Williams-Sonoma Inc. (NYSE:WSM) Q3 2019 Earnings Conference Call - Final Transcript

Nov 21, 2019 • 05:00 pm ET


Williams-Sonoma Inc. (NYSE:WSM) Q3 2019 Earnings Conference Call - Final Transcript


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Laura J. Alber

refresh with accelerating demand growth and improved service metrics, which drove strong digital growth and KPIs, including double digit increases in traffic and product engagement. We are seeing the benefits of improved product discovery, with higher engagement in revenues per visit. And we are effectively marketing our differentiated quality and original designs.

Demand in our stores is being driven by our trusted service culture, and the talented team of designers, who facilitate putting a whole room together for our guests. Stores are multi-channel advantaged, and customers are embracing omnichannel services, like free DTC returns and they continue to buy online, pickup in store. Design Crew also continues to drive increased sales in stores, and is offsetting the traffic declines that are happening in some malls.

Growth in Pottery Barn is being driven by successful initiatives. Our curated Pottery Barn marketplace assortment is providing our guests with more choice. while driving growth. Our apartment assortment of smaller space solutions is adding volume, and converting new and younger customers. And we are laying the foundation with increased assortment of contract grade furniture, to contribute towards the Williams-Sonoma Inc. business-to-business growth initiatives.

Another key success has been our Mindfully Made campaign, which better communicates our commitment to sustainability and responsibly sourced materials. We're on track to meet our 2021 goals with 85% of our cotton GOTS certified organic and 33% of our wood FSC-Certified. And we've extended our leadership in mindful offerings, with 50% of our posted furniture Greenguard Gold certified. These achievements have earned our company recognition by the non-profit Textile Exchange, as a top 10 company using organic cotton and preferred fibers and Sustainable Furnishings Council, as a top scoring was furniture retailer.

We believe we have setup extremely well for the holiday season in Pottery Barn. We've launched highly curated gift shops online that are inspiring and easy to shop and early reach to our customers are responding well to our assortments of cozy bedding, velvets and plaids.

We're also seeing momentum in our Pottery Barn Kids and Teen brands. We continue to see growth in our baby business, as we expand aesthetics and price points. We are using the lens of offering safest, healthiest products, thanks to our rigorous safety standards and market leading approach to offering Greenguard Gold certified furniture on over 90% of our assortment. Our range spans from baby to toddler, kids and teens, and off to college, where we saw double digit growth in the quarter, from offering a high quality dorm room bedding furniture and no nails decorating solutions.

We're also focused on growing our customer reach through new aesthetics. Based on the success of our modern baby offering, we recently announced the launch of Pottery Barn's Modern Kids and Teens, a new range of furniture crafted with eco-friendly materials, clean lines and kid oriented functionality. Additionally, we are encouraged by the strong early read on our children's holiday collections, which include expanded holiday decor, gifting and seasonal bedding.

In the Williams-Sonoma brands, our