Williams-Sonoma, Inc. (NYSE:WSM) stock rose 2.96% (As on November 17, 11:35:09 AM UTC-4, Source: Google Finance) after the company reported its fiscal third quarter results, highlighting a mixed financial performance with earnings that exceeded analyst expectations but revenues that fell short of forecasts.

Pottery Barn ran a negative 16.6% comp in Q3, but ran a positive 3% on a 2-year basis and a positive 43% on a 4-year basis. The company have substantially reduced the promotional offerings in the brand and have successfully introduced new low- and mid-tier programs at great value. Earlier this week, the company had announced the launch of a new mobile shopping and design app for Pottery Barn following the success of the Pottery Barn Kids and Pottery Barn Teen apps. The Pottery Barn children’s business ran a negative 6.9% comp in Q3 and was negative 11.7% on a 2-year basis and positive 29% on a 4-year basis. West Elm is the brand that has been most impacted by the customer pullback in furniture. In Q3, West Elm ran a negative 22.4% and was negative 18.2% on a 2-year basis and ran a positive 26.1% on a 4-year basis. Despite current challenging dynamics, West Elm saw very strong reception to their new fall products, which marked a real evolution in the brand’s modern design voice. The Williams-Sonoma brand, which includes Williams-Sonoma Home, ran a negative 1.9% comp in Q3. Business-to-Business delivered a positive quarter, running positive 1.5% in Q3, driven by 30% growth in the contract business.

WSM in the third quarter of FY 23 has reported the adjusted earnings per share of $3.66, beating the analysts’ estimates for the adjusted earnings per share of $3.34, according to Zacks Investment Research. The company had reported the adjusted revenue to $1.85 billion in the third quarter of FY 23, missing the analysts’ estimates for revenue of $1.95 billion. The revenue growth in Q3 came in at negative 14.6% comp. The operating margin of 17.0%, attributed to reduced shipping and freight costs, a decrease in selling expenses by 11.1% to $507 million, supply chain improvements, and a strategy focused on full-price sales. There is A strong cash position with $699 million on hand and no outstanding borrowings, there is a significant 17.2% cut in merchandise inventories to $1.4 billion and an operating cash flow of $290 million for the quarter.