Specialists see revenues rise
Janice Chamberlain -- Furniture Today, May 29, 2005
San francisco — Specialty retailer Williams-Sonoma here posted first-quarter revenue gains of 12.4%, while Cost Plus World Market, another specialty chain based in Oakland, Calif., recorded a 7.7% first-quarter revenue increase.
Williams-Sonoma, parent of Pottery Barn and Pottery Barn Kids, reported revenues of $720.7 million for the quarter ended May 1, compared with $640.9 million in the comparable 2004 period. Net income in the latest period was $26.2 million,surging 22.4% over year-earlier profits of $21.4 million.
Pottery Barn is No. 11 on Furniture|Today's listing of the Top 100 U.S. Furniture Stores.
Quarterly overall same-store sales for Williams-Sonoma increased 5%, on top of a 6.8% increase a year ago. Pottery Barn same-store sales were up 6.1% in the latest quarter, and Pottery Barn Kids saw same-store sales jump 10% in the quarter.
Looking ahead, Williams-Sonoma expects second-quarter revenues to be in the range of $774 million to $790 million, versus previous guidance in the range of $782 million to $798 million. This represents a projected revenue increase of 12.2% to 14.6% versus revenues of $689.6 million in the second quarter of 2004.
Williams-Sonoma projects same-store growth in a range of 1.5% to 3.5% for 2005's second quarter. This compares with same-store sales growth of 5% in the comparable 2004 period.
Cost Plus World Market posted sales of $200 million in the quarter ended April 30, up from $185.7 million in the comparable 2004 period. Cost Plus, No. 22 on Furniture| Today's list of Top 100 stores, recorded a net loss of $138,000 in the latest quarter, compared with net profits of $3.2 million in the year-earlier period.
The net loss included pretax charges totaling $3.1 million related to the departure of the company's former CEO and the closure of four stores.
Same-store sales decreased 1.9% in the latest quarter, compared with a 3.4% increase for the first fiscal quarter of 2004.
During the latest quarter, Cost Plus opened five stores and closed four, as planned. In its current quarter, Cost Plus expects to open 10 stores, measured against nine stores opened in the second fiscal quarter of 2004.
Also in the current quarter, Cost Plus projects same-store sales will range from 1% down to 1% up, compared with a 3.2% increase for the same period last year. This same-store sales guidance is based on lower sales of outdoor dining furniture from cooler weather in certain key markets and from an oversupply of outdoor wooden dining products in the marketplace.
Cost Plus said it expects second-quarter sales between $202 million and $206 million, measured against $190 million in the comparable year-earlier period. It anticipates net income will be between $1.2 million and $2.3 million, versus $3.3 million in the year-ago quarter.
| Cost Plus World Market | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 4/30 | 2005 | (a)2004 | Change |
| (a) Restated. (b) Includes an $87,000 income tax benefit. | |||
| Sales | $200,023,000 | $185,703,000 | 7.7% |
| Operating income | 1,562,000 | 7,776,000 | (79.9%) |
| Net income | (b)(138,000) | 3,173,000 | — |
| Earnings per share | (0.01) | 0.14 | — |
| 13 weeks ended 5/1 | 2005 | 2004 | Change |
|---|---|---|---|
| Revenues | $720,688,000 | $640,910,000 | 12.4% |
| Operating income | 43,703,000 | 34,804,000 | 25.6% |
| Net income | 26,173,000 | 21,390,000 | 22.4% |
| Earnings per share | 0.22 | 0.18 | 22.2% |
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Specialists see revenues rise
Jun 3, 2005
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