Williams-Sonoma Inc. (NYSE:WSM) reported its results for the second quarter. Williams-Sonoma, Inc. is a retailer of products for the home. The retail segment of its business sells products through five retail store concepts (Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm and Williams-Sonoma Home).

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Williams-Sonoma Earnings Cheat Sheet for the Second Quarter

Results: Net income for Williams-Sonoma Inc. rose to $39.3 million (37 cents per share) vs. $30.8 million (28 cents per share) in the same quarter a year earlier. This marks a rise of 27.8% from the year earlier quarter.

Revenue: Rose 5.1% to $814.8 million from the year earlier quarter.

Actual vs. Wall St. Expectations: WSM beat the mean analyst estimate of 36 cents per share. Analysts were expecting revenue of $824 million.

Quoting Management: Laura Alber, President and Chief Executive Officer, commented, “The second quarter was another strong quarter for the company as comparable brand revenues increased 6% and non-GAAP EPS increased 19% to a second quarter record of $0.37 per share. Non-GAAP operating margin increased 80 basis points to a second quarter record of 8.0%. During the quarter, we continued to drive increased traffic and conversion in e-commerce, expand the reach of West Elm and extend our international presence.

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 0.9 percentage point to 37.9% from the year earlier quarter. Over that span, margins have grown on average 2.2 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 61.8% and in the fourth quarter of the last fiscal year, the figure rose 28.3%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the first quarter, by 10 cents in the fourth quarter of the last fiscal year, and by 4 cents in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 7.4% to $770.8 million in the first quarter. The figure rose 9.7% in the fourth quarter of the last fiscal year from the year earlier and climbed 11.8% in the third quarter of the last fiscal year from the year-ago quarter.

Competitors to Watch: Bed Bath & Beyond Inc. (NASDAQ:BBBY), Pier one Imports, Inc. (NYSE:PIR), Kirkland’s, Inc. (NASDAQ:KIRK), Cost Plus, Inc. (NASDAQ:CPWM), Haverty Furniture Companies, Inc. (NYSE:HVT), Italtile Limited (NYSE:ITE), Macy’s (NYSE:M) and Nordstrom’s (NYSE:JWN).

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(Source: Xignite Financials)

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