Williams-Sonoma (WSM) 23 May 232023 Q1 Earnings call transcript

Welcome to the Williams-Sonoma, Inc.

First Quarter 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the conclusion of the prepared remarks.

I would now like to turn the call over to Jeremy Brooks, Chief Accounting Officer and Head of Investor Relations. ahead. go Please

thank call. And joining first our Good you earnings quarter morning. for

I'd this best and that make you these and like remind to We outlook. during guidance fiscal with believe to our long-term including reflect forward-looking respect call, future performance, events our financial statements for ‘XX estimates. statements will we

and differ significantly may However, make assurances any results we these our actual expectations. cannot statements will materialize, from

events these or to obligation publicly or statements no after to of call. reflect that undertakes Company The today's circumstances revise update arise may any

Additionally, measures. results. we be be for non-GAAP will read refer to should These considered certain financial and GAAP not measures should our together with replacements

detailed also with the measure earlier conjunction we A directly issued filings measures Exhibit be most with morning. our press the comparable appears call This considered release of this GAAP in should reconciliation X non-GAAP SEC. to in to the

Relations Finally, a our on replay Investor of available this be will website. call

turn and Laura to to the over Officer. like Executive I'd Chief Now call President our Alber,

Thank With and to you, achieved thank solid earnings, compelling our call. challenging Williams-Sonoma, begin team delivering by strong work and Jeremy. customer want in profitability, on backdrop. Inc. despite the joining at and hard of our Good macro we another I their you our talent thanking for focus quarter morning, for products, a everyone, service, expectations. financial

digital led sustainable design first home distinguish largest to world's continue the We as ourselves retailer.

allows home lead our market, at found things distinguishing furnishings from products to deliver What design cannot offers value quality, to us? This and other importantly, else. best our Most to company sourcing innovation, high are the the organization. vertically us it anywhere be allows us that No distinguish with us capabilities competition. in-house that integrated sustainable

for We new our design. our in-house to through opportunities are inspire customer looking always

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company Our with innovation. leads

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optimize channel With first, States, the no As digital you e-commerce the only our and of digital business curated for that's are with stores platform, aspirational e-commerce world-class our CRM company assortments. one not players our our in digital the spend know, operate and strategy analytic are customer our designed transforming with largest and in-house United other we retail And offers but home They brands. a experience. furnishings data our connections. proprietary billboards as serving beautifully customer teams we and

are most most refocused competitive and our strategic advantage most optimization And efforts our capabilities fleet retail the have locations. profitable, omni the Our in market. on inspiring,

In right control to to customers decisions purchase. to a We customer size spend elevated re-platform our organization our efficiency. and and imagery SG&A cost, cost show focus expense, made limiting experience. enhanced We excellence new our where tough QX, higher driving of leveraging rejuvenation's conversion through and operational we by of our capturing more our to demand an drive continued, examples managed higher and level efficient channels, website, ad proven, to intent

service, by We on making manage the which affected control receipts progress our are pandemic. customer inventory levels, substantial to and we our was

time customer improved successfully We have including delivery. on metrics

costs. will improve to market shipments, and We reduce both inventories out and levels multiple rebalance working which reduce are hard of of further to service

to here our them, are else without serve matters. nothing customers We

Lastly, of in culture. one for companies based retailer list. recognized top In furnishings lead were home the we on as XX QX, home XXXX. our we the We ranking are values employers America's with the diversity best and furnishings highest industry efforts Forbes on sustainability the list of

Turning to the quarter.

ran While of our to XX.X% earnings X.X%, X%, top our our was results. operating comp line above XX.X% margin two-year per significantly comp we XXXX down delivered an four-year our was comp plus and pre-pandemic with share of $X.XX

The kitchen In softness notable trends trend in our furniture negative but mid-single-digits offerings, was to most our in XX% in softened terms from our that durability and in than offerings. in of is still better offerings high didn't and us that brands our demand, high of competition spending. positions portfolio ticket us QX down spending. electronics shift same this trends demand These we see QX. product the within our diversification customer in with tell disparate ticket The and

on Pottery to slightly but turn comp four-year a on a and let's basis details negative Now with net down ran Barn basis. more XX% in QX, the in two-year brands. X.X% XX.X% ran a

