Williams-Sonoma Expanding West Elm Chain

SAN FRANCISCO-Despite operating in a challenging environment, Williams-Sonoma is continuing expansion plans, particularly of its West Elm division, executives said at the company’s fourth-quarter conference call.

The retailer will open 29 net new units: six Williams-Sonoma stores, six Pottery Barns, two Pottery Barn Kids, 12 West Elm Stores, two outlet stores and one Williams-Sonoma Home unit. Plans also call for 20 remodels.

“We’ll be operating in one of the most challenging environments we’ve seen in many years. Our approach is that this will not be business as usual,” said Howard Lester, chairman and CEO. “[But] over the last couple of years we’ve had many opportunities presented to us and we want to take advantage of them.”

Net revenues for the 14-week fourth quarter increased 9.5% to $1.4 billion over the same, 13-week quarter the previous year. Comparable-store sales dropped 0.1%. Earnings were $124.6 million, up from $121.1 million the previous year.

Net revenues for the 53 weeks fiscal year rose 5.8% over the previous, 52-week, year to $3.94 billion. Comparable store sales rose 0.3%. Earnings were $195.8 million, down from $208.9 million the previous year.

Williams-Sonoma operates 600 stores under the Williams-Sonoma, Pottery Barn, Pottery Barn Kids, PBteen, West Elm and Williams-Sonoma brands.