US kitchenware and home furnishings retailer Williams-Sonoma has reported an increase in net earnings, despite a slight decline in revenue for the third quarter of the fiscal year 2024.  

The home retailer's revenue reached $1.80bn, compared to $1.85bn in the same quarter of the previous fiscal year. 

Despite the drop in revenue, the company's net earnings rose to $248.95m from $237.28m in Q3 FY23.  

Diluted earnings per share also saw an uptick, climbing 7.1% to $1.96, up from $1.83m in the corresponding quarter of the last fiscal year. 

During the 13 weeks ended 27 October 2024, Williams-Sonoma's operating income increased slightly to $320.64m from $315.07m in Q3 FY23.   

The retailer's operating margin improved by 80 basis points (bps) to 17.8%, and its gross margin saw a significant rise of 230bps to 46.7%. 

The company's gross profit for the quarter was reported at $841.71m, an increase from $822.36m in Q3 FY23.  

Williams-Sonoma has therefore revised its fiscal 2024 guidance upwards, anticipating a smaller annual net revenue decline of between 3% and 1.5%, with comparable sales expected to decline between 4.5% and 3%. 

The updated operating margin forecast for fiscal 2024 is now set between 18.4% and 18.8%, including a first-quarter out-of-period adjustment of 60bps. 

Without this adjustment, the operating margin is expected to be between 17.8% and 18.2%. 

Williams-Sonoma president and CEO Laura Alber said: “We are pleased with the results of our third quarter, beating both top and bottom-line expectations. The quarter was driven by continued improvement in our sales trend, market-share gains and strong profit.  

“Our operating results reflect the operational improvements that we have been focused on all year, and demonstrate the strength of our margin profile in a difficult environment.”  

The company is expanding its presence in Mexico and India with plans to open new stores in 2025. It has also renewed its partnership with John Lewis in the UK.