We furniture the we outdoor are in spring. early our business demonstrating versus delayed summer caution business, till customers season purchasing purchases. high demand more on subdued seeing And considered with seeing in are our ticket later in

extend strong text and off Coastal customer patchwork for our summer been The to and Day strong to block and focus are quilts strength categories our beautiful patterned into ahead Americana lighting. PB, heritage and quilts. to on decor tabletop, summer and pillows, the a easy the bedding and redesigned seasonal good postpone seeing newness and exclusive across linen, response bigger start we customers has and frames, projects of textiles, decorating in In is out However, textiles weekend decorative season. our print print updates. bath as demand decorating choose table should with to Leveraging Memorial

to a performance. As strong these products value categories our we entertaining to increasing year lineup marketing the has a are the drive brand textiles, and we and ahead, decorating, of look great at of

continue we business but positive categories, ran baby was many these elevating four-year parts furniture XX.X% see The ran businesses. see some a in stage the Pottery in the comp strength but we experience of children's basis. to business on a and negative customer life on and focused basis, on a Barn are Children's We our X.X% QX X.X% in of in pressure negative two-year

For saw which Nursing baby us selection example, personalized gifts, our gear, for Seating, our business Greenguard of baby baby business. we our as curated a Gold strength, well and positions registry in in the destination

storage. are bound And nursery our and assortment Pottery brand, receive to mobile with campus, dorm help included online their our of resonated our with partnership are offer, excited across stores college in Kids near bedding shop team to in company LoveShackFancy, experts. students and college needs and dorm launched we to any from customers twin with covering our our stores with a Customers and can extra-long has can ship our register compelling showcase we app, new have which customers. product of our Barn excited In the

our Teen we our quarter Kids of Also, for apps. results Pottery pleased and Barn full first shopping with are

XX.X% easy on ran the basis. macro We designed mobile Elm a positive but across was Elm customers to be respond experience, web West brand and thoughtfully are environment. a The four-year on seeing negative continued apps by all to two-year to West are In the shop, X% KPIs. the a outperforming the negative basis, tough XX.X% QX, affected and both most

a its as in the increasing leveraging design areas: Elm most acquisition; We and new of Kornbluth entertaining, awareness next Day immediately the expands brand product of with decorating, on value; April leading started see percentage space; one, She'll customer opportunities. focus is four, growth highest white lead on president the textile, brand chapter Xrd. our accessories, industry team with furniture. into offerings. and with and that four excited West assortment its expanding through We're West three, and in channel Elm Elm opportunity West seasonal growth brand two, into

very trajectory Elm. of excited growth long-term about be the West to continue We

X.X% basis. The QX. basis, negative Williams-Sonoma a content, the X.X$, increasing on brand Williams-Sonoma product The innovation, focused a remains on On positive selling. comp negative brand team two-year ran exclusivity, four-year and full a relevant but XX.X$ price ran in

and our the We We kitchen in throughout the collaborations Williams-Sonoma opportunities housewares to launches see ability industry. the confident business. the and Home innovative of new remain furnishings market and planned have a pipeline share we into assortment gain of year, product integration our from

has with the the business growth business been and on the running side. side the has macro like initiatives focused the trade Now, I'd trade of BXB This contract. on environment. to opportunity by The growth impacted beginning contract remain our update more you in total. down formats, two in to mid-double-digits But business-to-business. on grew X% quarter continue we Contract despite

range our capabilities, out projects fact, design stronger win a multi wide for last products our BXB and And year. in due brand offered continue currently to pipeline of portfolio. a we in of have compared to bid, accounts We

expansion our is global growth Another markets. initiative into

are first we Barn in continues momentum globally, opening XXXX. Pottery store India third as in of our retail brand driving with to India expand and Elm strategic expectations Pottery store and to the open additional expansion XXXX. our store plan Barn locations exceed growth market, we and is we QX our market to a in West the second Kids Our

and an West seeing introducing customer rejuvenation, market. East, look QX. opening growth BXB with We'll to additional launched year. Canadian their region and Home led with design the Williams-Sonoma highlight we Graham Canada this in Barn Elm across brands Middle Additionally, Mark and our biggest services. by QX, of a with in representing Pottery also opportunity We we the website the strength the Canada, the are Arabia in for our of to launch of all and digital Saudi store in forward the later strong be in in is expanding

environment strong by we we by will fragmented to return a world-class summary, gain of to customer the But continue In customers service, trust brands we our with inspiring and and market, we profits. continue generate that uncertainty strong consumer. recognize in share continued and with to portfolio will building the is there operate a and with highly

one the front, only a guidance quarter we to the volume come. fiscal lot with are year more On into

with have opportunities supports in considered our and our lineup trends of brands, which XXXX guidance. our We a two-year four-year

the the easier, QX, start up back the roll and half, indicated comps we the to year pressures strong our cost the supply chain declining But and macro. are tougher compares of we in As in be with get will our first-half against off.

