Williams-Sonoma Cuts Annual Guidance, Citing 'Cautious' Shopper
August 24 2016 - 6:00PM
Dow Jones News
Williams-Sonoma Inc. trimmed annual guidance Wednesday for sales
and profit with Chief Executive Laura Alber saying the home-goods
retailer was feeling the effects of "a more cautious consumer."
Comparable-brand sales at the Pottery Barn brand, the company's
largest by revenue, retreated 4.8% during the second quarter, while
profit also slipped. Comparable-brand revenue tracks same-store
sales and online sales.
Williams-Sonoma said it now expect annual adjusted earnings on a
per-share basis between $3.35 and $3.55, down from $3.50 to $3.65,
and revenue between $5.08 billion and $5.23 billion, down from
$5.15 billion to $5.25 billion.
Shares of the San Francisco company slipped 0.9% to $53.66 in
after-hours trading Wednesday.
For the current quarter, the company expects adjusted profit
between 75 cents and 80 cents a share on revenue in the range of
$1.24 billion to $1.29 billion. Analysts surveyed by Thomson
Reuters are a little more optimistic, projecting earnings of 81
cents a share on $1.29 billion in revenue.
Williams-Sonoma, which also owns the chain West Elm as well as
its eponymous brand, has struggled in recent quarters from
increased competition and a difficult macroeconomic
environment.
Total comparable-brand revenue growth was 0.6%, with flat sales
at Williams-Sonoma and a 15.8% jump at West Elm. Williams-Sonoma,
which began selling online in 1999, gets half of its sales from
e-commerce.
Over all, Williams-Sonoma earned $51.8 million, down from $53.7
million a year ago. Earnings on a per-share basis were flat at 58
cents. Revenue rose 2.8% to $1.16 billion.
Earnings excluding items were 58 cents a share.
Williams-Sonoma had projected adjusted earnings of 54 cents to
60 cents a share on revenue between $1.15 billion and $1.18
billion. Analysts surveyed by Thomson Reuters had expected adjusted
earnings of 58 cents a share on $1.17 billion in revenue.
The company projected comparable-brand revenue to remain flat or
climb as high as 4% in the third quarter, while pulling back
full-year guidance to 1% to 4%, from 3% to 6% previously.
Founded in 1956 by Chuck Williams in Sonoma, Calif., the company
has faced increased competition in a crowded sector from rivals
such as Restoration Hardware Holdings Inc. and Crate &
Barrel.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
August 24, 2016 18:45 ET (22:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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