WSM Williams Sonoma

Williams-Sonoma Inc. trimmed annual guidance Wednesday for sales and profit with Chief Executive Laura Alber saying the home-goods retailer was feeling the effects of "a more cautious consumer."

Comparable-brand sales at the Pottery Barn brand, the company's largest by revenue, retreated 4.8% during the second quarter, while profit also slipped. Comparable-brand revenue tracks same-store sales and online sales.

Williams-Sonoma said it now expect annual adjusted earnings on a per-share basis between $3.35 and $3.55, down from $3.50 to $3.65, and revenue between $5.08 billion and $5.23 billion, down from $5.15 billion to $5.25 billion.

Shares of the San Francisco company slipped 0.9% to $53.66 in after-hours trading Wednesday.

For the current quarter, the company expects adjusted profit between 75 cents and 80 cents a share on revenue in the range of $1.24 billion to $1.29 billion. Analysts surveyed by Thomson Reuters are a little more optimistic, projecting earnings of 81 cents a share on $1.29 billion in revenue.

Williams-Sonoma, which also owns the chain West Elm as well as its eponymous brand, has struggled in recent quarters from increased competition and a difficult macroeconomic environment.

Total comparable-brand revenue growth was 0.6%, with flat sales at Williams-Sonoma and a 15.8% jump at West Elm. Williams-Sonoma, which began selling online in 1999, gets half of its sales from e-commerce.

Over all, Williams-Sonoma earned $51.8 million, down from $53.7 million a year ago. Earnings on a per-share basis were flat at 58 cents. Revenue rose 2.8% to $1.16 billion.

Earnings excluding items were 58 cents a share.

Williams-Sonoma had projected adjusted earnings of 54 cents to 60 cents a share on revenue between $1.15 billion and $1.18 billion. Analysts surveyed by Thomson Reuters had expected adjusted earnings of 58 cents a share on $1.17 billion in revenue.

The company projected comparable-brand revenue to remain flat or climb as high as 4% in the third quarter, while pulling back full-year guidance to 1% to 4%, from 3% to 6% previously.

Founded in 1956 by Chuck Williams in Sonoma, Calif., the company has faced increased competition in a crowded sector from rivals such as Restoration Hardware Holdings Inc. and Crate & Barrel.

Write to Ezequiel Minaya at ezequiel.minaya@wsj.com

(END) Dow Jones Newswires

August 24, 2016 18:45 ET (22:45 GMT)

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