Williams-Sonoma reports profit of $7.33 million in third quarter

Total sales for retailer slide 3%

Furniture Today Staff -- Furniture Today, November 20, 2009

SAN FRANCISCO — Williams-Sonoma, the parent company of Pottery Barn and several other retail formats, reported a third-quarter profit of $7.33 million as sales slid 3%.

The profit for the quarter ended Nov. 1 reversed a net loss of nearly $11 million recorded in the same quarter last year.

"Throughout the quarter, we saw a progressively stronger-than-anticipated consumer response to our merchandise and marketing strategies, which resulted in significantly improved selling margins," said Howard Lester, chairman and CEO.

Third-quarter sales totaled $729.3 million, down from $752.1 million in last year's third quarter.

Same-store sales at the company's 204 Pottery Barn stores rose 7.6% in the quarter, but were off 10.6% for the first nine months of the fiscal year.

At the 93 Pottery Barn Kids stores, same-store sales fell 3.1% in the quarter and were off 16.8% for the first nine months.

The third-quarter profit, which equals 7 cents per share, compares with a net loss of $10.998 million, or 10 cents per share, in last year's third quarter. The year-ago figures included one-time charges of 19 cents per share for asset impairment, lease terminations and severance pay.

For the nine months ended Nov. 1, sales fell 14.4% to $2.01 billion.

The nine-month net loss totaled $11 million, or 10 cents per share. That compares with net income of $17.8 million, or 17 cents per share, in the same period in 2008.

Williams-Sonoma also increased its sales and earnings projections for the fiscal year. Sales are now forecast to be $2.98 billion to $3.04 billion - up from previous projections of $2.84 billion to $2.94 billion.

The company is now forecasting full-year earnings of 25 cents to 34 cents per share, including one-time charges.