Williams-Sonoma Inc, a leading retailer of home furnishings, has reported gross margin of 38.5 per cent on a GAAP basis, or 38.6 per cent on a non-GAAP basis, in the first quarter (Q1) of fiscal 2023 (FY23). The company posted a decline in its comparable brand revenue by 6 per cent in Q1 FY23. However, it highlighted a 2-year comparable growth of 3.5 per cent and a 4-year comparable growth of 46.5 per cent.

Selling, general and administrative expenses, as a percentage of revenues, were reported at 27.1 per cent on a GAAP basis, or 25.7 per cent on a non-GAAP basis. This represents a leverage of 100 basis points on a non-GAAP basis, the company said in a press release.

Williams-Sonoma reported an operating income of $199 million in Q1 FY23, or $226 million on a non-GAAP basis, with an operating margin of 11.4 per cent and 12.9 per cent respectively.

The company also posted a GAAP diluted earnings per share (EPS) of $2.35, or $2.64 per share on a non-GAAP basis.

Despite the decrease in revenue, Williams-Sonoma maintained a strong liquidity position of $297 million in cash at the end of Q1 FY23, with no outstanding borrowings. The company also reported $343 million in operating cash flow.

“Despite a challenging macro backdrop, we delivered another solid quarter of earnings. With our focus on compelling product, customer service, and profitability, we achieved our financial expectations,” said Laura Alber, president and chief executive officer. “We have a culture of innovation and an experienced team who knows how to increase operational efficiencies, control costs, deliver world-class customer service, and drive new growth opportunities.”

Fibre2Fashion News Desk (DP)

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US' Williams-Sonoma reports gross margin of 38.5% in Q1 FY23

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