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Williams-Sonoma not feeling too bullish


Williams-Sonoma Inc. reported mixed results for the second quarter, and issued a weak outlook for the current quarter amid "a more cautious consumer.”

The retailer reported net earnings of $51.8 million for the quarter ended July 31, compared with $53.7 million in the year-ago period.

Net revenues increased 2.1% to $1.16 billion, short of expectations, up from $1.13 billion last year.

Total same-store sales fell 0.6%. By brand, same-store sales fell 4.8% at Pottery Barn and 5.2% at PB Teen, and were flat at Williams-Sonoma. Same-store sales increased 15.8% at West Elm and 0.1% at Pottery Barn Kids.

Online net revenues increased 5.2% to $600 million from $570 million last year. E-commerce net revenues generated 51.7% of total company net revenues in the quarter, up from 50.6% of total company net revenues last year.

“Despite the progress that we have made against our strategic initiatives, the overall retail environment has softened and we are being impacted by a more cautious consumer,” said Laura Alber, president and CEO, Williams-Sonoma. “As a result, we have revised our outlook for the remainder of the year to reflect this change in trend. We remain focused on what we can control to drive growth and continuous improvements in our operations, including strengthening and growing our brands, further differentiating our product offering, innovating our marketing and digital strategies and enhancing the retail experience.”

The company said it now expects revenue in the range of $1.24 billion to $1.29 billion for the fiscal third quarter. Analysts surveyed by Zacks had expected revenue of $1.29 billion. It expects full-year earnings in the range of $3.35 to $3.55 per share, with revenue ranging from $5.08 billion to $5.23 billion.

As of May 1, 2016, Williams-Sonoma operated a total of 624 stores under five different banners.

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