Wall Street analysts expect Williams-Sonoma (WSM) to post revenue of $1.80 billion for its fourth quarter of fiscal 2018, which represents a rise of 7.1% from $1.68 billion in the fourth quarter of 2017. Management expects revenue for the quarter in the range of $1.73 billion–$1.83 billion.
The revenue growth is likely to be driven by growth in both e-commerce and retail sales and the adoption of a new revenue recognition standard. However, the company’s revenue is expected to be offset by a decline in store count. Management expects its store count to decline by ten units in 2018 while its comparable brand revenue growth, which includes the comparable sales of its retail stores and e-commerce, are expected in the range of 0%–5% for the quarter.
Williams-Sonoma has been focusing on digital leadership, product innovation, retail transformation, and operational excellence to drive sales. In the third quarter, the company launched its Design Crew Room Planner, which allows customers to design floor plans. The company had also announced that it would add more features and functionalities to the design tool to enhance customers’ experience.
In October, WSM introduced a cross-brand registry program, the One Registry Collective, which allows customers to create a registry that includes products across a variety of brands. This program is expected to enhance convenience and personalization options for customers.
Membership of WSM’s cross-brand loyalty program, the Key, has grown threefold over the last four quarters. The growth in membership is expected to contribute to the company’s revenue growth.
WSM has expanded its partnership with the Harry Potter franchise to all three of its Pottery Barn brands. WSM has also introduced Design Crew Basics, a proprietary collection of low-priced, high-quality products across all of its brands.
These initiatives are expected to drive the company’s revenue in the fourth quarter.