Revenue during the quarter went up marginally by 1.08 percent to $1,245.38 million from $1,232.08 million in the previous year period. Gross margin for the quarter expanded 17 basis points over the previous year period to 36.79 percent. Total expenses were 91.17 percent of quarterly revenues, up from 91.02 percent for the same period last year. That has resulted in a contraction of 15 basis points in operating margin to 8.83 percent.

Operating income for the quarter was $109.98 million, compared with $110.68 million in the previous year period.

However, the adjusted operating income for the quarter was almost stable at $111.16 million when compared with the prior year period. At the same time, adjusted operating margin contracted 6 basis points in the quarter to 8.93 percent from 8.98 percent in the last year period.

Laura Alber, president and chief executive officer, commented: “Our third quarter performance demonstrates our competitive strengths ��" our differentiated portfolio of brands and profitable multi-channel business model ��" as well as the ongoing success of our strategic initiatives that we have seen this year. We saw continued double-digit growth in West Elm, our newer businesses Rejuvenation and Mark and Graham, and our international company-owned businesses. We also made additional progress across our supply chain and continued to reduce inventory, which resulted in better gross margins, allowing us to meet our earnings commitment at the high end of our guidance range, despite a more difficult retail environment.”

For the fourth-quarter, Williams Sonoma forecasts revenue to be in the range of $1,570 million to $1,650 million. Williams Sonoma forecasts revenue to be in the range of $5,070 million to $5,150 million for fiscal year 2016. For financial year 2016, the company forecasts adjusted operating income to grow in the range of 9.40 percent to 9.60 percent. The company expects diluted earnings per share to be in the range of $1.45 to $1.55 for the fourth-quarter. For fiscal year 2016, the company expects diluted earnings per share to be in the range of $3.35 to $3.45 on adjusted basis.

The company has spent $126.80 million cash to meet investing activities during the nine month period as against cash outgo of $135.53 million in the last year period.

The company has spent $111.24 million cash to carry out financing activities during the nine month period as against cash outgo of $108.57 million in the last year period.

Cash and cash equivalents stood at $75.38 million as on Oct. 30, 2016, up 4.31 percent or $3.12 million from $72.26 million on Nov. 01, 2015.

Debt comes down significantly
Williams Sonoma Inc has recorded a decline in total debt over the last one year. It stood at $125 million as on Oct. 30, 2016, down 37.50 percent or $75 million from $200 million on Nov. 01, 2015. Williams Sonoma has recorded a decline in short-term debt over the last one year. It stood at $125 million as on Oct. 30, 2016, down 37.50 percent or $75 million from $200 million on Nov. 01, 2015.