short-term, opportunity customers everywhere. past we our confident to our in and long-term furnish Looking guidance the remain our

digital platform, that a In-house first, a built industry. love company brands a differentiators have values. but We digital platform shared design, and not of only the of our competitive lead with

opportunities strategic BXB, the we global, have emerging for brands through have disrupt. growth to initiatives like where and identified opportunity We

experienced a have an and growth who control service new cost, drive deliver opportunities. customer of and culture increase knows We how to innovation team efficiency, world-class operational

our with shareholders. discipline we that confident and to and our will And compelling continue restoring along on our finally, deliver with world-class we commitment our products, and are customers, customer to team, focus on our financial our service our great employees,

I'd All to whom support. for their of like thank

Now I to will turn Jeff. over it

morning, Thank Laura, and you, everyone. good

Laura challenging said, solid proud that in a earnings environment. As we're delivered we've quarter of

industry from and On innovation. line, to distinguish and of furnishings design, the in-house stable culture top proprietary ourselves the we strength our the through our brands family continue of strong of home our

our the despite profitability, operating margin XX% our margin operating of in and for. operating structural our line top support On how demonstrates bottom the changes long-term the resiliency line, our results illustrates model softer

year Before fiscal adjustments. guidance, our I walk our through non-GAAP on first our I'll touch QX and results, ‘XX

operations. market As continue the our newest the brands, propel through innovation good family that our of distinguish GreenRow. to And innovation Laura will Laura of brands continue gains. across said, our ourselves touched we member on to share and

efficiency to across On the all our we operation driving operations. side, committed are

commitment, this that to million three efficiency we $XX resulted in of part key non-GAAP As our QX expenses. recording in in undertook drive initiatives

we non-customer primarily corporate on positions. domestically in internationally, facing reduction force, our and team completed company-wide a focused First, rightsizing

California, manufacturing from we lower facility, moving upholstery U.S. our our Second, production closed cost to West facilities. Southeastern Sutter Coast our

we aperture SaaS Third, exit our business. non-core

supply will Combined, across not also $XX efficiency result and increased but an in annualized corporate, technology focus estimated teams. chain these changes million, and savings only our

details, more to non-GAAP please to For press GAAP in refer the our release. schedule

into let's our Now results. dive QX

our expectations. pre-pandemic helpful compare in so, revenues billion, do reference I $X.XXX levels. to our came performance XXXX, in addition with slightly to As as it's at Net I'll year-over-year below results,

one-year While XX.X%. and full-year X.X% came stack negative two-year stack revenue on growth grew X% our brand in comparable the against XXXX at stack our grew

to up one-year come demand, demand our negative QX toughest at one-year a In we're compares XX% on the against to in stack. year, leading

However, a stack. stack was X% two-year XX.X% our on positive on the demand four-year and negative

of net Our timing we were QX and less revenue fulfillment in order QX. driven had orders in as recognition revenues undelivered strong by than

environment, comps. normalized a a spread in net is between context, For typically and there demand

and of inefficiencies our year the we've down margin several supply costs in short-term quarters. basis line statement was discussing impact income that Moving statement, the chain flowing past at gross XX.X% in points expectations. with the Coming income reflects below through XXX last our the been

of higher site costs, products the as partially capitalized wide ocean This proprietary from margins statement. our the and we freight, from offset our experienced emerge last was cost our pricing year the by income forego detention, decreased promotions. full into Merchandise command to effect ongoing and by power higher commitment product

by Selling margin outbound impacted shipping higher continue well. to as costs be customer

We continue to And our some shipping service. incur to rebalance multiple multiunit out inventory these We're serve centers. regional been have would in in higher best typically from and for shipment. to inventory composition our to distribution which our cases, orders, hard working market improve by customer a customers times costs of shipping single fulfilled location

basis XXXX. will of more continue in costs Altogether, are customer XX.X% of selling than discussed. on, XXX last XXX short-term margin improve QX As XXX service these points seeing we supply lower that's margins we inefficiencies inefficiencies. inclusive points the service XXX these related expect were attributable remains and and absorbing our over higher I are and We supply gross costs XX.X% and Laura touched than we than the basis of course year. points At the to our estimate customer points than to basis in XXX already XXXX chain with more pleased chain are basis improvements just

of to above XX.X% $XXX costs net increasing basis XXX Occupancy points dollars With at occupancy million. last were revenues year. approximately X.X%

distribution and both centers distribution offset East our time. Coast. retail efficiencies from time long-term customers, West our new partially service cost store for over costs centers support initiative ongoing These drive on improve our Our will optimization and incremental new growth, the

