Williams-Sonoma Praises Supply Chain And IT Enhancement For Q3 Success
By Sam Lewis
Increased revenue, profits, and same store sales lets home-goods company raise annual guidance
Parent company of stores like Pottery Barn, Pottery Barn Kids, West Elm, along with its namesake stores, Williams-Sonoma released its 2013 third-quarter earnings report on Wednesday, Nov 20. The retailer is reporting increased profits for the quarter, thanking strength in PBteen and West Elm brands, along with enhancements in the supply chain and information technology, for its success through Q3.
For the quarter ending Nov 3, the high-end homeware, kitchenware, and furniture company is reporting net income of $56.7 million, up 16 percent from 2012’s Q3 profit of $48.9 million. The company reached $1.05 billion in total revenue, climbing 11 percent against last year’s $944.6 million. Same store sales rose dramatically, up more than 8 percent, beating the company’s prediction of 4 to 6 percent growth. Growths in revenue, profits, and same store sales have allowed Williams-Sonoma to lift its full-year guidance. “We believe we are well positioned headed into the holiday season,” states Alber.
The company cites improvements to its supply chain and IT infrastructure as key components to its success. “We've made substantial investments in our supply chain and our information technology infrastructure,” says Williams-Sonoma’s CEO, president, director and member of incentive award committee Laura Alber. She credits these items as two of the company’s core competencies, delivering “an elevated experience to our customers in whichever channel they choose to shop.”
The company has recently opened a distribution center in New Jersey. This facility focuses on fulfilling orders for retail stores in the Northeastern U.S. Alber credits the NJ facility for increasing service flexibility to the region’s stores, while reducing inventory replenishment times. “In the past 2 weeks, we have completed the in-sourcing of two major furniture hubs, as we continue to increase our control over and improve the customer experience of furniture home delivery,” says Alber.
Williams-Sonoma has also enhanced its information technology infrastructure, preparing in advance for the 2013 holiday shopping season. Williams-Sonoma has improved the site’s personalization, believing personal relevancy is crucial to customer engagement. Order-tracking has also undergone enhancements, becoming more visible and user-friendly for its customers. The company is also enriching the mobile experience for customers. “Mobile devices are becoming a very important tool for connected customers at every stage of the purchase decision,” says Alber. The company aims to make its mobile sites more user-friendly, image-driven, and simply searched with an easy checkout system.
See how Williams-Sonoma went global with four brands simultaneously
Finally, the company believes its e-marketing strategies are beginning to pay off. By evolving marketing programs to become more sophisticated, Williams-Sonoma believes it will result in more revenue from loyal customers, along with new customers at a lowered cost.
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