Q2 2024 Williams-Sonoma Inc Earnings Call Transcript
Key Points
- Williams-Sonoma Inc (WSM) reported strong operating results for Q2 2024, with an operating margin of 16.2% and earnings per share of $1.74.
- The company raised its full-year operating margin guidance to a range of 17.4% to 17.8%, reflecting confidence in its profitability profile.
- Williams-Sonoma Inc (WSM) continues to see success in new product introductions and collaborations, particularly in brands like West Elm and Pottery Barn.
- The company's e-commerce sales mix remains strong, sustaining at 66% of total revenues, which contributes to higher operating margins.
- Williams-Sonoma Inc (WSM) has significantly reduced its China-sourced goods from 50% to 25%, mitigating potential risks from tariffs and trade issues.
- Comparable sales for Q2 2024 were down 3.3%, reflecting a challenging market environment.
- The company has reduced its full-year revenue outlook to a range of down 4% to down 1.5%, citing macroeconomic uncertainty and a slow housing market.
- Pottery Barn and West Elm reported negative comps of 7.1% and 4.8% respectively, indicating softness in key segments.
- Despite strong operating results, the company acknowledges that the home furnishings market remains challenged due to economic uncertainty.
- SG&A expenses increased by 390 basis points year-over-year, driven by higher employment expenses and advertising spend.
Welcome to the Williams-Sonoma, Inc. second-quarter 2024 earnings conference call. (Operator Instructions) I would now like to turn the call over to Jeremy Brooks, Chief Accounting Officer and Head of Investor relations. Please go ahead.
Good morning and thank you for joining our second quarter earnings call. Before we get started, I'd like to remind you that during this call, we will make forward-looking statements with respect to future events and financial performance, including our revised guidance for fiscal '24 and our long-term outlook. We believe these statements reflect our best estimates However, we cannot make any assurances these statements will materialize, and actual results may differ significantly from our expectations. The company undertakes no obligation to publicly update or revise any of these statements to reflect events or circumstances that may arise after today's call. Additionally, we will refer to certain non-GAAP financial measures.
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