Q1 2010 Gross Margins = 41.4%, significantly improved from 33.7% in Q1 2009
Q1 2010 SG&A (Selling, General and Administrative) costs, as a percentage of sales = 28.5%, down from 31.8% in Q1 2009
Q1 2010 revenue = $1.09 billion, vs. Q1 2009 revenue of $1.00 billion
Q1 2010 EPS (earnings per share) = $0.86, vs. Q1 2009 EPS of $0.13

Not too shabby, considering the category Williams-Sonoma operates in (home décor) is tied to a still-sputtering housing market.  I would have expected a revenue decline, given the corresponding cost containment initiatives – regardless, in 2010, at least, profit growth wins the day.

If one were to use Williams-Sonoma as a model and adopt Chairman / CEO Howard Lester’s decisions for scratching and surviving in recessionary times, one would:

• Cut inventories
• Find every way possible to lower overhead costs (e.g., close underperforming stores, reduce non-essential staffing, eliminate travel budget)
• Put a vice grip on advertising costs – 2010 catalog circulation figures, for example, are projected to fall between 1-3%, compared to 2009 (Side note:  I wonder what that percentage would be if WSM reported the reduction of its print marketing budget?)

My advice?  Keep the double-dippers away from the salsa.