leverage impact optimization points rate margin. basis retail XXX demonstrates our occupancy has on our Our versus XX% and XXXXs the gross e-com higher had mix,

year. Our with costs XX.X% challenging be costs last a we our discipline control for at as to accordance leveraging reflects our financial SG&A rate and over revenues held line of to a XXX in rate as employment continues low year last basis to points QX expenses top environment. at We variable ability trends. historic flat employment a manage in This

continues advertising the proficiency to agile team. marketing of leverage performance Our our reflect driven

to near capabilities, us business. first-party are as advantage that and underappreciated allow in-house drive platform competitive in trends advertising in time the an data Our we real efficient evolve multi-brand see spend

margin well marked optimization underpinned and XXX income basis cost of XX.X% X%. An macroeconomic above short-term again profitability. guidance. XXX chain the stands mix e-com SG&A the rate Overall, declining pressures. over year, quarter than XXXXs reflect our impact of durability estimate macroeconomic XXX supply bottom XX.X% line, top in the SG&A basis below are a margin results on came points XXX These in backdrop. points down headwinds, long-term XX.X%. our last points XX% by our related lower results, profitability and at $XXX in at significant our With operating softer to basis line pleased This we once of basis million points XXXXs higher and highlights QX results, regard and came quarter's operating retail with despite the operating

of Our first above $X.XX below diluted per last quarter earnings share record XX% per $X.XX but share earnings or of was $X.XX. share XXXXs of per significantly earnings $X.XX, year's

or in balance long-term the with $XX quarterly maximizing million This debt million a to $XX balance outstanding our of value. opportunistically sheet, growth, we ended with million expenditures quarter and capital inclusive with X.X% in On the shares our $XXX of supporting million shareholder is paying congruent no repurchasing investing cash $XXX outstanding. commitment dividends, of

increase to chain related to inventory year-over-year, increased disruption, turnover, how during XXXX over hand hand an growth year. inventory base creating as low revenue inventory apples-to-apples and which here last to were important inventories, continues include XX% by on skewed $X.XXX increased our pandemic improved hand comparison versus artificially supply year's levels time. while emphasize again: essentially highlights XX% XX% in billion on against points only last we've on of be that have first, Two at inventory our once transit flat Merchandise inventory, over our

sheet XX% growth our balance lower transit. in merchandising reflected Second, reduction inventory

Summing the on results outlook. trends our our expectations. are given macroeconomic have As with order pleased forward-looking to QX QX, in our our demand we've and line aligned up future delivered cautious with we

furnishings distinguish to within ourselves home continue industry. We the fragmented

resiliency our at a XX% operating to delivering least demonstrates thank work challenging operating and to in I all the Our over the maintain our margin our their in hard profitability, associates of ability want dedication long-term. margin these results for environment. and a

Now let's our XXXX. guidance to turn for

guidance. but cautious, the fiscal estimate of based there facts uncertainty we the balance is the to our is look increasingly our ‘XX becoming reiterating recognize are in best the on this and macro we As we today. trends the and is We consumer know year,

line, ‘XX range. within our and four-year trends revenues two the guidance lands full-year our On to extrapolating in top QX us

QX of full-year Specifically, two-year the guidance. low-end at our trend yields revenues

trend revenues high-end our full-year the midpoint yields full-year While guidance. of and between QX

project guidance, reductions our bottom On our the line, our results within the we quarter. this QX landing undertook especially operating with cost margin

We continue first-half be materially of the anticipate will tougher. year to the

and line, demand negative coupled declining order last On our the with comparisons high the back year's top year-over-year will comps. yield macro fill,

On pressures incremental amortize supply foresee our to well as the as to costs costs the gross sitting into income continue balance shipping to line, as margin we sheet statement, customers. continue our service bottom ongoing our chain on

into year, In headwinds the turn should half back these tailwinds. of the

margin pressures As comparisons our become support our easier our get top line year-over-year tailwinds and gross profitability. that

we of a line drive confident continue operating top believe we fundamentals to long-term in We remain As high-single-digit will look beyond algorithm XX%. the to exceeding our with X% or business. our growth XXXX, long-term growth mid margins

profitable outperform to first, world's retailer, the finishing confident reasons. everywhere, design customers deliver to led, that we're our for these largest we're our digital peers committed continue home growth sustainable As and we'll and

proprietary The competitive in and advantage furnishings not ongoing sheet. balance fractured first, digital home the the growth industry. but digital of design, initiatives our only in-house of of The of our Our the to our strategy. channel market strength ability strength our share gain fortress resiliency

for open With call the questions. I'll that,

of go Instructions] [Operator And ahead. Cristina Telsey Group. Fernandez Please Advisory with

