San Francisco – Stock readily available and accessible on the market at Williams-Sonoma Inc.’s nameplates isn’t maintaining tempo with demand, executives mentioned through the firm’s Q2 analyst name final week.
For the quarter ended Aug. 1, merchandise inventories, together with stock in transit, had been $1.71 billion, a rise of 12% over final 12 months. Though stock ranges have sequentially improved, they’re nonetheless not reaching the degrees the corporate had anticipated to see at this level, based on Julie Whalen, company EVP and CFO.
She cited the industry-wide container shortages popping out of Asia, manufacturing disruptions tied to Covid-19 surges in Vietnam and Indonesia and a current port closure in China as impediments to merchandise circulation.
“It’s onerous to foretell with certainty when these provide chain challenges might be totally resolved,” she added. “At this level, we anticipate back-orders to stay elevated, with moderated enhancements in our stock ranges by way of the stability of the 12 months.”
There are been some progress within the firm’s upholstery enterprise, she mentioned. Williams-Sonoma Inc. had beforehand been quoting a supply window of 100 days and is now right down to 80 days – and anticipating to once more slender the turnaround time.