Williams-Sonoma’s e-commerce business has outpaced in-store retail to drive growth for the first time ever. The retailer reported profit growth of 9.9 percent (to $147 million or $1.57 a share) in the quarter ending Feb. 1. Revenues for the period rose 5.2 percent, compared to comparable brand revenue, which grew 5.1 percent.
For this quarter, e-commerce revenue rose 9 percent, accounting for 49.9 percent of total revenues, compared to revenue from retail stores, which only rose 1.6 percent.
Image courtesy of Williams-Sonoma.
E-commerce revenues of $2.37 billion accounted for more than half of total revenues for fiscal year ending Feb. 1. This is a 12.1 percent increase in e-commerce revenues from the last fiscal year.
“Our powerful brands and competitive advantage provided by our multi-channel platform and entrepreneurial culture delivered another year of strong returns for our shareholders,” said Laura Alber, president and CEO. “In 2014, we experienced growth in all of our brands and across our channels. Our highly profitable e-commerce business represented more than 50 percent of our revenues in 2014, a significant milestone for Williams-Sonoma.”
Although the retailer’s largest brand, Pottery Barn, reported $2.02 billion in revenue, the fastest growing brand in the past fiscal year was West Elm, which reported a 26 percent increase in revenue to $669 million, despite the constrained revenues in the fourth-quarter due to the West Coast ports slowdown.