>>Earnings Expected t/b DOWN next Q--- by: hedgecutter10 05/26/04 03:44 pm Msg: 2330 of 2335 so wait to buy at a much better price. The street will beat them up as they are so good at doing.<<
YA LYIN' POS!
>>Looking ahead, the company continues to expect second quarter earnings of $0.18-$0.20 per share, compared to $0.15 posted in the second quarter of fiscal 2003. Analysts expect the company to report earnings of $0.19 per share.
Net revenues for the second quarter are now projected to be between $669.0 and $685.0 million from earlier expected $658.0 to $674.0 million.
For the second quarter, Williams-Sonoma still expects comparable store sales to grow by 1.0%-3.0%, and retail sales to be between $365.0 and $374.0 million.
The company expects to report earnings of $0.21 to $0.23 per share and $0.95 to $0.99 per share for the third quarter and fourth quarter, respectively.
For fiscal 2004, the company expects earnings to be between $1.53 and $1.57 per share, while analysts expect earnings of $1.56 per share.
Fiscal 2004, revenues are now expected to be between $3.126 and $3.186 billion, up from $3.101 to $3.173 billion earlier projected, and in line with analysts� revenue expectations of $3.15 billion. Comparable store sales growth is projected to be in the range of 2.5% to 4.0%, versus prior guidance of 2.0%-4.0% and retail net sales are expected to be between $1.791 and $1.824 billion for fiscal 2004.<<
Hedgehog44 What do you think about this? What are your contacts saying about this?
It sure is going to be hard for Williams-Sonoma to make next Quarters earnings if they do not have the staff in the DC's to ship the merchandise to the Retail Stores and through the Mail Order Division. My contact at the DC is telling me that Uppper Management is starting a new schedule for the hourly associates in mid July.
This schedule is being sold to the associates as a way for the companny to address service issues, cost performance issues and profit margins. It sure will be hard for the Retail DC to ship 185,000 to 200,000 units a week and the Mail Order DC's to ship 75-90,000 units a week with un-trained third party labor.
Hourly associates are banding together and talking to each other about being Represented.(aka Uniion). I do not know about you, but I would not put all my eggs in one basket, betting on a Companty that has 100% of all their Retail Inventory,90% of Furniture and 50% of their Mail Order Inventory sitting in a DC in Olive Branch Mississippi,with about 500 angry hourly associates talking the "U" word.
I haven't heard anything more lately, but I think the same jerks are still running the show. The employees were plenty pissed off last year, before anything like what you are talking about. They have out-sourced much of their labor (truck loading and unloading, repackaging, etc.) with much of this business going to one of the buddies of the upper management. Whether that is still the case, I don't know. If it has changed, I'm sure it is because another company came in, promised a load of crap without knowing better, and got the contract. The new company feels excited b/c they just got what they think is big business from "Williams Sonoma". This will last for a little while until WSM squeezes the life and the tiny profit margin out of this vendor until they either f$%k up b/c they had to hire such poor people due to the inability to pay a competitve wage or the vendor gives up before/after he goes bankrupt. The rotation continues all the while slowly losing key people both in the lower management positions out of frustration and a few good workers. Upper management looks good to California b/c they keep lowering costs. Eventually the spiral implodes and I am patiently waiting for that day......
May I disagree? It feels like WSM is in a "fundamental" sales and profit acceleration, and that it will continue regardless of week-to-week economic numbers, etc. The April QTR's results were not good- they were phenominal. If there is a potential quarter of weakness and downside variability for WSM's stuff, it was last QTR. It didn't happen. Better yet, PB is kickin' butt, catalogue and 'net sales are growing rapidly, and the core business is superbly managed. Now, you have an exponentially growing demographic of baby boomers' kids getting married( gift registry) this summer, and more forming households for years to come.
Perhaps the word "juggarnaut" would be hyperbole, but "on-a-roll" and "undervalued" are not.This is a great one to buy and to keep buying, and not try to predict exact prices, under the delusional trading dreams that we all often have. It's gonna go higher this year unless a dirty bomb goes off in Manhattan or D.C.