Williams-Sonoma’s Digital Shift

Williams-Sonoma enjoyed strong growth in online sales in the second quarter of 2016, a boost of 5.2 percent, while profits for the rest of its brands were mostly flat, according to Internet Retailer.

So, now, Williams-Sonoma says it will focus more of its efforts and marketing strategy on digital channels.

For the quarter that ended July 31, Williams-Sonoma saw sales of $599.7 million, compared to $569.9 million for the quarter that ended during the same time period last year.

“Our eCommerce business in Williams-Sonoma has been the principal driver of brand growth,” CEO Laura Alber told analysts during an earnings call last week.

Alber said that Williams-Sonoma would be directing more of its marketing budget toward digital initiatives and cutting down on its print catalogs.

Alber said that mobile traffic and conversion saw a “significant” increase in the quarter and that Williams-Sonoma planned to focus on improving its mobile and omnichannel offerings to give mobile customers a better experience when it came to registry, checkout and furniture buying.

In total, Williams-Sonoma’s net sales increased 2.7 percent to $1.16 billion from $1.13 billion. Store sales jumped 0.4 percent to $559.3 million from $557.1 million in the previous quarter. And net earnings were $51.8 million, compared to $53.7 million during the same quarter last year.

“The breadth, depth and detail in our house file provide us with a material advantage, and we are partnering with great companies to help to advance and take advantage of emerging personalization capabilities for custom segmentation and targeting,” Alber told analysts.