Williams-Sonoma Sees Q2 Sales Decline
Second quarter sales at Williams-Sonoma, Inc., were down as the home specialty retailer reported revenue declines in three of its four divisions.
For the quarter ended July 28, company-wide sales were $1.8 billion down from revenue of $1.9 million in the comparable quarter the previous year. Net earnings in the quarter were $225.7 million, up from net earnings of $201.5 million in the same quarter the previous year. Diluted earnings per share were $1.74 vs. $1.57 in the second quarter of the prior fiscal year. Comparable store sales were down 3.3%.
“We are pleased with our operating results,” said Laura Alber, president and CEO of Williams-Sonoma, Inc. “Our revised outlook reflects our prudent view of the top line and the confidence we have in our profitability profile. We now expect full-year revenues to come in at a range of down 4.0% to down 1.5%, but we are raising our guidance on operating margin to be in the range of 17.4% to 17.8%. The reduction in our revenue outlook is offset by our raised operating margin guidance."
By division, comparable store sales at Pottery Barn were down 7.1%, down 4.8% at West Elm, down 0.8% at Williams Sonoma nameplate stores, and up 1.5% at Pottery Barn Kids and Teen.
