For 2019, Williams-Sonoma’s (WSM) management has revenue guidance in the range of $5.67 billion–$5.84 billion, with its overall comparable brand revenue expected to rise between 2% and 5%. Management also plans to close 30 underperforming stores to lower its store count to 595 units by the end of this year.
Analysts expect WSM to report revenue of $5.76 billion this year, which represents a rise of 1.7% from $5.67 billion in 2018. The growth in its comparable brand revenue is forecast to drive its revenue, while the decline in its store count could offset some of the increase.
WSM is focusing on pursuing cross-brand initiatives, implementing technological advancements to enhance the customer experience, improving the efficiency of its supply chain to increase the speed of delivery and customer satisfaction, growing the sales of its new business-to-business division, and implementing various marketing and promotional initiatives to drive its sales.
WSM plans to introduce new cross-brand marketing initiatives, broad-reaching gamification, easier reward redemptions, and enhanced mobile and desktop capabilities to encourage more customers to enroll in its loyalty program, the Key Rewards. In the first quarter, the total number of rooms created by Design Crew Room Planner, WSM’s photo-realistic space-planning tool, rose 40%, with the company increasing its product coverage across the Pottery Barn, West Elm, and Williams-Sonoma Home brands and enhancing the customer experience via more accurate and intuitive design features. Later this year, the company will be expanding its Room Planner tool to other brands.
To support its business-to-business division, WSM has established a cross-brand, cross-functional support team with standardized processes to facilitate large-scale contract projects. It’s also restructuring its customer support to regionally focused project management to better suit its business-to-business customers.