Hi. it's price you conveying the amount consumer customer Good this expand demand morning. wanted good still you in on, if gave I to and to a the value are I on the but you could environment? selling how of color, full focused see mean,

Christina. Thanks,

choppiness it's year know, across, we've Labor you seen know, categories. brands, demand our where last been You since Day in channels,

job rates, the housing know, the make no it of more [Technical it's You because cautious. wonder does higher Difficulty] loss, customer

and However, wide our we it and price to kitchen the business, seeing that competition. points, better is of and brands, customer across range strength allows omni in a And portfolio platform, our of positioning and product business. clear are are our our still quite while of is our our us softness customers than a can compete serve categories, aesthetics. spending also high-end seeing furniture electrics our we lot We in

are know, Customers the Beyond, wedding so areas going whether opportunity. out And there shifting of business and serve, more the that but our like our pick they that dorm be There's home, us, we lot registry focus, easy even updates in market or recent for The we are where there's that gives marketing. us in focus scale to are are gifts. about Bed baby out are a it wonderful really now large see going be opportunity their for a of exaggerated up to interested share. they news retailers entertaining you Bath home. some at buying and and areas health. particularly They at They of are are cooking

we seeing areas. subdued are some So

ability they is And We things are also them are that really the looking unique. that important at full their making to purchase. see gives large for without which very that to price so home, that they that update buying them, the scale are

guidance if allow environment about merchandising maintain guess, then to, Difficulty] gains guidance year, would as you you the or revenue a same, thinking [Technical from initiatives the that share you market follow-up for stays how Bed range brand you specific either today. commented to know, the the are And hit I on the she Bath you

to our talk approach I'm guidance going start by to about letting Jeff the range.

you, Laura. Thank

cautious. increasingly recognize the uncertainty there's still consumers becoming macro we the and So that in

going four-year top in As remarks, demand trends the to range. after tailwinds. us year prepared I decelerate But story. how tougher, we're in last more QX, the And demand two we Labor a back said we've especially that's started our comps be extrapolate up higher different within about And on of if and now lot against materially line, it's right year fill. the is back our in of lands it our the my last to Where talked become our Day. order the guidance really headwinds year's where half, some should first-half a

us to It's the Bath Bath Bed we and things On like our and where of clear gain gaining area Beyond, volume share. the continue share that's respect we're we to to market Beyond an believe progress. Bed

brand up were customers picking in their Baby, example, decorating and registry, For be there nurseries from they're and want buybuy will were months. and Williams-Sonoma still know store kids up and certainty share kitchen in the those from share the picking electrics buying a when few that

will brands. design, teen, season. and in we to we that gain anticipate furnishings as this share industry digital line stable not to position and with channel hit well in-house back strong we're is the in ramp an school fractured strategy, dorm to positioned portfolio early of our our seeing only digital we're our in but Bottom first, benefit -- home market we think And

Thank you.

Thanks, Christina.

line will Your Rakhlenko from come Max the next with Please ahead. Cowen. question go TD of

lot. right. a All Thanks Great.

think So think giving you're demand comps the especially, the for breathing first, is reiterated was you staying of I do you also then just much down how in and that BXB on second-half top room for line, softening? XX% yourself XQ guidance year said

we our us and lands when trends in question the Good that my four-year in prepared spoke extrapolate two morning, range. QX, squarely pretty Max. last -- like in We I to in the remarks, guidance

Bath in balance the pressures, high-end that, guidance, Beyond, happening been range be, end, in of opportunities so two-year there's very looking have is about at think market low QX, to like in sheet share. with brand, to gain our & you current the don't landed consistent see smaller the midpoint we players at combined what's very over QX if Bed the exiting the of the that of so trend some specifically, have we could and And opportunity people which our trend, us has between what who but land Some for market four-year with the withstand

Got it.

speak enough. and And they can then Fair XQ in we how there? the you then specifically product for And gross just drivers look in remainder last to year? cadence Okay. back margins how to think this you the continuing get key much pre-pandemic of how about year And the of versus year. compared of margin you of year, next last into can year the that some pressure second-half do from that think should

Yes.

