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Williams-Sonoma announced Thursday its net income dropped 7.1%, as the housing slump weighed on profits. For the quarter, the company's net income was $27.1 million ($0.25/share) compared to $29.1 million ($0.25/share) last year. Revenue increased 5% to $895.1 million. Analysts projected the retailer to report $0.24/share on $896 million of revenue. CEO Howard Lester warned that a slowdown is approaching, saying, "As we look forward to the fourth quarter, we are doing so with a heightened sense of caution due to our belief that the overall macro environment is having a greater impact on retail traffic than we previously anticipated." The company reiterated its fourth-quarter outlook of $1.20-$1.26/share on revenue between $1.39-1.42 billion. However, Lester said that if the macro weakening persists, profit and sales figures will come in at the lower end of the ranges. The company said its same-store sales would be flat to up 1.0% for the year, down from the flat to up 1.5% range the company guided earlier. Shares of the company traded down 0.9% to $30.00 in pre-market trading Thursday.

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Source: Williams-Sonoma’s Profits Down; Sees Trouble Ahead