Williams-Sonoma profit off; cites housing weakness
Thursday November 15, 7:58 am ET
NEW YORK (Reuters) - Upscale home furnishings retailer Williams-Sonoma Inc (NYSE:WSM - News) posted lower quarterly profit on Thursday, but beat analysts' expectations, as the weak U.S. housing market hurt sales of home goods.
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The company also said it was looking at the current quarter with "a heightened sense of caution" since it believed the overall weakness in the macro environment is having a greater impact on consumers.
Net income in the third quarter ended October 28 fell to $27.1 million, or 25 cents a share, from $29.1 million, or 25 cents a share, a year earlier. Analysts, on average, expected 24 cents a share, according to Reuters Estimates.
Quarterly sales rose 5 percent to $895.1 million.
The company said it was on track for fourth-quarter earnings of $1.20 to $1.26 per share and revenue of $1.387 billion to $1.417 billion. However, Chief Executive Howard Lester warned that earnings and sales could come in at the lower end of its forecast if the weak macro environment persists.
"We believe that the macro environment is weakening and that retail traffic is slower than we would have expected at this time in November," Lester said in a statement.
Analysts expect it to earn $1.22 in the quarter.
For the full year, the company raised the lower end of sales guidance slightly, forecasting net revenue of $3.957 billion to $3.987 billion after previously forecasting sales of $3.949 billion to $3.999 billion. Analysts expect $3.969 billion in sales.
The company also said same-store sales would be flat to up 1 percent for the year compared to its previous forecast of flat to up 1.5 percent. |