we it think look margins at you merch it, all XXX basis a we separate margin selling lower from costs. don't out at margins. down together, I points But take product break driven our by if look higher and selling if were shipping margins

ocean impact it our of been the tension to selling on from I've the sheet on the and the full for through that incurred And margins, now reflect reflect merch product cost quarters, we've shipping are customers multiple costs, capitalized additional costs flowing we've our income statement. about the our talking margins as balance several items to freight, continues higher enumerated. As demerge

costs margin, in gross points our for accounted points we really margin. in talking the as XXX about in keep basis well the in the over it headwinds back about XXX terms we decline quantified When it's of what incremental We and short-term selling tailwinds. think as our basis call of half, that altogether, terms these of

guiding we this back a So, become main a half the have the half ‘XX. in see back ‘XX that the into of cost that been the in half, headwind. to we But -- we we've will that point near-term as are and tailwind is look back pressures

maybe look, And then last versus levels? it. just curious both how promos, then year Got more on and specifically pre-pandemic those

to that on our have I'd to Day Memorial overstocks say, current are We take inventory you're We year. that, as our reduce running little a quarterly site-wide see our we as maintaining promos where down do our to. much promotion marking And we where only bit keep too possible. us are continue comped going running this to markdowns need and we in inventory. stance and clean we're not and things just

Thanks Best great. lot. Okay, a regards.

Thanks.

will Stanley. with from next Instructions] go Simeon the Please [Operator of Your Morgan line question come Gutman ahead.

morning, to above consumer in number it a talk et the how Hi, we you XX% could a I protecting much to you'll Can that Jeff. XX%. half you long-term the to back ranges? Good and know XX% about this efficiency, see everyone. and wanted dip guidance. weaker return the ask the below first Laura. of that Hi, of especially longer-term Are cetera? see on then I we path cost year? about protect the continue said Or through through intent back if some the

morning, for Good Simeon, you thank the question.

You about know, I love talking operating margin.

take in advertising our there. SG&A coming on which can cost and very managing SG&A expenses, focused see we a you ‘XX terms at our And employment XX%. our you flex where costs, the it's to with We from QX, which leveraged look sales drive of -- our leverage are we are we control, very fiscal managing leverage, at XX% confident in for if year to our guidance in can

we're hit to basis adds top and XX% which of took ‘XX, costs half we million XX XX%. be in basis supply about to short-term to the of think points, then that to basis our actually the we room restructuring $XX XX charges we've on add basis confidence say, to XXX gives portion a year I year the we've which That the of hit if fiscal of headed, that, another, XX% And And back points and the attribute and lot to only of in throw able of selling quantified efficiencies chain been us opportunity to. that the hit XX% we to the a XXX to guidance. margin lot a should decline of talking annualized points where QX, points QX, in small that which year-over-year,

XX% especially how is change confident we at there, fiscal So that optimization margin look our strategy. you operating think can XX% structural everyone to in blocks, of to And take think and mix results versus SG&A guidance of longer when the for evidence see a our ’XX. and feel leverage, that's our XX% building XXXX, occupancy the provide so because get bottom we QX the we our retail higher we e-com and year our term floor, line

allowed -- frame if talk a sneak think in quantify help to it you you last at the think, I all? you And did I'm and year about backlog quarter, helped you I follow-up, us. us for can

Yes.

is call, it's backlog, It's of the we factor results. much point, said necessarily as been normalized. so this is XXXX the backlog not terms our or our factor a on terms in it's backlog not a ’XX, pretty -- normalized. At in QX the In of we like

next will with of from Grom Please ahead. line question go Haskett. Chuck Gordon come Your the

you're a the control. can Hey, in category on what side, thanks. morning. I the than Good the higher rebased But curious really much doesn't Clearly, that you the I'm gives to home job XXXX? reverts. continue just itself category SG&A mean what is you doing great confidence And controlling guess

issues ‘XX or some So persist? maybe ‘XX, of when we get even into, say, these sales

Chuck. Thanks,

company very and is thing owns and I to the very much large fractured remember no category is share. think first one the that

The spending. XX%. little ours reality is are companies on It's gotten housing talked counting that of still to is that we're purchase And down Customers the I homes. their but that. last continue how phases. in the They certainly share not to year, was to will XX% a it's positioned last, they better, win. take love like so bit cycle you When now down

for their than been for lot opportunities in home mostly them that's And remodel are these their a for people customers, home right? group a home a for are lot year, over there's of decorate. all have in in update a been Some in home their but three our And large years, of XX-years. their more for

We You don't redo shop other we to come us, whole things. so have to pillows. because just house the sell with many sell

for. We looking have you're that those frames brad for all gifts

of giving, babies, pieces are embedded showing stages business. beautiful you We all gift the table they're are and life real scapes, our the those

they love everything homes. think cautious still their and house whether question on now that us And it. -- There's in And so to we right many still. big of you just coming have where of to new bedding just Barn. products it's to or that our mind people no very it's in they're in it the not it's see And everyone's about said a I I buy -- movement And some buy LoveShackFancy we are they're new before, ticket. as the newness, so shopping, to can Pottery categories buy

