Williams-Sonoma Inc. (NYSE: WSM) reported fiscal first quarter earnings that were better than analysts had expected, but the upscale cookware retailer also cut its second quarter outlook.
Net income for the quarter fell 21 percent to $18.2 million, or 16 cents a share, from $23.1 million, or 20 cents, in the same quarter a year ago. Revenue grew 2.7 percent to $816.1 million from $794.3 million in the same period.
On average, analysts polled by Thomson Financial had expected earnings of 13 cents per share on $820 million in revenue.
The San Francisco-based firmâ€™s Pottery Barn stores, which accounts for half the firm's revenue, saw same store sales dip 1.2 percent for the quarter. Tough competition in the sector as well as a slowing housing market helped drag down sales, the company said.
The company also lowered its second-quarter earnings forecast by 3 cents a share, now expecting a profit range between 13 cents and 17 cents per share. Analysts, on average, had estimated earnings of 18 cents per share in the second quarter.
Shares of Williams-Sonoma were flat in midday trading at $33.96 on the New York Stock Exchange.