Williams-Sonoma puts 2011 to bed with higher profits

SAN FRANCISCO — Williams-Sonoma ended fiscal 2011 with revenue and earnings growth in its fourth quarter. The company reported that net revenues for the fourth quarter of 2011 increased 6.1% to $1.3 billion versus $1.2 billion in the fourth quarter of 2010. The company reported diluted earnings per share on a GAAP basis of $1.17 compared with $1.05 for the same period last year.

Laura Alber, president and CEO commented, “Fiscal 2011 was a year of milestones – both in terms of operational performance and progress against our long-term growth initiatives. Through strong execution and a superior multichannel strategy, we delivered record earnings and profitability in a promotional environment, never losing sight of our mission to enhance our customers’ lives at home.”

The company reported comparable-brand revenue growth of 6.6% for the quarter versus 10.9% for the same period last year. Comparable brand revenue growth includes both comparable-store net revenues and total direct-to-customer net revenues. See Exhibit 2 for quarterly comparable brand revenue growth history by concept.

During fiscal 2011, net revenues increased 6.2% to $3.721 billion versus $3.504 billion in FY 10. Comparable-brand revenue in fiscal 2011 increased 7.3%.

Diluted earnings per share for fiscal 2011 on a GAAP basis were $2.22 compared with $1.83 for the same period last year.

For the first quarter of 2012, Williams-Sonoma is expecting net revenues in the range of $800 to $820 million and comparable-brand revenue growth between 3% and 5%.