Williams-Sonoma Inc. (WSM:US), the San Francisco-based seller of cookware and home furnishings, plunged 12 percent in late trading after its third-quarter forecast missed analysts’ estimates.
Earnings will be 58 cents to 63 cents a share in the period, the company said yesterday in a statement. Analysts had predicted 66 cents on average, according to data compiled by Bloomberg.
The forecast raised concerns that Williams-Sonoma isn’t coping with a broader retail slump as well as expected. The company’s same-store sales had exceeded projections in the first quarter, benefiting from a rising housing market. In the most recent period, they grew 5.7 percent, missing the Consensus Metrix estimate of 6.2 percent.
The stock fell as low as $65.54 yesterday in extended trading after closing at $74.89. The shares had gained almost 29 percent this year.
Williams-Sonoma isn’t the only retailer offering a disappointing outlook. Guess? Inc. (GES:US), the Los Angeles-based clothing chain, cut its annual profit forecast yesterday to $1.05 to $1.20 a share. That was down from as much as $1.60. The shares tumbled as much as 12 percent to $22.60 in late trading.
The company blamed slow traffic in North America and reliance on promotions to drive sales. That’s “continued to put our brick and mortar stores under pressure,” Guess Chief Executive Officer Paul Marciano said in a statement.
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