SAN FRANCISCO — Top 100 retailer ’s profits jumped nearly 70% in the , even as net revenues lagged 2023 levels.
Net revenues for the three months ended April 28 totaled $1.66 billion, down 4.9% compared with $1.755 billion over the same three-month span in 2023. Additionally, the company noted that its revenues for the quarter were down 10.9% from two years ago and off the mark by 1.4% vs. three years back.
By brand, totaled $677 million in revenues in the quarter, down 10.8% vs. $768 million in the first quarter of 2023, while ’s $430 million represented a 4.1% decline compared with $452 million a year back.
While revenues were down, . For the quarter, posted a profit of $265.67 million, or $4.07 per diluted share, up 69.72% against $156.53 million, or $2.35 per diluted share a year ago.
The company determined that it over-recognized freight expense in fiscal years 2021, 2022 and 2023 for a cumulative amount of $49 million, and after evaluating the error, both qualitatively and quantitatively, it determined that no prior interim or annual periods were materially misstated. It included an out-of-period adjustment of $49 million to reduce cost of goods sold and accounts payable, which corrected the cumulative error on the balance sheet as of Jan. 28.
“We are pleased to deliver strong results in the first quarter of 2024, driven by an improving top-line trend and continued strength in our profitability,” said , president and CEO. “We remain committed to executing on our three key priorities in 2024: returning to growth, elevating our world-class customer service and driving margin.”
For the fiscal year, Williams-Sonoma is maintaining its guidance of annual net revenue growth in the range of -3% to +3%, with comps in the range of -4.5% to +1.5%, while raising guidance on operating margin between 17.6% to 18.0%. Over the long term, the company continues to expect mid-to-high single-digit annual net revenue growth with an operating margin in the mid-to-high teens.