Williams-Sonoma’s stock jumped to new highs on Thursday after the domestic goods retailer reported better-than-expected results for the fourth quarter.
The company’s e-commerce business played a key role in sales growth to offset the loss of business in physical stores. But CEO Laura Alber is predicting a strong rebound in brick and mortar sales as the U.S. economy emerges from the pandemic.
“Store traffic is returning,” she told CNBC’s “Mad Money” program. “I think people don’t realize the advantage that we have in retail.”
Williams-Sonoma, known for selling kitchen products, generated $ 2.3 billion in revenue in its last quarter, which ended January 31. It was the third consecutive quarter of year-on-year growth, after a drop in sales at the beginning of last year, when Covid-19’s general blocking took effect.
The San Francisco-based retailer also reported the full year results for its fiscal year 2021. Despite business interruptions in the pandemic era, the company had its best growth year in nearly two decades.
Online sales grew 45% during the fiscal year, compared to a 24% drop in face-to-face sales. Still, Alber said the company will not give up on its traditional strategy.
“We talk about e-commerce and that will be our growth, but this retail recovery is also a big part of the story,” he said.
Williams-Sonoma shares jumped 18.46% on Thursday, closing at $ 161.57.