Williams-Sonoma, Inc. (NYSE:WSM) Q3 2022 Earnings Call Transcript

It’s that big of an opportunity. So, we’re thrilled that we have a great partner. When you have a great partner in some of these very far away, more difficult to do business places, that’s the way to go, in my opinion. I mean, Canada is a lot easier than India or in the Middle East, you have to have a partner. But at this point, there’s nobody else that we’re in — there’s nowhere else that we’re intending to open company-owned stores. There is an opportunity to do DTC Europe eventually when it’s the right time to do that. This would not be the right time in my opinion, to do that, but we could do that out of DTC — DC and our platform that we have set up in the UK. Okay, Starbucks. We’re thrilled we finally can talk about this. We’ve been working closely with them for three years.

We’ve been doing a lot with them. And what I can say that I think they’re going to be okay with me saying is that they’re great partners, and they’ve been very creative with us to allow us to do some designs for them, to their specs, for their stores, and we’ve really built this partnership up. And I don’t know if you’ve been to that flagship, I just got the pictures. It is spectacular. And so, that’s one of many that we’ve done. You’ll start to notice and see us popping up, but I can’t give you any sort of road map or scale on the Starbucks other than to say, it’s — it’s one of the many great opportunities that we have. And we continue to really believe that B2B is going to be bigger than anyone expects. And then I’ll pass it over to Jeff for digital growth.

Jeff Howie: Sure. Hi Adrienne. We’re proud of both of our channels, and they both really did a great job this past quarter and delivered strong results. Retail was up 15.9%. Let me get to your question. B2C delivered a 4.4% comp and was sequentially in line with our Q2 results coming about 65% of the total. Long term, we continue to see e-comm growing to 70% of revenues. But both channels remain part of our digital first but not digital-only channel strategy, and we’re happy to serve the customer in every channel they want to shop in.

Laura Alber: I’ll just also add, Adrienne, that when you really think about last year, Thanksgiving to Christmas, this is the time when, unfortunately, for a lot of people, Thanksgiving or Christmas or both or got canceled, get together got canceled because of COVID. And so, it wasn’t the full open that it is now. We actually — or I actually believe that retail is going to be the big winner of this holiday season. I think you can see people are out and about, and we’re really stocked and ready to go. We are staffed. We have the goods in the stores already. And we put them there earlier so we can capture the sales. And honestly, we also have something we never had before pre-pandemic, which is our omni services. So, of course, BOPIS is the thing everybody does.