San Francisco -- Williams-Sonoma Inc. said Thursday it has cut its fiscal Q4 earnings outlook below Wall Street expectations due to heavy holiday promotions levels.
The company said it had to offer discounts to entice shoppers this holiday season. Although earnings guidance has been reduced to below expectations, Williams-Sonoma’s revenue outlook remains in line with Wall Street, trimmed to a range of $1.24 billion to $1.26 billion. The company had previously expected revenue as high as $1.27 billion.
In the eight weeks that ended on Dec. 25, Williams-Sonoma's revenue rose 4.2% to $901 million. Revenue from the company's websites, catalogs and same-store sales rose 4.9%, compared with 11.3% growth in the prior year.