San Francisco, CA, November 19--- Williams-Sonoma Inc. Thursday said its profit rose 19 percent in the third quarter, helped by brisk Pottery Barn business and a new link in the supply chain that strengthened furniture sales.
However, purveyor of kitchen and home products slightly trimmed estimates for fourth-quarter earnings and revenue.
The company also dropped its view for fiscal 2005 revenue slightly.
For the fiscal third quarter ended Oct. 31, net earnings of $28.5 million, or $0.24 a share. That's up from the prior year's $23.9 million, or $0.20 a share.
Analysts had forecast earnings of $0.23 a share.
Revenue rose 14 percent to $722.8 million from $632.8 million, driven by increases in leased floor space and same-store sales gains. Same-store sales, or sales in stores open a year, rose 3.1 percent.
Third-quarter same-store sales at Williams-Sonoma's flagship stores slipped 4.2 percent, compensated by a same-store sales jump of 19.6 percent at outlet stores.
Same-store sales at Pottery Barn rose 5.7 percent and by 5.6 percent at Pottery Barn Kids.
Furniture sales rose 35 percent, helped by the opening of an East Coast distribution center.
During the quarter, the company launched a Williams-Sonoma Home catalog, and recently said it will open the new brand's first four stores in California, Ohio and Oregon, stocking furniture, accessories and linens.
For the fourth quarter ending in January, Williams-Sonoma pruned its earnings projection to a range of $0.93 to $0.97 a share, from a prior estimate of $0.95 to $0.99 a share.
The company now expects fourth-quarter revenue of $1.106 billion to $1.13 billion, down from earlier expectations of $1.11 billion to $1.14 billion. Wall Street is looking for $1.135 billion, higher than the prior year's $1.004 billion.
