W-S cuts forecast
By Larry Thomas -- Furniture Today, January 20, 2008
San Francisco — Retailer Williams-Sonoma, parent company of Pottery Barn and several other retail formats, cut sales and earnings estimates for the fourth quarter and its fiscal year following weaker-than-expected revenues during the holiday season.
The company, whose fiscal year ends Jan. 28, said total revenues for the nine weeks ended Dec. 30 rose 4.4% but comparable-store sales fell 0.4%.
As a result, fourth-quarter revenue is now projected to be $1.363 billion to $1.385 billion, down from previous estimates of $1.387 billion to $1.417 billion.
Fourth-quarter earnings are now projected at $1.11 to $1.14 per share. That's down from earlier projections of $1.19 to $1.25 per share.
"The macro environment did weaken and traffic slowed even further than we anticipated, particularly in our home furnishings businesses," said Howard Lester, chairman and CEO. "We are seeing continued weakness in January."
Fourth-quarter comparable-store sales are projected to be flat to a decline of 1.5%. Earlier, the company was projecting an increase of 0.5% to 2.5%.
For the 53-week fiscal year, revenues are now estimated at $3.933 billion to $3.955 billion, down from previous estimates of $3.957 billion to $3.987 billion. Comparable-store sales are projected to range from an increase of 0.3% to a decline of 0.3%.
Earnings per share are now projected at $1.72 to $1.75. That's down from earlier estimates of $1.81 to $1.87 per share.
The company said it expects to end the fiscal year with 601 retail stores, including 200 Pottery Barn locations, 94 Pottery Barn Kids stores and 255 Williams-Sonoma stores.
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