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Williams-Sonoma Says Its Earnings Held Steady

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From Bloomberg News

Williams-Sonoma Inc., owner of home furnishing retail chains including Pottery Barn, said Tuesday that its fiscal fourth-quarter profit was little changed because of accounting changes and the smallest revenue gain in about nine years.

Net income increased to $102.6 million, or 86 cents a share, from $102.1 million, or 85 cents, a year earlier, the San Francisco-based company said. Revenue climbed 7.9% to $1.08 billion in the three months ended Jan. 30.

Profit was lowered by 9 cents a share because of changes in the way the company accounts for leases, the company said. The same-store sales gain of 1.5% was the smallest for the year, and results at the Pottery Barn chain declined because of an inventory shortage and slowing demand.

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Excluding the lease accounting expense, the company met the 95-cent average earnings estimate of 21 analysts surveyed by Thomson First Call.

Profit excluding the effect of a change in the way the company accounts for share-based payments will be 18 cents a share to 20 cents in the current quarter, 25 cents to 27 cents in the second quarter, 29 cents to 31 cents in the third quarter and $1.07 to $1.11 in the fourth quarter, the company said.

Annual profit will be $1.83 to $1.87. Analysts expect profit of 19 cents a share in the first quarter and $1.87 for the year. Before the fourth quarter, Williams-Sonoma’s profit beat analysts’ estimates for at least 10 quarters.

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Shares of Williams-Sonoma, which operates about 542 stores, rose $1.62 to $36.70 on the New York Stock Exchange, the biggest gain in seven months.

Chief Executive Edward Mueller added the Williams-Sonoma Home catalog last year and increased distribution of its Hold Everything and West Elm catalogs to boost sales. Catalog and Internet sales rose 7.1%, including a 26% gain in Internet sales.

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