High-end housewares retailer
Wednesday reported a 55% jump in second-quarter earnings while holding to future earnings guidance because of "ongoing uncertainty in the macroeconomic and geopolitical environments."
The San Francisco-based company posted net income of $27.6 million, or 23 per cents a share, vs. $17.8 million, or 15 cents a share, in the year-ago period. Revenue increased 18.8% to $689.6 million in the 13-week quarter ended Aug. 1. Analysts expected the company to earn 19 cents a share, according to Thomson First Call.
Same-store sales rose 5% vs. 6.5% a year ago. The Pottery Barn unit showed the best sales growth with a 10.2% gain, while the company's eponymous chain of stores managed just a 1.6% increase.
"While the strength of our brands -- and our proven track record in driving our business in difficult economic times -- provide us with a high level of confidence in our ability to execute against these initiatives, our outlook for the balance of 2004 remains conservative due to the ongoing uncertainty in the macroeconomic and geopolitical environments," the company said in a statement.
In terms of guidance, the company held to previous EPS forecast, but slightly raised its revenue expectations.
Williams-Sonoma reiterated EPS guidance of 21 cents to 23 cents a share in the third quarter and 95 cents to 99 cents in the fourth quarter. The consensus estimates are 23 cents and 97 cents, respectively.
Nevertheless, the retailer forecast third-quarterrevenue in the range of $719 million to $735 million, vs. previous guidance of $709 million to $725 million. Same-store sales growth is projected at 2% to 4%, unchanged from previous guidance.
For the full-year, revenue is expected to hit $3.16 billion to $3.21 billion, vs. previous guidance of $3.13 billion to $3.19 billion -- about 15% to 16.5% higher than the previous year. Same-store sales growth is projected in the range of 3.5% to 4.5%, compared to previous guidance of 2.5% to 4.0%.
The consensus revenue forecast of analysts are for $717.7 million and $3.16 billion, respectively.
Shares closed at $31.50 Tuesday.