Williams-Sonoma Inc. reported March 16 that revenue grew to $8.674 billion in its fiscal 2022, which ended Jan. 29, 2023. That’s a 6.5% increase year over year. The increase comes after increasing 22% in 2021, and 17% in 2020, chief financial officer Jeff Howie said in the retailer’s year-end earnings call. Williams-Sonoma ecommerce sales accounted for 66% of total revenue across all brands in fiscal 2022, he said.
“With our digital-first but not digital-only platform, we saw growth across both channels,” Howie said. He added that ecommerce grew 4.5% compared with fiscal 2021, and in-store sales grew 11.1%.
Williams-Sonoma ranks No. 22 in the Top 1000, Digital Commerce 360’s database of North American ecommerce retailers by web sales.
Williams-Sonoma ecommerce growth
Moreover, Howie said Williams-Sonoma expects to spend $250 million in capital expenditures during fiscal 2023 to invest in long-term growth. That would be a 30% decrease from 2022, he said. Williams-Sonoma expects to dedicate 80% of that spending in 2023 to driving ecommerce technology enhancements and supply chain efficiency initiatives, Howie said.
President and CEO Laura Alber said the retailer expanded its ship-to-store services in 2022 as it transitions its stores to become omnichannel fulfillment hubs.
“You see people with large ecommerce businesses, but no stores,” Alber said. “You see people who have enormous stores, but they really don’t invest much in ecommerce. And we know that the multichannel shopper shops more, and it’s experience they’re looking for. They can research online and go sit on the sofa in the store.”
She said this is an advantage for the retailer, adding that it can better turn inventory because it can ship from stores, where customers can pick up their orders.
Brand breakouts
Williams Sonoma
For the fourth fiscal quarter, the retailer’s namesake brand’s net revenue decreased to $524 million. That’s down 2.5% from $552 million in the year-ago quarter.
For the full fiscal year, Williams Sonoma net revenue decreased to $1.287 billion. That’s down 1.7% from $1.345 billion in fiscal 2021.
Pottery Barn
For the fourth fiscal quarter, Pottery Barn net revenue increased to $967 million. That’s up 5.8% from $921 million in the year-ago quarter.
For the full fiscal year, Pottery Barn net revenue increased to $3.556 billion. That’s up 14.9% from $3.121 billion in fiscal 2021.
Pottery Barn produced both the largest revenue and the largest growth among the brands under the Williams-Sonoma Inc. umbrella, both in Q4 and for the full fiscal year.
West Elm
For the fourth fiscal quarter, West Elm’s net revenue decreased to $534 million. That’s down 10.7% from $598 million in the year-ago quarter.
However, for the full fiscal year, West Elm’s net revenue increased to $2.278 billion. That’s up 2.5% from $2.235 billion in fiscal 2021.
Williams-Sonoma earnings summary
For the fiscal fourth quarter ended Jan. 29, Williams-Sonoma reported:
- $2.453 billion in revenue, down from $2.501 billion in the year-ago quarter.
- Gross margin decreased 3.8% to 41.2%. The company attributed this to higher inbound and outbound shipping and freight costs, as well as occupancy costs.
- Pottery Barn had the largest revenue and quarterly growth among Williams-Sonoma Inc. brands.
For the fiscal year ended Jan. 29, Williams-Sonoma reported:
- $8.674 billion in revenue. That’s a 6.5% year-over-year increase. It’s also a 22% increase over 2021 and 17% increase over 2020.
- Williams-Sonoma ecommerce represents 66% of total revenue.
- Pottery Barn had the largest revenue and full-year growth among Williams-Sonoma Inc. brands.
Percentage changes may not align exactly with dollar figures due to rounding.
Sign up
Stay on top of the latest developments in the ecommerce industry. Sign up for a complimentary subscription to Digital Commerce 360 Retail News.
Follow us on LinkedIn, Twitter and Facebook. Be the first to know when Digital Commerce 360 publishes news content.