Williams-Sonoma cuts Q4 outlook
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.
Kohl’s expands New York design studio, adds California studio
Menomonee Falls, Wis. — Kohl’s Corp. said Thursday it is doubling the size of its design office in New York City, as well as adding its first design studio on the West Coast, in Santa Monica, Calif.
The move, said the company, represents a commitment to its exclusive brands.
"The investment reinforces our commitment to offering world-class brands at compelling value to our customers," said Kevin Mansell, Kohl’s chairman, president and CEO, in a statement.
Exclusive brands now account for 51% of Kohl’s total revenue.
The Santa Monica studio will open on Monday, staffed by 20 trend and graphic arts professionals. The company’s design studio in New York, located near the Garment District, will double in size to 100,000 sq. ft. by 2014. It currently houses 140 designers, but could nearly double to about 250, said the company.
99 Cents Only Q3 sales up 11%
Commerce, Calif. — 99 Cents Only Stores reported Wednesday that total third-quarter revenue rose to $403.9 million, from $365.4 million.
Sales at its namesake stores grew to $393.3 million from $354.1 million a year ago, just missing Wall Street’s expected $393.6 million in revenue.
For the quarter, same-store sales rose 8.5% on higher traffic and per-visit tickets.