Pottery Barn made the biggest recovery, rising 1.8%, up from its 1.2% loss in the first quarter. Williams-Sonoma rose 1.1%, bouncing back from a 0.6% drop. But Pottery Barn Kids fell 3.8%, the same slide it posted in the first quarter.
Though the 190 Pottery Barns and 252-unit Williams-Sonoma improved, the company still felt pressure in a tough consumer environment, executives say. "There is no question that there was macro pressure on all of our business during the second quarter," said Sharon McCollam, the retailer's chief financial and operating officer, during a conference call.
During the third quarter, Williams-Sonoma is opening six and closing five of its namesake stores, opening 10 and shutting three Pottery Barns, adding two units to its 92-store Pottery Barn Kids and opening three of its urban West Elm locations, of which there are currently 23. Additionally, the company is testing its first two Pottery Barn Kids Baby Clothing stores in the back half of the year.
Net revenues during the second quarter, which ended July 29, rose 4.1%, to $859.4 million from the same year-ago period, while diluted earnings per share fell to 23 cents from 30 cents. For the coming quarter, executives predict same-store sales to come in between a 1% decrease and 1.5% gain.
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