Williams-Sonoma Inc. (WSM) Wednesday reported a second-quarter profit and revenues that trumped Wall Street expectations, driven largely by online sales. However, shares of the retailer slipped 6% in the extended trading session.
The company reported second-quarter profit of $134.6 million or $1.70 per share, up from $62.6 million or $0.79 per share last year.
Adjusted earnings for the quarter were $1.80 per share, compared with $0.87 per share last year. On average, 21 analysts polled by Thomson Reuters expected an earnings of $1.00 per share.
Net revenues grew 8.8% to $1.49 billion from $1.37 billion last year. Revenues were driven largely by a significant acceleration in e-commerce revenue growth to about 46%. Analysts had a consensus revenue estimate of $1.47 billion.
E-commerce penetration reached an all-time high of almost 76% of total company revenues, mostly attributable to the COVID-19 pandemic. Total comparable brand revenue growth was 10.5%.
“We delivered an exceptional second quarter with net comp growth of 10.5% and demand comp growth of almost 19%, operating margin expansion to nearly double that of last year, and record earnings growth of over 100%. E-commerce again drove our results growing 46% in the quarter, and our stores performed better-than-expected, improving throughout the quarter as we re-opened,” said CEO Laura Alber.
Moving ahead, the company said it is not providing guidance for fiscal year 2020, “given the dynamic nature of the COVID-19 crisis and the continuing macroeconomic uncertainty that could impact its performance.”
WSM closed Wednesday’s trading at $98.96, up $3.60 or 3.78%, on the NYSE. The stock, however, slipped $5.99 or 6.05% in the after-hours trade.
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