Williams-Sonoma Inc. (NYSE:WSM) Q3 2019 Earnings Conference Call - Final Transcript
Nov 21, 2019 • 05:00 pm ET
[Operator Instructions]. Okay. First from Barclays, we have Adrienne Yih.
Yes, good afternoon and congratulations. Laura, my first question is about -- one of your pure-play competitors, Wayfair, they spoke on their call about when the tariffs came in, and since they don't carry inventory, they had a pricing disruption that delayed the consumer behavior, the purchasing behavior. I'm wondering if you've seen any of that? Seems like not. But if you could talk about that. And then secondarily, kind of, on a longer-term basis, now that Mark and Graham and Rejuvenation are double digit kind of growth, what are the long-term plans for that? And then Julie really quickly, in terms of kind of helping us with some tariff impact as we roll into 2020, can you help us kind of think about what percentage will be sourced from China and any impact? How long your current stock of inventory, the pre-tariff inventory can carry you into 2020? Thank you very much.
Laura J. Alber
Sure. Thanks Adrienne. We have not seen any delayed purchasing from our customers. We have very strong demand and it was very consistent through the quarter and it's continuing. So I haven't noticed that. In terms of Mark and Graham and Rejuvenation, all of our brands work together in a symbiotic way to serve customers in life stages and lifestyles. Rejuvenation is a very specific focus on house parts and hardwired lightings, and we know that remodeling homes and that people's love for their homes is not waning. And we're seeing great growth, because we sit in a very unique place with this high quality custom configured lighting and it's very difficult. I know many of you have probably done remodels of rooms and to match all the finishes in a room, even from a single retailer, can be tricky and we make it all -- we finish it all, I should say in Portland. So all the finishes match perfectly. And so we continue to see the growth, we're seeing it both in the stores, which are comping nicely, and online. We're abating a couple of more stores in key locations. But we don't think that -- we also -- we don't have to open stores to continue this growth, a lot of natural growth and natural category growth in Rejuvenation.
Mark and Graham really leveraged our strong personalization techniques that we have in the company, and it's again, a differentiated way for a customer to shop for a gift. I mean, nothing like giving someone something for the holidays, that has their name on, and really shows that you thought of them and so we see both continuing to grow and be sizable and they are both producing very profitable bottom line. So they're helping us with our EPS and they will continue to expand and leverage the base that we've built on the foundation of the company.
Great, thank you.
Julie P. Whalen
Adrienne, this is Julie. Regarding the tariff impact, I mean obviously on our next call,