Williams-Sonoma has readjusted its finances upward, saying that first quarter sales would total between $465 million and $475 million.
Previously, the San Francisco-based retail/catalog firm said the range would be between $461 million and 471 million.
Direct-to-consumer sales are expected to hit between $173 million and $177 million., the range projected in a previous earnings guidance. But they should reach $177 to $181 million in the second quarter–a leap over the $175 million to $179 million originally expected.
Second quarter sales should hit $491 million to $499 million, compared with the e$485 million to $495 million already predicted.
In addition, Williams-Sonoma released new figures for 2001 to reflect a shift in when revenue is reported.
Previously, the firm reported it when it was shipped. It is now reporting it when the merchandise is actually delivered.
The company has not yet filed its fiscal 2001 Form 10-K with the Securities of Exchange Commission.
The reporting shift, which took effect in the fourth quarter of 2001, led to a decrease in net earnings of $1 million, or .02 cents per share. Net earnings totaled $69 million for the quarter.
Direct-to-consumer revenue for the year now stands at $735 million, $6 million less than the figure released on March 11.
However, industry observers feel that this is a non-issue, and that the money will simply hit later.
“The sale has occurred,” said Harry Chevan, principal in investment firm Gruppo Levey and Co. “The question is when you should recognize the sale.”
However, Chevan added that the change is “a prudent move in light of increased scrutiny of companies in general by the Securities and Exchange Commission.
In a separate development, Williams-Sonoma said that its board of directors had approved a two-for-one stock split.
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