Williams-Sonoma shares jumped to new highs on Thursday, after the household goods retailer recorded better results than expected for the fourth quarter.
The company’s e-commerce business has played a key role in increasing sales to make up for lost business in physical stores. But CEO Laura Alber anticipates a strong recovery in brick sales as the US economy emerges from the pandemic.
“The store’s traffic is coming back,” she told CNBC’s “Mad Money.” “I don’t think people realize the advantage we have in retail.”
Williams-Sonoma, known for selling kitchen products, generated $ 2.3 billion in revenue in the most recent quarter ended Jan. 31. It was the third consecutive quarter of year-on-year growth, following a drop in sales early last year when the Covid-19 blockade came into effect.
The San Francisco retailer also reported year-round results in fiscal year 2021. Despite pandemic-era business disruptions, the company had its best year of growth in nearly two decades.
Online sales increased by 45% during the fiscal year, compared to a 24% decrease in in-person sales. However, Alber said the company will not give up its brick strategy.
“We are talking about e-commerce and this will be our growth, but this recovery of retail is a big part of the story,” she said.
Williams-Sonoma shares rose 18.46% on Thursday to close at $ 161.57.