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

Shipping from store is not a thing that everybody does, but we have learned to get quite good at it. And then also shipping to the store is something we do. And we have just enabled, which I am quite excited about, shipping to any store in the Company. So for example, if you buy online, PB Kids, but there’s no PB Kids next to you, you can ship it to your local Williams-Sonoma store and you go pick it up. And we did this when we worked on dorm and our dorm strategy this summer, we saw great results. And so, I think this is going to be something that continues to build, not just because we don’t have stores in every market, but because also it’s a convenience play as people are back in the office more and also some people don’t want to have to wait at home or UPS won’t deliver to their ZIP code for theft reasons.

This is a way to get around having to be there and wait for it to drive at your port. So, this is yet another example of how we’re taking omni, and it optimizes the retail inventory. So for example, if I’m wrong, and retail isn’t as good as I think it’s going to be, this inventory can be shipped against DTC orders, which I think is a really exciting advantage that we have that particularly stores or brands that don’t have retail, don’t have the opportunity to achieve.

Operator: Your next question comes from the line of Anthony Chukumba with Loop Capital.

Anthony Chukumba: So just two real quick ones. First off, super exciting about Starbucks. I know in the past, you said that you expected B2B sales to be about $1 billion this year, and I was just wondering if — I just noticed you hadn’t commented on that, so I’m just wondering if that’s still the right way to think about it? And then, my second question is just kind of what you’re seeing from — in terms of the competitive environment. I mean, obviously, you’re sticking with getting rid of site-wide promotions, I 100% agree with that. But just I was wondering if you’re seeing your competitors get any more promotional. Thank you.

Laura Alber: Jeff, do you want to go ahead with B2B?

Jeff Howie: Sure. Anthony, good evening. We see our track on B2B just continuing to propel forward. And we are on track to hit the $1 billion this year. The demand pipeline through our projects and our major partners continues to be strong, and we’re very confident in our ability to get there. And from a long-term standpoint, it is such a fractured market, total addressable market, $80 billion. And we think we have a really compelling proposition with our portfolio of brands, our in-house design, our global sourcing capabilities to really capture this. And we’re seeing a lot of promising signs out there in terms of pent-up demand for renovations in hotels and restaurants. And we think it’s quite a great opportunity for us.

Laura Alber: Jeff, will you take the second piece of the question?

Jeff Howie: Could you repeat your second question, Anthony?