Williams-Sonoma posts profit, ups yearly view

San Francisco Williams-Sonoma profit tumbled in the second quarter on charges related to underperforming stores and lower sales. But the retailer’s adjusted results beat analysts' estimates and the company boosted its full-year and third-quarter earnings forecasts, citing an improved sales trend.

Net income slipped to $399,000, or breakeven per share, compared with $18.4 million last year, which included charges related to underperforming stores.

Sales for the period ended Aug. 2 slid 18% to $672.1 million from $819.6 million, but managed to top Wall Street's estimate of $658.3 million. The company experienced declines in both retail and direct-to-consumer revenue. Same-store sales fell 15.3%.

The company closed underperforming stores, reined in advertising spending and managed inventories tightly in a bid to cut costs in the slump.

The retailer, which also plans to reduce its distribution capacity and leased office space, said it expects to close seven more stores by the end of the year, raising the total number of store closings in the year to 16.