NEW YORK (TheStreet) -- Shares of Williams-Sonoma (WSM) were falling in after-hours trading on Wednesday as the San Francisco-based home products retailer reported lower-than-expected 2016 revenues and cut its full-year earnings and revenue forecast.
After today's closing bell, Williams-Sonoma reported revenues of $1.16 billion, falling just short of Wall Street's projected $1.17 billion. The company posted in-line earnings of 58 cents per share.
For the 2015 second quarter, the company earned 58 cents per share and $1.13 billion in revenue.
Comparable-store sales growth for the 2016 second quarter came in at 0.6%.
Williams-Sonoma slashed its 2016 full-year earnings guidance to be in the range of $3.35 per share and $3.55 per share, compared to its previous forecast of $3.50 per share to $3.65 per share. Wall Street is looking for full-year earnings of $3.57 per share.
The company also lowered its full-year revenue forecast to between $5.075 billion and $5.225 billion, down from its prior estimate of $5.15 billion to $5.25 billion. Analysts are modeling revenues of $5.22 billion for 2016.
Comparable-store sales for 2016 are now projected to be in the range of 1% to 4% vs. 3% to 6%.
Williams-Sonoma CEO Laura Alber said the overall retail environment has "softened" and consumers have become more cautious, both of which affected the company's earnings this quarter.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate WILLIAMS-SONOMA INC as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: