SAN FRANCISCO — Williams-Sonoma net revenue jumped 22.4% to $1.765 billion for the third quarter ended Nov. 1, an increase driven by acceleration across all brands.
“In the third quarter, sales again outperformed expectations with demand comp up nearly 31% compared with a net comp of 24%, driven by strength across all brands,” said Laura Alber, president and CEO.
Alber noted that e-commerce accelerated sequentially to a record net comp of more than 49%, and store performance improved throughout the quarter to a net comp of negative 11%.
“Our vision is to own the home,” she said, adding, “We are confident that we will continue to drive accelerating sales growth with increasing profitability and evolve into an even more attractive business for our stakeholders during and post pandemic.”
The net comparable brand revenue growth of 24.4% included Williams Sonoma at a record 30.4%, Pottery Barn at 24.1%, Pottery Barn Kids and Teen at 23.8% and West Elm at 21.8%.
Net income increased to $201.8 million for the quarter, up 170% compared with the year-ago period. Diluted earnings per share came in at $2.54 for Q3, up from 94 cents per share in the 2019 quarter.
For the quarter, Williams-Sonoma maintained a strong liquidity position of $774 million in cash, including approximately $727 million in operating cash flow resulting from the company’s strong performance year-to-date, enabling it to repay in full all short-term borrowings under its $500 million revolver, reinstate its share repurchase program and repurchase $109 million in shares in the third quarter. It also committed to increasing its next quarterly dividend payment by 10% to 53 cents per share.
Due to the dynamic nature of the COVID-19 pandemic and ongoing uncertainly, the company is not providing guidance for fiscal year 2020.