Williams-Sonoma Sales Rise

Williams-Sonoma Inc. on Wednesday reported a gain in fiscal first-quarter revenue, but its stock fell as the upscale home furnishings retailer lowered its forecast for the current period.

The San Francisco-based company attributed its first-quarter results to strong clearance sales at its Hold Everything stores. But their absence will hurt projected second-quarter sales, and the company lowered its earnings and sales outlook.

Shares of Williams-Sonoma, which plans to close the chain by the end of the year, fell $1.80, or 4.6%, to $37.25.

The company, known for its namesake cookware stores and Pottery Barn home decor chain, affirmed its previous earnings outlook for the full year but slightly lowered its sales outlook.

For the quarter that ended April 30, the retailer said, net income fell to $23.1 million, or 20 cents a share, from $26.2 million, or 22 cents, a year earlier.

Excluding one-time items but including stock option expenses, the company earned 21 cents a share, beating analysts’ consensus of 18 cents, according to Reuters Estimates.

Sales rose 10% to $794.3 million, helped by a net increase of 17 stores and a 1.3% rise in sales at locations open at least a year.