Williams-Sonoma Plunges on Weak Outlook

[Stocks-to-Watch]

Williams-Sonoma (WSM) fell 12% this afternoon after saying that high marketing costs will hurt fourth quarter earnings. The company lowered its earnings forecast to $1.10 to $1.15 from $1.15 to $1.20 “due to the more promotional pricing environment and our focus on delivering value to our customers.” Analysts had expected $1.19, on average.

The Street did not reward the company for boosting its quarterly dividend to 29 cents from 22 cents, or adding a $225 million stock buyback.



Original Article Source by Barrons.com