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Last Update: 12-Jan-12 10:50 ET
Williams-Sonoma Down Over 12% After Lowering Guidance This Morning
Earlier this morning, Williams-Sonoma (WSM $34.23 -4.85) lowered fourth quarter EPS guidance to $1.10-1.15, excluding non-recurring items, from previous guidance of $1.15-1.20 vs. $1.20 Capital IQ Consensus Estimate.
Comparable brand revenue growth in the fourth quarter 11 is now expected to be in the range of 4.5% to 6.5%. Non-GAAP and GAAP gross margin in the fourth quarter 11 is now expected to be in the range of 40.7% to 41.0%.
Co also announced that net revenues for the 8-week holiday period ended December 25, 2011 increased 4.2% to $901 million versus the 8-week holiday period ended December 26, 2010, including a comparable brand revenue increase of 4.9%. The company also announced it increased its dividend to $0.22/share to $0.17/share.
"Looking forward to fiscal 2012, we remain committed to the fundamental strategies that drove our record earnings performance in fiscal 2011 and allowed us to gain market share, invest in future growth and improve company-wide profitability. These strategies include attracting new customers to our brands, filling ‘white space' in the marketplace by expanding our merchandise categories, and capitalizing on the world-class service that distinguishes our brands from the competition. These strategies also include continuing to drive efficiencies in our global supply chain and expanding our initiatives in e-commerce....Holiday comparable brand revenues increased 4.9% on top of 11.3% last year. Our home furnishings brands had strong performance, particularly West Elm and Pottery Barn. Williams-Sonoma faced greater challenges on a year-over-year basis given the heavy market discounting on nationally branded products."
Comparable brand revenue growth in the fourth quarter 11 is now expected to be in the range of 4.5% to 6.5%. Non-GAAP and GAAP gross margin in the fourth quarter 11 is now expected to be in the range of 40.7% to 41.0%.
Co also announced that net revenues for the 8-week holiday period ended December 25, 2011 increased 4.2% to $901 million versus the 8-week holiday period ended December 26, 2010, including a comparable brand revenue increase of 4.9%. The company also announced it increased its dividend to $0.22/share to $0.17/share.
"Looking forward to fiscal 2012, we remain committed to the fundamental strategies that drove our record earnings performance in fiscal 2011 and allowed us to gain market share, invest in future growth and improve company-wide profitability. These strategies include attracting new customers to our brands, filling ‘white space' in the marketplace by expanding our merchandise categories, and capitalizing on the world-class service that distinguishes our brands from the competition. These strategies also include continuing to drive efficiencies in our global supply chain and expanding our initiatives in e-commerce....Holiday comparable brand revenues increased 4.9% on top of 11.3% last year. Our home furnishings brands had strong performance, particularly West Elm and Pottery Barn. Williams-Sonoma faced greater challenges on a year-over-year basis given the heavy market discounting on nationally branded products."
