Williams-Sonoma Cautious on 2Q
June 4, 2007,
Citing a sluggish home furnishings environment, Williams-Sonoma lowered its second-quarter outlook — but affirmed its full-year expectations.
Consolidated results were modest in the first quarter. Sales rose 2.7% to $816.1 million. Excluding the Hold Everything chain (closed down last year), sales rose 5.2%.
On the bricks-and-mortar side, comps were off 0.8%. The only standout: the outlet segment saw comps up 9.3%
Diluted earnings per share were off 20% to 16 cents.
During the call, executives said several strategic changes are underway, particularly for Pottery Barn. PBKids will extend into apparel — including 1,000-square-foot stand-alone stores —and expand giftware. Pottery Barn Bed + Bath is expanding its merchandise assortment. Pottery Barn Outdoor catalog is broadening its circulation.
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