Williams-Sonoma 3Q income rises, but stock slips
SAN FRANCISCO (AP) — Home goods company Williams-Sonoma Inc. said Wednesday its net income rose 13 percent in the third quarter, but its shares slumped in aftermarket trading on a weak outlook.
Williams-Sonoma said sales from its West Elm business rose 13 percent, while revenue from Pottery Barn grew 11 percent and Pottery Barn Kids revenue increased 10 percent. Most of its growth came from more direct-to-consumer sales, but retail revenue also improved.
However the company forecast weaker-than-expected net income in the fourth quarter.
Net income totaled $48.9 million, or 49 cents per share, for the three months ended Oct. 28. A year earlier the company made $43.4 million, or 41 cents per share. Revenue rose 9 percent, to $944.6 million.
Analysts expected the company to report net income of 45 cents per share and $921.4 million in revenue, according to FactSet.
Williams-Sonoma expects to earn $1.21 to $1.28 per share on $1.36 billion to $1.4 billion in revenue in the fourth quarter. Analysts expected $1.33 per share and $1.4 billion, on average.
Shares of Williams-Sonoma fell 94 cents, 2 percent, to close at $45.11 on Wednesday. In aftermarket trading the stock lost 41 cents to $44.70. On Nov. 2 it hit an all-time high of $48.07.