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SAN FRANCISCO-Lagging sales at Pottery Barn held back third-quarter results for parent company Williams-Sonoma, as the chain faces increasing competition, the retailer’s management says. Pottery Barn’s same-store sales decreased 2.5% year from last year, leading to flat results for William-Sonoma’s combined chains.

“We have been copied so aggressively by so many people,” said Howard Lester, Williams-Sonoma’s chairman and chief executive officer, during his company’s quarterly conference call. “Copies come from Wal-Mart today a little bit.” Other chains that are, in part, duplicating Pottery Barn’s efforts are Restoration Hardware, Target and Z Gallerie, he says.

Pottery Barn’s results contributed to a net earnings drop of 21.4%, or $29.1 million, compared to the same period last year. Total revenues inched up 3%, hitting $852.8 million.

Results at the 193-store Pottery Barn has also led executives to reduce the company’s revenue guidance for the fourth quarter by $46 million, to $1.234 billion. Management is also reducing earnings-per-share guidance by 15 cents, to between $1 and $1.06.

Meanwhile, Williams-Sonoma’s 255-unit namesake chain had a solid quarter, posting a 4.3% same-store sales gain. Pottery Barn Kids was up 2.3%, while the company’s outlets slid 6.7%. “If Pottery Barn were performing at average rates, we’d be very enthusiastic about our business.”

Other than Pottery Barn and Williams-Sonoma, the company operates 22 of its urban West Elm stores, 91 Pottery Barn Kids and five Williams-Sonoma home stores. So far this quarter, the retailer opened its first two Pottery Barn Bed + Bath stores, one each in New York City and Orlando.

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