Williams-Sonoma's 1Q revenues rise 10.2%
By Furniture Today Staff -- Furniture Today, June 12, 2006
San Francisco — Retailer Williams-Sonoma Inc., parent of Pottery Barn and several other chains, said revenues in its first quarter rose 10.2%, but net income fell more than 11% due to several one-time charges.
The company said the quarter featured double-digit revenue growth in catalog and Internet sales, and an increase of 9.2% in sales at its stores.
"We are extremely pleased with our performance in the first quarter," said Chairman Howard Lester. "However, we did see a greater level of volatility in consumer demand beginning in mid-April. As we enter the second quarter, we are doing so with a more cautious outlook."
Net sales for the quarter ended April 30 totaled $794.3 million, compared with $720.7 million in last year's first quarter. Net income came to $23.1 million, or 20 cents per share, in the latest quarter. That compares with $26.2 million, or 22 cents per share, in the first quarter of 2005.
The latest net income figure includes one-time charges for a pair of accounting changes, as well as expenses stemming from the closing of the company's eight-store Hold Everything chain. Without the charges, first-quarter net income would have been 26 cents per share, the company said.
Same-store sales rose 1.8% at Williams-Sonoma stores, 1.1% at Pottery Barn and 3.3% at Pottery Barn Kids. In the second quarter, the company is projecting same-store growth of 1.5% to 3.5%.
The company lowered its sales projections for the second quarter to $842 million to $856 million. Previously, the company had projected $858 million to $872 million in sales.
Williams-Sonoma ended the quarter with 253 Williams-Sonoma stores and 190 Pottery Barn locations. In addition, there were 91 Pottery Barn Kids stores, 14 West Elm stores, five Williams-Sonoma Home stores and 16 outlet stores.
The company said it expects to have a net gain of two Williams-Sonoma stores in the second quarter, but said there should be no change in the store counts for its other retail formats.
