Williams-Sonoma (WSM) reports mixed results, cuts full-year sales outlook; Shares still gain

Williams-Sonoma (NYSE: WSM) reported a mixed set of second-quarter results today, which prompted a full-year revenue outlook cut.

The company reported an EPS of $3.12, exceeding the analyst estimate of $2.72 by $0.40. The revenue for the quarter amounted to $1.86 billion, slightly below the consensus estimate of $1.96B.

Comparable sales fell as much as 11.9%, while analysts were looking for a decline of 8.2%.

“Connecting these results to our expectation for the balance of the year, we are updating our guidance to reflect both the ongoing topline uncertainty and the proven strength in our operating model,” said Laura Alber, President and Chief Executive Officer.

Williams-Sonoma now expects net revenue growth within the range of -5% to -10%, coupled with an operating margin projected between 15% and 16%.

“Over the long-term, we continue to expect mid-to-high single-digit annual net revenue growth with operating margin above 15%,” the company said.

By Senad Karaahmetovic

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