We so at good they're regular exclusive. that that we're that's purchase newness They fashion have purchasing at, price. high and definitely

demand Jeff, helpful. and I Okay. on Thanks, the guess two Great, four-year the And are clearly, the guidance. for then would correct, curious mean, on stacks the I But just comp. within math you and that's Laura. I'm your be

comments cautious. at comp as we of into about changed the becoming that consumer and months trend all in increasingly the progressed demand throughout Your the If May? line couple past

So our two-year on They -- and demand remained did trends did. one consistent. the have they

It's really choppy.

full-year remarkably decelerate was Yes. consistent. But QX, the across and two-year but the one did

I these call. on at the we as the forward, side the look both demand that in given, side, and trends net guidance we outlined supports feel it we extrapolate and our So we've when them

Your will Loop go Capital question ahead. Chukumba come Please Anthony next the of from line with Markets.

Good morning. taking my question. for Thanks

way once a lot how but there? GreenRow. of GreenRow. looks dream super, had obviously, I the Thanks Obviously, of It early, like terms love some like you positioning it's brand a opportunity of early, long-term the And the it's the to Heirloom again, it's question But like just think thinking about next of in just about perspectives you It launched about dream in but week, more furniture. would get traditional super Just sort terms looks are super furniture. that?

proud Anthony. we've what for and GreenRow. bringing excited very on up, that of Thank done We're you

very our that on as are beginning sustainability We of across but really one brand a doing. with approached was the the that it primary we're all that brands, focused we of from thought we things time

really differentiated able beautiful that we so and in the And is market. are but we all to both to that also know use completely an build assortment sustainable,

products, Many neutral, products. think times, when about you think very sustainable about you basic

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our different there brands. come our aesthetic white We're space, many best today. internally of always the of of we've business terms like in we brands. at started more music good Most say I'd is sellers brands, just out and them. types as than opportunities so been for knew was that definitely And And that other there there's starting -- songs feminine are and new new

significant while, And a it and Williams-Sonoma, very an so innovation while for is be of going it's to at optimistic, we're example Inc. it's small,

Got then it. quick related That's And a follow-up. helpful.

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they a up. but may they falling good was have keep can't so behind. years couple that or product an And idea a of had very ago, They're

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jump I competitors pressures us marketplace and just fortress advantage enable is a many come our will think were small sheet would this that that under I Yes. to where not. come in say balance withstand the these us in is for pressure, these some of potentially competitive going -- to

up share as to we'll market into they run just continue And pick so trouble.

Your next ISI. question Please will come from the line of Oliver Evercore Wintermantel ahead. go with

guys. thanks regarding question had BXB. I Yes, a

drove you And have the said down, digits? quarter, it you think, in a must that I the lot up mid-double-digits. Can the then X%. X% obviously, What mid-double been contract up trading then there? but explain worse down Laura, difference than was was

that we're seen very brand in including This you. Thank success history growth about, driving project standard and continued Yes. for programs. it our and we've large to continues excited was an annuity be area our largest to-date quarter

Our trajectory, the commercial along business use, sector. multi-residential engagement from an in has contract accelerated most mixed with maintained quarter this hospitality, notably increased growth

softened want really over we building Although in maintaining are volume last months, the for to project continue we few while signs starting very share to see is designer pipeline, our our and business, trade strong focus we we to has a the business are the back compete and confident in increase of future. over ability business, the penetration contract take this growing on where very, which to our

you to want Jeff, do add what to anything I…

Yes.

it's think helpful last of with the in always wins some to our I dimensionalize notable quarter.

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there, as follow-up, sounds hear but nicely, And I commentary continue when the just contract, a to then it your that -- on should recover. the trade should mid-double-digit, grow it it. like Got

So words, of year, improve that year? should we to should we the see throughout the -- negative the for rest in other X%

but to And And throughout expect BXB Thank it's across you, annual We don't will you, aid all we our our quarters, throughout. guidance. the all specifically it's quarter. thank guide contemplated in to comps baked continue BXB in Laura. the do

