Modern home-furnishing chain West Elm, owned by Williams-Sonoma Inc.(WSM - Free Report) , announced the opening of its third store in Nevada at Downtown Summerlin, creating approximately 30 jobs. The 11,032 square-foot retail store will open on Oct 6.
This marks the fourth initiative by West Elm this quarter after the expansion into the boutique hotel business, Whole Foods’ product line and partnership with Sonos Home Audio System. This can be seen as Williams-Sonoma’s strategy to counter competition from industry peers like At Home Group Inc. (HOME - Free Report) , Haverty Furniture Companies Inc. (HVT - Free Report) and Fortune Brands Home & Security, Inc.(FBHS - Free Report)
Along with the store’s holiday assortment of modern furnishings and décor, products from eight Nevada-based makers and designers will be available. A complimentary design lab offering West Elm’s Style+Services will be there to support customers as well. The store will also offer custom-designed cash wrap designed by Nevada-based artist Zac Bryson of Wildwood Supply Co.
The Company has also taken up various promotional initiatives as part of the opening day celebrations, like offering limited edition tote bags to the first 300 shoppers, gift cards to local customers and an invitation to a private pre-opening celebration. Part of the pre-opening celebration proceeds will be given to a local non-profit organization.
Meanwhile, management is committed towards making a positive impact from supporting local artisans to expanding the job market.
It is very evident that William Sonoma is undertaking several initiatives to drive its top line in the near term. It has registered improvements across all of its supply chain and inventory initiatives in Q2, enabling it to cut costs and merchandise inventories.
Williams-Sonoma’s second-quarter fiscal 2016 adjusted earnings (excluding one-time items) of 58 cents per share were in line with the Zacks Consensus Estimate. The earnings figure was also within the company’s projected range of 54 cents to 60 cents and flat on a year-over-year basis.
Overall comparable brand revenues grew 0.6% in this quarter, courtesy of high sales at West Elm stores. Comparable brand revenues for West Elm increased 15.8% compared to the 15.7% rise in the prior-year quarter, buoyed by strong performance by its core furniture business.
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