Williams-Sonoma Stock Drops in After-Hours Trading on Q3 Sales Miss, Weak Guidance

Williams-Sonoma (WSM) fell 3.95% to $51.50 in after-hours trading on Thursday after the company posted revenue and comparable-store sales that missed analysts' forecasts and issued a downbeat outlook.

The San Francisco-based home goods retailer said revenue rose 1.1% to $1.25 billion year-over-year, but the figure fell short of analysts' estimates of $1.26 billion.

Comparable-store sales declined 0.4% during the quarter, while analysts surveyed by FactSet had expected an increase of 1.4%. Comparable-brand revenue dropped 4.6% at Pottery Barn and slid 10.9% at Pottery Barn teen, which offset 12% growth at West Elm.

Adjusted earnings of 79 cents per diluted share topped analysts' projections of 77 cents per share.

"Although the current environment is less certain, we remain focused on what we can control," CEO Laura Alber said in a statement.

For the fourth quarter, Williams-Sonoma sees earnings per share between $1.45 and $1.55 on revenue of $1.57 billion to $1.65 billion. Analysts are modeling earnings of $1.59 per share on revenue of $1.64 billion.

The company also revised its full-year earnings per share guidance to be between $3.35 and $3.45 on revenue of $5.070 billion to $5.150 billion. Previously, the retailer expected earnings per share in the range of $3.35 and $3.55 on revenue of $5.075 billion to $5.225 billion.

Wall Street is looking for earnings of $3.46 per share on revenue of $5.16 billion for 2016.

Additionally, Williams-Sonoma forecasts that comparable-store sales will grow between 1% and 2% in 2016 vs. its prior outlook for an increase of 1% to 4%.

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