>>
Home / Knowledge / News / Textiles / Williams-Sonoma reiterates financial guidance

Williams-Sonoma reiterates financial guidance

04
Jun '09
Williams-Sonoma, Inc. announced operating results for the first quarter of fiscal year 2009 ended May 3, 2009 (“Q1 09”).

Q1 09 RESULTS
Net revenues in Q1 09 decreased 21.8% to $612 million versus $782 million in the first quarter of fiscal year 2008 ended May 4, 2008 (“Q1 08”). Comparable store sales in Q1 09 decreased 21.0% from Q1 08.

Howard Lester, Chairman and Chief Executive Officer, commented, “While the home furnishings sector continued to be under significant pressure in the first quarter, we focused on the aspects of the business we could control and delivered substantially better-than-expected earnings results. We saw our revenues stabilize within our range of guidance, and we were able to enhance profitability by reducing our advertising expense as a percentage of revenues and optimizing our promotional activity. We also successfully lowered our merchandise inventories, reduced our capital spending and once again improved our year-over-year cash position.”

Mr. Lester continued, “Looking forward to the second quarter and the balance of the year, we are continuing to gain confidence in our revenue forecasts as they trend in line with the guidance we provided at the beginning of the year.We are, however, cognizant of the ongoing volatility in the economy and the potential for promotional pressure as the industry reduces inventory levels.

As such, despite our better-than-expected performance in the first quarter, we are reiterating our financial guidance for the remaining quarters of the year, as we continue to focus on our five key initiatives: (1) capturing market share through innovative merchandising and a greater emphasis on opening price points; (2) delivering superior customer service; (3) continuing our catalog circulation optimization strategy; (4) driving efficiencies in our worldwide supply chain; and (5) maximizing profitability and cash flow.”

Retail net revenues in Q1 09 decreased 17.6% to $358 million versus $434 million in Q1 08. This decrease was driven by a 21.0% reduction in comparable store sales, partially offset by a 7.4% year-over-year increase in retail leased square footage (“LSF”), including 27 net new stores. All brands had declining net revenues during the quarter, led by Pottery Barn, Williams-Sonoma, and Pottery Barn Kids.

Direct-to-customer net revenues in Q1 09 decreased 27.0% to $254 million versus $348 million in Q1 08. All brands had declining net revenues during the quarter, led primarily by Pottery Barn and Pottery Barn Kids. Internet revenues in Q1 09 decreased 22.8% to $194 million versus $252 million in Q1 08.

Gross margin expressed as a percentage of net revenues in Q1 09 was 30.1% versus 35.3% of net revenues in Q1 08. Excluding the 20 basis point impact of accelerated depreciation related to an early lease termination in Q1 08, non-GAAP gross margin expressed as a percentage of net revenues was35.5%. This 540 basis point decrease was primarily driven by the deleverage of fixed occupancy expenses resulting from declining sales and an increase in cost of merchandise (including the impact of increased markdowns).


Must ReadView All

Pic: Shutterstock

Textiles | On 25th Jan 2022

New US legislation to fix import loophole, boost oversight unveiled

Earl Blumenauer, chairman of the US House of Representatives ways and ...

Pic: Shutterstock

Apparel/Garments | On 25th Jan 2022

China’s garment industry earned $209 bn in revenue in Jan-Nov 2021

About 12,659 garment companies of China earned a combined operating...

Pic: Shutterstock.com

Textiles | On 24th Jan 2022

World economy to lose $12.5 trn in output by 2024 due to COVID: IMF

The world economy will lose $12.5 trillion in output by 2024 due to...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Hopeful that issue will be resolved by first half of 2022

Textile Industry, Head honchos

Textile Industry
Head honchos

Multi-functional garments will be next big thing

Water stewardship, Stakeholders

Water stewardship
Stakeholders

Water use efficiency remains relatively unexplored

Aashumi Mahajan,

Aashumi Mahajan

The Luxe Maison is a premiere haute couture e-boutique established after...

Seema Mishra,

Seema Mishra

Set up in January 2020 by <b>Seema Mishra</b>, the Kasrawad Art Cluster...

Daniele Uboldi,

Daniele Uboldi

EptaInks is the screen-printing division of Eptanova, a company that...

Robert Brookins, Alexium International

Robert Brookins
Alexium International

Alexium International is a specialty chemical development company...

Karan Bose, Hula Global

Karan Bose
Hula Global

Hula Global, a leading isolation gown manufacturer in India, has been...

 Natacha Defeche, Edana

Natacha Defeche
Edana

Since 1971, EDANA, the International association serving the nonwovens and ...

Dahlia Razzrook, Label - Dahlia Razzook

Dahlia Razzrook
Label - Dahlia Razzook

London based designer, <b>Dahlia Razook</b> known for her luxury...

Carmen Emanuela Popa, Label - Carmen Emanuela Popa

Carmen Emanuela Popa
Label - Carmen Emanuela Popa

<b>Carmen Emanuela Popa,</b> a Romanian fashion designer, is known for her ...

Raghavendra Rathore, Label Raghavendra Rathore Jodhpur

Raghavendra Rathore
Label Raghavendra Rathore Jodhpur

Being one of the first designers to use the "Brand India" positioning for...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments

ESTEEMED CLIENTS

Deckers Outdoor (Guangzhou) Consultant Co., LTD.
Huntsman (Singapore) Pte Ltd
Chico’ FAS
IDH – The Sustainable Trade Initiative
Amazon China
LC Waikiki
The LYCRA Company Singapore  Pte. Ltd
KAS Direct Sourcing
Page Industries Limited (Bangalore)
BIANCA
Brandix Lanka Limited
Esprit Europe Services GmbH
G-Star Raw C.V.
Desigual - ABASIC, S.A.
Eastman Chemical Company
Gokaldas Exports Limited
Grasim Industries Limited
Seasalt Limited
Lisa S.P.A.
Tory Burch Hong Kong Ltd
Hirdaramani International Export Private Limited
SHAHI Exports Pvt Ltd
OVS Hong Kong Sourcing Ltd.
C;&A Sourcing International Ltd
Decathlon
KIABI
Lululemon Athletica Inc
Calvin Klein
Sateri (Jiujiang) Fiber Co.,Ltd
Cat Tuong Real Estate Group Joint Stock Company
Gatsby Africa
Tommy Hilfiger
Reiter India Private Limited
Under Armour Global Sourcing Ltd
Sainsbury's Argos Asia Limited
BIMBA ;& LOLA SL
Aquarelle Clothing Limited
Rayonese Textile Inc., Division de Culp Inc.
H;&M Hennes ;& Mauritz (Far East) Ltd
Alison Hayes Romania
Rosset ;& Cia Limited
Vianney Textil Hogar S.A. De C.V.
TESCO INTERNATIONAL SOURCING LIMITED
Varner AS Retail
Gap International Sourcing Limited
Benetton Group
Sportswear Company Spa
Restoque S.A.
NITI Aayog
Green Fibre
Alix Partners
Vardhman Textile Ltd
SYNERGIES HONG KONG LIMITED
BIRLA CENTURY A DIVISION OF CENTURY TEXTILES AND INDUSTRIES
THE BOMBAY DYEING ;& MFG.CO. LTD
The Top Form Brassiere Manufacturing Company Limited
Lenzing Aktiengesellschaft
Landmark Group
MAS Active / MAS Kreeda / MAS Bodyline
Etam Group Strategy Hong Kong Limited
J ;& P Coats
Puma
Chori Company Limited
Permoda(Koaj/Armi/Pronto/Bkul)
John Varvatos
Asos
Hela Clothing Pvt Ltd
Aramark Uniform ;& Career Apparel, LLC
Guess Europe Sagl,
Groz-Beckert East Asia LLP
Arvind Limited
Sportmaster Ltd.
International Textile Manufacturers Federation
Helly Hansen Far East Ltd
Gloria Jeans
Abit
Splash
Midas Clothing Limited
Babyshop
Maceton Limited
Phong Phu international JSC (PPJ)
Recron Polyester from Reliance Industries Limited
T.T. Limited
Lacoste (Wanchai)
Walmart
Bluestem Global Sourcing Limited
Boardriders Asia Sourcing Limited
Truetzschler India Private Limited
Target Corporation (MN)
PVH Corporation

January 2022

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search