Williams-Sonoma Lowers Q4 GuidanceJanuary 13, 2012
The San Francisco-based parent company of Pottery Barn, West Elm, Pottery Barn Kids and PBteen revised its anticipated fourth-quarter 2011 earnings to $1.10-$1.15 per share from its previous guidance of $1.15-$1.20.
Net revenues for the 8-week holiday period ended Dec. 25 rose 4.2 percent to $901 million versus the 8-week period ended Dec. 26, 2010, including a comparable brand revenue increase of 4.9 percent, but President and CEO Laura Alber said the company was lowering its earnings guidance due to discounted pricing.
Williams-Sonoma still expects to record pre-tax operating profits and diluted earnings per share for the 2011 fiscal year. The company also announced that it is increasing its quarterly dividend by 29 percent to $0.22 per share for shareholders of record on Jan. 27, 2012; and is authorizing a new $225 million stock repurchase program.
"Our home furnishings brands had strong performance, particularly West Elm and Pottery Barn," Alber said. "Williams-Sonoma faced greater challenges on a year-over-year basis given the heavy market discounting on nationally branded products.
"In total, the strength of our merchandising strategies, operating model and execution continued to allow us to drive increased sales and profit on a year-over-year basis during the holiday selling period."