Williams-Sonoma Posts Third-Quarter Loss

SAN FRANCISCO -- Williams-Sonoma (WSM Quote) reported a fiscal third-quarter loss Thursday, as declining same-store sales and weakness across its brands dragged on results.

The home-decor retailer posted a loss of $11 million, or 10 cents per share, compared with a profit of $27.1 million, or 25 cents per share, a year earlier.

Sales for the period ended Nov. 2 dropped to $752.1 million, off 16% from $895.1 million in the previous year.

Analysts surveyed by Thomson Reuters expected a loss of 12 cents per share on revenue of $746.8 million. Analysts' estimates typically exclude one-time items.

Retail revenue slipped to $424.4 million from $494.3 million on weaker results from Pottery Barn, Pottery Barn Kids, Williams-Sonoma and the Williams-Sonoma Home brands.

Direct-to-customer revenue, which contains catalog and Internet sales, declined to $327.7 million from $400.9 million.

Third-quarter same-store sales sagged 21.4%.

Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

The company also raised its fiscal 2008 earnings forecast slightly while maintaining its fourth-quarter outlook.