Personalization leads to online gains for Williams-Sonoma in Q3
November 23, 2015 02:37 PM
Adding a more personal touch paid dividends online for Williams-Sonoma Inc. during the third quarter of fiscal 2015.
Williams-Sonoma, No. 20 in the Internet Retailer 2015 Top 500 Guide, reported online sales of $628.2 million during the quarter, up 7.0% from $587.0 million during the same time last year. Online sales growth accounted for 46.4% of the company’s overall sales growth.
While online sales grew during the quarter, total sales grew a bit faster. As a result, the web accounted for a slightly smaller percentage of the company’s overall revenue —51.0% in Q3 2015 compared to 51.3% during the same time last year.
CEO Laura Alber credited the company’s online sales growth to a renewed focus on personalization during the quarter.
“We have advanced our ability to serve targeted content to customers on our websites. We have more relevant, timely and engaging (content) as a result,” she told analysts on the call, according to a transcript from Seeking Alpha. “When we personalize content, we see measurable and material conversion lift. Our custom-built platform provides us unique advantages that we will continue to leverage with new and more robust campaigns in the quarters to come.”
For the third quarter ended Nov. 1, Williams-Sonoma reported:
- Net revenue of $1.232 billion, up 7.8% from $1.143 billion during the same time last year.
- Net earnings of $70.5 million compared to $64.9 million, an increase of 8.6%.
- Comparable-brand revenue gains of 4.5%, compared to an 8.7% gain.
For the first nine months of 2015, Williams-Sonoma reported:
- Online sales of $1.731 billion, up 8.1% from $1.601 billion during the same time last year.
- Net revenue of $3.390 billion, up 7.4% from $3.157 billion.
- Online sales growth accounted for 55.7% of the company’s overall growth.
- Net earnings of $168.9 million, up 4.4% from $161.8 million.