerce accounted for 41.0% of total revenue, compared with 37.9% a year earlier.
● Total net revenue of $4.043 billion, up 8.7% year over year from $3.721 billion. On a comparable 52-week basis, total net revenue rose 6.6% to $3.967 billion.
● Direct-to-consumer net revenue, which combines paper catalogs and e-commerce sales, grew 14.5% year over year to $1.869 billion from $1.633 billion. On a comparable-weeks basis, direct-to-consumer net revenue increased 11.8% to $1.826 billion.
● Retail store net revenue of $2.173 billion rose 4.1% from $2.088 a year earlier. On a comparable-weeks basis, store net revenue rose 2.5% to $2.140 billion.
● Net earnings increased 8.4% to $256.73 million from $236.93 million.
Laura Alber, president and CEO, attributes much of the growth to the retailer’s efforts in selling and marketing across online and store retail channels. “Our multiple marketing and sales channels provide us competitive advantages in meeting our customers’ changing needs as shopping patterns continue to evolve as to when, where, and in what format purchase decisions are made,” she says.
For the fiscal fourth quarter, the retailer reported:
● E-commerce net revenue rose 23.9% year over year to $576 million from $465 million. On a comparable-weeks basis, e-commerce net revenue increased 15.5% to $537 million.
● E-commerce accounted for 41.0% of total revenue, up from 36.7% a year earlier.
● Total revenue of $1.406 billion was up 10.9% from $1.268 billion a year earlier. E-commerce accounted for 80.4% of the retailer’s fourth quarter growth.
● Direct-to-consumer net revenue, which combines paper catalogs and e-commerce sales, rose 19.4% to $634 million from $531 million a year earlier. On a comparable-weeks basis, it rose 10.9% to $589 million.
● Retail store net revenue rose 4.9% to $773 million from $737 million a year earlier. On a comparable-weeks basis, it rose 3.0% to $759 million.
● Net earnings rose 9.1% to $133.73 million from $122.59 million.
Williams-Sonoma, No. 24 in the Internet Retailer Top 500, operates seven e-commerce sites, eight paper catalogs and 581 stores under the brands Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm and PBteen. The retailer plans to open its first company-operated stores outside of the United States this May in Australia, according to Alber.