San Francisco, CA, July 11, 2006--Williams-Sonoma on Tuesday cut its quarterly revenue forecast on disappointing sales at its Pottery Barn chain, and said its chief executive officer was retiring this week.
The company also adjusted its profit forecast for the second quarter to reflect a charge for CEO Ed Meuller's departure and a gain from gift certificates that it does not expect to be redeemed.
Williams-Sonoma now expects second-quarter earnings in the range of $0.25 to $0.27 per share, including about $0.03 per share in severance costs and roughly $0.06 per share in income from unredeemed gift certificates.
That was up from the retailer's previous forecast of $0.20 to $0.22 per share.
Analysts, on average, expected quarterly earnings of $0.22 per share.
Mueller is leaving as of July 14, but will continue as a director through the expiration of his term in May 2007. The current chairman, Howard Lester, who was CEO from 1979 to 2001, was reappointed CEO.
The retailer said second-quarter sales were "more challenging" than it had expected at Pottery Barn, but cost cutting efforts helped protect profits.
Williams-Sonoma now expects second-quarter revenues in the range of $823 million to $837 million, down from its earlier forecast of $842 million to $856 million.
Quarterly retail revenues, which exclude catalog and online sales, are expected to be in the range of $463 million to $471 million, down from its previous forecast for $466 million to $474 million.
