Check Out Line: Going micro to offset the macro
Check out Williams-Sonoma predicting that this fiscal year, it ”will be operating in one of the most challenging macro-economic environments we have seen in many years.”
The upscale home goods retailer, which operates the Williams-Sonoma, Pottery Barn and West Elm chains, reported higher-than-expected fourth quarter profit on Thursday, helped by an extra week of sales in the quarter compared with last year.
But the deteriorating U.S. housing market has not been a friend to retailers that make a living selling furniture and home decorations, and Williams-Sonoma, not very surprisingly, gave an earnings forecast for its current fiscal year that is below Wall Street expectations.
Acknowleging that it cannot turn around the macro environment, it is choosing to focus on a micro-enviroment — its own business.
It said it will be ”focused on the things we can control,” like reducing discretionary costs, keeping a close eye on inventory and cutting the number of catalogs it mails.
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