Williams-Sonoma Reports 2Q Profit Up 15%
New York City, Williams-Sonoma Inc. reported that its profit in the second quarter rose 15%, but the company lowered its full-year guidance due in part to weakness at its largest brand, Pottery Barn. Williams-Sonoma Inc. reported an income for the quarter ended July 30 of $35.6 million, up from $30.8 million for the same quarter last year. Comp-store sales rose 1.2%, driven especially by strength at the Pottery Barn Kids stores, while total revenue was up 6.4% to $825.5 million from $776.2 million.
Calif. Raises Minimum Wage to $8
Sacramento, Calif., Gov. Arnold Schwarzenegger and Democratic leaders have agreed to lift the minimum wage in California from $6.75 an hour to $8. The hike, the first since early 2004, will effect the more than 1 million Californians who earn minimum wage and will allow them to receive a nearly 20% pay increase over the next year and a half.
Workers will get a 75? increase Jan. 1 and an additional 50? on Jan. 1, 2008.
The jump to $7.50 on New Year’s Day will make California’s minimum wage the nation’s fourth-highest, following Washington, Oregon and Connecticut. The federal minimum wage is $5.15 an hour.
Borders Posts 2Q Loss
Los Angeles, Borders Group reported a second-quarter net loss of $18.4 million, matching Wall Street estimates, vs. a year-ago net profit of $1.3 million. Comp-store sales for Borders Superstores fell 5.3%, while comps at the Waldenbooks chain fell 12%. Revenue for the quarter fell 4% to $856.0 million.