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Williams-Sonoma Catalog Circulation Keeps Shrinking

By Dec 05, 2008

Williams-Sonoma Inc. plans to continue reducing its catalog circulation through 2009, as overall sales decline.

Its catalog circulation is projected to decrease as much as 20% in current fiscal year, compared to fiscal year 2007.

The company decreased its catalog circulation 3.7% during fiscal 2007, compared to fiscal year 2006.

Direct marketing revenues for fiscal year 2008 are projected to exceed $1.3 billion, but that’s about 17% lower than the 2007 fiscal year.

Its catalog and Internet direct marketing revenues in the third quarter decreased more than 18% in the third quarter to $327.7 million, versus $400.9 million during the same quarter of 2007.

Revenue declines were driven largely by decreased sales in its Pottery Barn and Pottery Barn Kids brands

“Consistent with our outlook for the fourth quarter, we are also projecting that the trends we are seeing today will continue into 2009,” said in a statement Howard Lester, chairman and CEO at Williams-Sonoma.

During 2009, the company anticipates it will reduce catalog circulation by 15% to 20%, according to Lester.