Barclays. line the of come will from ahead. question Seth with Please Sigman next go Your

everybody. of morning. shape Hey, Good demand. to the I follow-up wanted on

stabilization. just was was there that comment, step But I QX QX, on seeing like that? wanted confirm, So it down clearly in late maybe I even clarify that you're an within or a a some to earlier don't could based know sounds maybe but comment QX you QX. if

in Maybe the of the for part respect of to into those, you you more second question, elaborate the operational just I specific on the some think have accuracy, maybe of improving are rebalancing about embedded year. concessions. delivery sales you then And could outlook drivers you've with that the the reducing visibility thinking inventory, that it's where of some some about

sales built outlook. I think those you've some the of into

So those where for important with And are today? how are we those the outlook?

then It's and some Laura, Jeff I'll Sure. detail. more let add

choppiness said, Labor I since we've as seen Day. So

brand we when of the our of part opportunities and the QX. And guidance opportunities year the important. even two And that of things four- run than then at a is by extremely a get all our choppiness. fact consistency there's the in of lot the And to into just our consideration we take bigger we and years, and look the balance mix we So other biggest are Williams-Sonoma the that other there's when lot the customer service. range. And a short-term. Jeff, But in of is one sales becomes

us. very The and cost so we credibility already customers. a hard with working are have improve very of getting significant of of money is been a this to where who time us was that part to in return we to which been And to was tell which had seeing things you on-time during were Products and key our a a lot service time, and lot pleased chain I'm has that pandemic satisfaction. And -- always supply key they late. late tenet repeatedly why a We customers customer disrupted. levels to come improvements world-class we of customers are that our service, our delivery, and tell weren't

cost that lapping what improve through operating is just from to service the that are areas profit will we're is our a costs also haven't Customer where But wastes, see high last were natural the that because improvement quantified -- year. so we some the embedded driver, all we're margin. of went going Jeff

for top the you're subdued, while, suffer. is long-term one strongest ensure deliver And see have to So and be business we over the profitable build opportunity others in time, of going believe, industry. the that very line while really yes, us the we to I players, a

that's helpful. So then -- really

that's have the So the right? only in the I so line sensitivity that still pressure, margins and not based here in sales can but would right? some under while those guess, financial matters, one the laid out of much flex you much you top on lower And around EPS is here? just be model, follow-up Obviously, drivers? achieving that How thing how built potentially

I think question. Jeff has already answered that

disciplined. know I think saw most is And margin QX. -- us sales because lower higher very us I we've saw with, than that in you think, always than deliver been showed, a expected you and I people's operating model

out our positioning We doing downturn to the we and also about more stronger. us platform others. a while. through our We omni costs efficiencies went and aggressive finding flex are allows for cutting but been this and We've came than

our record versus that me confident, would are that shows to just more produce if you I you I'm is our track tell even able we saying top so the record track And subdued. line

line of Please Anna go the will from Your next ahead. with come Andreeva question Needham.

Great. ones like that it's out Thank quick you've said. so volatile there, in from and mind much keeping Two guys. morning, good you, us,

if you seeing out mentioned think for the Just second curious you demand Memorial you planned still year's to what are events? seeing you're with are Can I last on come promos the in levels. the talk consumer far so Day similar quarter? being

I in of some already it then secondly, the the affected quarter. P&L think cost on in you $XX the reduction And million said first

should how the on think go through savings those about we any we color as Just year?

versus after more were we QX, Yes. really talked of we quarter, early along Thank in when here the the about we're in you. further We're -- in quarter. weeks couple

anything I than pandemic did So into in least later a bought be curve seems the seeing people softer I of at did quarter. outdoor earlier. into weeks we're read and furniture it a comment the about where couple wouldn't to I wouldn't mention -- it make sales any in following obviously

giving, decorating business. business, seeing are in We gift textile strength our kitchen

in remarks. all so And covered my were those prepared

strategy as And us business. the gift also is to assortment the we're when fall opportunity think West think on build for also we Elm, in giving was more those with you the the to that back do marketing, I of holiday about do both categories, season will strength to more newness really that's a customer, going in see we in but the year, continue good to in strengths, add and think half and about that the where more we're modern this which in those that seeing some because entertaining

million domestically And your measures into timing, actually respect question of that booked portion internationally. And to in of the quarter, Anna, very on $XX QX. million the in and a because only savings, in across both $XX the our cost-cutting happened small phases

quarters. So savings the majority over the three of next be recognized that will

but confidence that guidance, us in to gave op factored is for into additional margin of range gives guidance So it we XX% XX% the our XXXX.

over call I this the to for management back will At closing time, hand remarks.

you I wish best all thank and the I really over all all appreciate summer. joining Well, the for you great questions, the us.

Looking you forward to soon. to talking

today's all meeting. That for conclude will Thank you joining.

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