Williams-Sonoma CEO talks mitigating tariff impact: 'We've been busy'
Williams-Sonoma CEO Laura Alber told CNBC's Jim Cramer how the company is dealing with the effects of President Donald Trump's tariff hikes.
"We've been busy," she said. "And we've also been reminded, you know, it's important to have that flexible mindset, but also to have options in sourcing, and particularly with our big programs, to have...different alternatives."
The home goods and furniture outfit owns several retail brands alongside its namesake, including Pottery Barn and West Elm. It posted quarterly results on Thursday, managing to beat on earnings and revenue. However, Williams-Sonoma missed analysts' gross margins estimates, and shares closed down 4.48%.
On the earnings call, management reiterated guidance "even with absorbing incremental costs from the existing tariff environment."
Alber told Cramer Williams-Sonoma is looking at how to do more manufacturing in the U.S., and she claimed that most of the outfit's upholstery is being made and assembled domestically. She also named the company's home improvement brand, Rejuvenation, as part of its strategy to boost domestic manufacturing. Rejuvenation is Williams-Sonoma's "fastest-growing small brand," Alber said, and its products are made in Oregon.
She also emphasized her company's progress over the past several years, adding that Williams-Sonoma indicated its operating margin would be flat this year despite global economic challenges. According to Alber, this speaks to "the power of our operating model, our multichannel platform and our sourcing structure," which affords the company flexibility and direct communication with vendors.
"I think you got to remember, too, from 2019 to today, we more than doubled our operating margin," she said. "And we, this year, are guided to basically flat to last year, with the tariffs in there."
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