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Williams-Sonoma (WSM)
Williams-Sonoma Boosts Full-Year Outlook
Williams-Sonoma posted a better-than-expected quarterly performance today. The home-goods retailer surprised Wall Street with a profit of $399,000. Williams-Sonoma Inc. even boosted its full-year forecast in accordance to its second quarter performance. Williams-Sonoma originally projected anywhere from a loss of 7 cents to a profit of 11 cents per share. However, now the San Francisco based company is expecting an earnings of 19 cents to 31 cents a share. How was Williams-Sonoma able to beat out analyst predictions for the quarter?
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Williams-Sonoma has worked very hard to improve its inventory forecasting. As a result, the home-goods supplier began scaling back inventory levels to match declining sales, which helped boost profit margins. In addition, Williams-Sonoma Incorporated launched an intense cost cutting initiative. Williams-Sonoma reduced its advertising spending, closed down underperforming stores, and lowered its distribution capacity and leased office space in an effort to streamline its expenses. The San Francisco based company also heavily discounted its product prices to entice consumers to buy. While Williams-Sonoma's profit levels are down considerably from previous quarters, it seems to be moving in the right direction.
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Overall, Williams-Sonoma is optimistic about not only this quarter's performance but quarters yet to come. Williams-Sonoma echoed this sentiment by increasing its full-year outlook. While the San Francisco home-goods supplier did manage to post a profit, it also saw its store sales decline 15.3%. In addition, there is outside speculation that Williams-Sonoma's price slashing may hurt its up-scale image. However, Williams-Sonoma is hoping that its improved inventory levels and cost saving efforts are enough to furnish it financial until the economy recovers.
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More Views on Williams-Sonoma
That's Williams-Sonoma Boosting Its Outlook - A closer look at if Williams-Sonoma will be able to meet its adjusted full-year outlook.
Williams-Sonoma's Q2 Profit All but Vanishes, Still Beats View, Outlook Raised (WSM) - Williams-Sonoma beats Wall Street expectations, but what does that mean for its stock value?
Financial Releases- An official breakdown of Williams-Sonoma's earnings report for Q2 .
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