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To: Frost Byte who wrote (62556)	3/17/1999 3:13:00 PM
From: kendall harmon	Respond to of 119973

WSM positive analyst comments. Williams-Sonoma Executive to Retire; Shares Plunge (Update3) (Adds stock activity, executives' ages and analyst comment.) San Francisco, March 17 (Bloomberg) -- Williams-Sonoma Inc. said Chief Administrative Officer Dennis Chantland, who helped turn around the cookware and pottery retailer, will retire. Its shares fell as much as 26 percent. ''He's a key man to lose,'' said analyst Ralph Jean of First Union Capital Markets Corp., who rates the company ''buy.'' The shares fell 7, or 19 percent, to 28 in midafternoon trading of 3 million, 13 times the three-month daily average. The shares earlier fell to 26 3/4, give the stock its biggest one-day percentage drop in nine years. The 56-year-old Chantland, who also acts as chief financial officer, was hired in November 1995 to improve operations and margins at its namesake cookware, Pottery Barn and other chains. Under his tenure, the stock jumped from 10 to a high of 40 3/4. ''This is the guy that's orchestrated change at Williams- Sonoma and that's what I'm concerned about,'' said Dan Kapusta, analyst at Banc One Investment, which owned 561,231 shares as of December. ''Not that it's a one-man show, but any time you have the orchestra leader leave it's a concern.'' The retailer's shares were also hurt as fiscal fourth- quarter earnings fell a penny shy of estimates, Kapusta said. Net income rose 28 percent to $43.9 million, or 75 cents a share, from $34.3 million, or 61 cents, a year earlier. It was expected to earn 76 cents, the average estimate of eight analysts polled by First Call Corp. for the quarter ended Jan. 31. ''The whisper was they would be in line with estimates. Now it's a penny below; people don't like to hear that,'' Kapusta said, adding the stock's drop creates a buying opportunity. Revenue rose 19 percent to $441.2 million from $370.4 million a year ago. Sales at stores open at least a year rose 6 percent. Executive's Exit The San Francisco-based retailer operates 298 stores and five mail-order catalogs under the names Williams-Sonoma, Pottery Barn, Hold Everything, Gardeners Eden and Chambers. Officials of Williams-Sonoma couldn't be reached to comment. Chantland, who will retire July 1, earlier held several management positions with discount- and department-store operator Dayton Hudson Corp. He's retiring to pursue personal interests, the company said. Chantland couldn't be immediately reached for comment. ''He really has done a great job getting costs under control and implementing programs to drive sales,'' said analyst Jason Klein at Blackford Securities, who rates the shares ''buy.'' Williams-Sonoma Chairman and Chief Executive W. Howard Lester said he's been working with Chantland on ensuring a smooth transition. Lester is 62. ''I know he has good people, but I personally do not know of the bench strength at Williams-Sonoma,'' Kapusta said. Company executives said during a conference call the retailer has starting searching for a full-time chief financial executive, said Alan Rifkin, a partner at Thomas Weisel Partners in San Francisco.