Williams-Sonoma Inc., San Francisco, credited the disappointing fourth quarter results it expects to higher returns, inventory, and levels of customer service, according to reports.
Catalog and Internet sales rose 30% to $188.7 million, due mostly to the Pottery Barn and Pottery Barn Kids catalogs. Nevertheless, earnings for the quarter ending Jan. 30 will be between $0.81 and $0.82 per share, below the $0.94 consensus estimate from First Call/Thomson Financial. For the same quarter last year, Williams-Sonoma earned $43.9 million, or $0.75 per share.
Shoppers returning more products than the housewares and home furnishings company anticipated accounted for half the loss. Ironically, the successful program to increase catalog and Internet customer satisfaction with larger inventories and other customer service initiatives contributed to higher expenses than the company predicted.
Network
