San Francisco, CA, March 25—-Williams-Sonoma Inc. reported earnings in the fourth quarter that rose slightly despite a charge for the way it accounts for leases.
Net earnings were up to $102.6 million, or 86 cents a share, for the fourth quarter ended Jan. 30, from $102.1 million, or 85 cents a share, a year earlier.
The company focused on markdowns, distribution and transportation management, as well as cost containment to improve earnings, it said.
Excluding a lease accounting charge of $10.7 million, or 9 cents a share, earnings came to 95 cents a share for the latest quarter, matching the estimate of analysts surveyed by Thomson First Call.
Revenue increased 7.9 percent in the latest quarter to $1.08 billion from $1 billion.
The company reported improved revenue from its retail and direct-to-consumer sales. It also generated more revenue from shipping fees.
Sales at stores open at least a year, also known as same-store sales, climbed 1.5 percent.
For all of 2004, net income came to $180.1 million, or $1.51 a share, compared with $157.2 million, or $1.32 a share, for 2003.
Full-year revenue jumped 14 percent to $3.14 billion from $2.75 billion.
This fiscal year, Williams-Sonoma expects to improve earnings and revenue by adding 26 retail stores and increasing catalog circulation.
The chain also intends to strengthen marketing of its bridal and gift registry businesses.
The company anticipates full-year 2005 earnings of $1.83 to $1.87 a share. Wall Street, on average, expects the company to earn $1.87 a share.
The company anticipates sales to grow 3 percent to 5 percent at stores open at least a year.
