US-based home retailer Williams-Sonoma has reported a total revenue of $1.75bn in the first quarter (Q1) of fiscal year (FY) 2023, down from $1.8bn in the corresponding period of FY22.

The retailer’s comparable brand revenue dropped by 6%, with a two-year comparable growth of 3.5%.

During the latest quarter ending 1 May 2023, Williams-Sonoma posted a gross margin of 38.5% or 38.6% as calculated on a non-generally accepted accounting principles basis, mainly because of higher inbound and outbound shipping and freight costs.

The retailer’s occupancy cost for Q1 FY23 was $203m, increasing 8.7% from the same period in FY22.

In the latest quarter, its operating income was $199m, decreasing from $323.4m in Q1 FY22. Its operating margin was 11.4%.

Williams-Sonoma recorded diluted earnings per share of $2.35 in Q1 FY23 against $3.50 a year ago.

Williams-Sonoma president and chief executive officer Laura Alber said: “Despite a challenging macro backdrop, we delivered another solid quarter of earnings. With our focus on compelling products, customer service and profitability, we achieved our financial expectations.

“We have a culture of innovation and an experienced team who knows how to increase operational efficiencies, control costs, deliver world-class customer service and drive new growth opportunities. We are confident that we will continue to deliver on our commitment to our customers, our employees and our shareholders.”

For 2023, the retailer expects its net revenue to grow from -3% to +3%. The operating margin is expected to be between 14% to 15%.

Williams-Sonoma also expects mid-to-high single-digit annual net revenue growth and operating margin to be above 15% in the long term.