Williams-Sonoma, Inc. (NYSE:WSM) had a mediocre third quarter, sending its stock lower after the bell.
The appliances retailer posted earnings of 84 cents per share on an adjusted basis, marking an 8% growth year-over-year. Analysts polled by Zacks Investment Research expected earnings of 84 cents per share.
Revenue was also close to Wall Street’s consensus estimate at $1.299 billion, compared to the guidance of $1.29 billion. The figure surged 2.9% compared to the year-ago mark.
Williams-Sonoma’s net revenue also surged 6.4% to $690 million for the period. Overall, the company’s comparable brand revenue grew 3.3% with its namesake brand increasing 2.3%.
Pottery Barn was its weakest brand, slipping 0.3%, while West Elm comps soared 11.5%. PBteen gained 3% in same-store sales, while Pottery Barn Kids dipped 0.1%.
For its current fourth quarter, Williams-Sonoma sees its adjusted earnings to be in the range of $1.49 to $1.64 per share. Total net revenues will be in the range of $1.61 billion to $1.68 billion, while comparable brand revenue growth will be between 2% an 6%.
“During the quarter, strong execution against our product and digital initiatives drove new customer acquisition and top-line expansion in a competitive and dynamic retail environment,” said Laura Alber, President and CEO.
Williams-Sonoma also announced the acquisition of Outward, Inc. in an all-cash deal worth $112 million. The startup specializes in 3-D imagining and augmented reality platform for the home furnishings and decor industry.
WSM shares nosedives 7.7% after hours.