Another retailer has sent a third-quarter warning flare into the sky. Williams-Sonoma Inc. (San Francisco) warned yesterday that its fiscal third quarter earnings would fall short of expectations. The company cited weak catalog sales, higher advertising costs, deeper discounting and higher freight costs. In addition, analysts said higher interest rates and gasoline prices have also contributed to the loss, prompting consumers to reduce spending.
The company began worrying after its early 2000 holiday catalogs missed estimated sales by 10 percent. The four major catalog divisions, Pottery Barn, Pottery Barn Kids, Hold Everything and Williams-Sonoma, had received such high demand in last year's third quarter that the company had increased mailings by 50 percent this year.
Williams-Sonoma also announced that its cfo, John Tate, resigned, and that Sharon McCollam, vp of finance, will succeed Tate as of November 1. Tate will Join Krispy Kreme Doughnuts Inc. (Winston-Salem, N.C.) as cfo and president of manufacturing and distribution. (He will at first share the presidency with J. Paul Breitbach, who is expected to retire within a year.)