Shares of Williams-Sonoma (NYSE: WSM) were soaring today, up 14.5% as of 12:33 p.m. EDT, after the home-furnishings retailer announced better-than-expected second-quarter 2018 results.
Quarterly revenue climbed 6.1% year over year to $1.275 billion, while adjusted earnings per share jumped 26.2% to $0.77. Both ranges compared favorably to Williams-Sonoma's guidance, which called for adjusted earnings per share of $0.65 to $0.70 on revenue of $1.25 billion to $1.275 billion.
Image source: Williams-Sonoma/Pottery Barn.
"Our powerful multi-channel, multi-brand platform, together with our strong execution of our strategic initiatives in digital leadership, product innovation, retail transformation and operational excellence are having a positive impact on all parts of our business," stated CEO Laura Alber.
To be sure, the company delivered comparable-brand growth at each of its core retail concepts, including increases of 2% at Pottery Barn, 9.5% at West Elm, 1.6% at Williams-Sonoma, and 5.7% at Pottery Barn Kids and Teen. Retail segment revenue also climbed 3.1%, to $588 million, or 46.1% of total sales, and e-commerce revenue rose 8.9% to account for the remaining 53.9%.
Williams-Sonoma also increased its full-year 2018 guidance for revenue in the range of $5.565 billion to $5.665 billion, up from $5.495 billion to $5.655 billion previously, and for adjusted earnings per share of $4.26 to $4.36, up from $4.15 to $4.25 before.
All things considered, this was a straightforward beat and raise, and investors are responding accordingly.
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