US-based Williams-Sonoma, the business behind furniture brand West Elm, enjoyed an uptick in sales of 1.1% to $1.245bn (£965m) for its latest Q3 ended 30 October 2016.
The company revealed that West Elm sales drove group performance, registering a 12% increase in revenue, albeit slightly behind its 15.7% growth in Q3 2015, but wasn’t enough to stop a decline in overall comparable brand sales, down by 0.4%.
Net retail revenues in Q3 2016 decreased 1.2% to $597m (£480m) from $604m (£486m) in Q3 2015, whilst net earnings were down by 1.6% to $69.4m (£55.8m), or 78 cents per share, compared to $70.5m (£56.7m), or 77 cents per share, in the third quarter last year.
Laura Alber, president and CEO, commented: “We saw continued double-digit growth in West Elm. We also made additional progress across our supply chain and continued to reduce inventory, which resulted in better gross margins, allowing us to meet our earnings commitment at the high end of our guidance range, despite a more difficult retail environment.
“Although the current environment is less certain, we remain focused on what we can control, and we are confident that the ongoing progress on our strategic initiatives will improve service for our customers and will drive long-term sustainable profitable growth for our shareholders.”