ATLANTA (Reuters) - Home-goods retailer Williams-Sonoma Inc swung to a third-quarter loss as consumers spent less amid the global financial crisis.
The company also said Thursday that it had terminated a $150 million stock buyback program to conserve cash and had amended a $300 million unsecured revolving credit line.
Williams-Sonoma stood by a previous forecast calling for lower profit for the current holiday quarter.
The operator of Pottery Barn and Williams-Sonoma stores posted a third-quarter net loss of $11 million, or 10 cents a share, compared with a profit of $27.1 million, or 25 cents a share, a year earlier.
Analysts' average forecast was a loss of 11 cents a share, according to Reuters Estimates.
Revenue fell 16 percent to $752.1 million as sales across the Williams-Sonoma, Pottery Barn and Pottery Barn Kids brands weakened. Sales at stores open at least a year were off 21.4 percent.
Gross margin contracted to 32 percent of sales from 38.2 percent a year earlier, hurt by increased price markdowns.
Home furnishings retailers have come under tremendous pressure as the softer U.S. economy and continuing housing slump have depressed sales. Going-out-of-business sales at Linens 'n Things, which is closing stores after filing for bankruptcy earlier this year, are also weighing on the sector.
Earlier this week, Bed Bath & Beyond
Last month, Pier 1 Imports
Williams-Sonoma stood by its October forecast calling for profit of 10 cents to 30 cents a share for the fourth quarter on revenue of $940 million to $1 billion. It said it expects full-year earnings of 27 cents to 47 cents a share, compared with an October forecast of 25 cents to 47 cents.
Analysts expect a profit of 19 cents a share for the fourth quarter, down from $1.15 a year earlier, according to Reuters Estimates.
For 2009, Williams-Sonoma said capital spending is expected to be $95 million to $105 million, down from $190 million to $200 million forecast for 2008.
(Reporting by Karen Jacobs; editing by John Wallace)
