Williams-Sonoma: 'Digital First' Drives Growth
A business model that’s digital-first, design-led and sustainable is paying off for Williams-Sonoma, the home retailer said Wednesday (Aug. 24) while reporting record second quarter results.
During the quarter that ended July 31, the company saw comparable brand revenue growth of 11.3% year over year and 41.1% on a two-year basis, according to a press release.
“These impressive results reflect the strength of our multi-brand portfolio, the success of our growth initiatives and the ongoing execution of the team,” Williams-Sonoma President and CEO Laura Alber said in the release. “We continue to demonstrate our ability to perform by offering high-quality, differentiated and sustainable products that our customers know and love.”
The company, whose brands include Pottery Barn, West Elm, Pottery Barn Kids and Teen and Williams Sonoma, said in the press release that its key differentiators are its in-house design, digital-first channel strategy and values.
In its most recent investor presentation, which was released in April, Williams-Sonoma highlighted the fact that its strategy is “digital-first (not digital-only),” adding that approximately 80% of home goods sales still come from brick-and-mortar stores.
Offering its eCommerce platform while also having stores provides a competitive advantage as the stores offer an inspirational customer experience and omnichannel shopping and fulfillment capabilities, the company says in the presentation.
At the same time, the home furnishings industry is shifting rapidly online. The company notes in its presentation, “the world has experienced macro shifts in how we live and work.”
Looking ahead, Williams-Sonoma expects this growth to continue, as it reiterated its fiscal year 2022 and long-term financial outlook of mid-to-high single-digital annual revenue growth.
“I am very proud of this performance especially given the macroeconomic backdrop and the strong compares we were up against, all while delivering an impressive 41.1% comp on a two-year basis,” Alber said in the release. “And it is this continued outperformance that gives us confidence to reiterate our 2022 guidance and longer-term outlook today.”