Published August 28, 2013
Williams-Sonoma (WSM) lifted its full-year outlook and posted a 13% increase in its second-quarter profit, beating Wall Street estimates as a stronger housing market helped boost sales.
The results were released early and reported by several news outlets before trading of Williams-Sonoma shares was halted at 2:54 p.m. ET Wednesday. The company, which was due to report earnings after the bell, sent out a release just after 3 p.m. ET.
Shares were down 3.2% at $57.52 in late afternoon trading. As of Tuesday’s close, the stock had jumped 35.8%.
Williams-Sonoma, the parent company of its namesake stores, Pottery Barn and West Elm, said its profit was $48.9 million, or 49 cents a share, up from $43.4 million, or 43 cents a share, in the year-ago period.
Revenue jumped 12% to $982.2 million.
Analysts expected per-share earnings of 47 cents and revenue of $939.4 million.
Gross margin narrowed to 37.6% from 38.3%.
Same-store sales increased 8.4%, led by a 17% surge at West Elm. Pottery Barn’s same-store sales were up 9.9%, while those at Pottery Barn Kids and PBteen rose 8.2% and 16%, respectively.
The housewares and furniture retailer’s namesake stores recorded a 0.4% decline comparable store sales.
For the full year, the retailer is now projecting per-share earnings of $2.69 to $2.79 on revenue of $4.26 billion to $4.34 billion. Williams-Sonoma previously boosted its guidance to per-share earnings of $2.67 to $2.77 and revenue of $4.22 billion to $4.3 billion.
The company also said it expects third-quarter earnings of 51 cents to 54 cents a share on revenue of $1.02 billion to $1.04 billion. Wall Street was recently expecting 55 cents and $1.01 billion.
Also on Wednesday, Williams-Sonoma unveiled a deal with specialty retailer Stores Specialists to enter the Philippines market. Some of its brands are slate to debut in Manila in early 2014, Williams-Sonoma said.