Pottery Barn Sales Slump

SAN FRANCISCO-Pottery Barn’s sales were down during parent company Williams-Sonoma’s second quarter, posting a performance that Chairman and Chief Executive Howard Lester calls, “way below expectations.” Year-over-year same-store slid 0.2%, and revenues increased 5.6% for the period, which ended July 30.

Executives say the problems at the 191-store chain were fueled by general macro-economic conditions and not specific issues at Pottery Barn. They also blame a decrease in mall traffic. “We’re seeing a greater price sensitivity than we have in the past,” said Laura Abler, president of the company, during a conference call.

The company is now adjusting prices at the chain and changing assortment displays, among other initiatives. Furniture was the only category in which Pottery Barn posted a sales gain during the quarter, and management says that this is due to having lower prices than competitors in the segment.