Housing woes hit Williams-Sonoma

Williams-Sonoma Inc., the biggest U.S. gourmet-cookware chain, said third-quarter profit dropped and fourth-quarter earnings would be at the low end of an earlier forecast as the housing slump discouraged shoppers. Its shares fell the most in a year.

Fewer customers are visiting stores this month than the retailer anticipated amid a weakening economy, Chief Executive Howard Lester said.

Net income decreased 7.1% to $27.1 million, or 25 cents a share, meeting analysts’ estimates. A year earlier, profit was $29.1 million, or 25 cents, the San Francisco-based company said. Revenue rose 5% to $895.1 million.

Williams-Sonoma shares fell $1.86, or 6%, to $28.40. That was the biggest decline since Nov. 16. The shares are down 9.7% this year.

Third-quarter profit was within the range of 22 cents to 27 cents a share that Williams-Sonoma forecast in August, excluding a tax expense of less than 1 cent. A Bloomberg survey of analysts showed an average estimate of 25 cents.

Fourth-quarter profit would fall in the low end of its forecast range of $1.20 to $1.26 a share, excluding items, the company said. It reiterated its revenue projection of $1.39 billion to $1.42 billion.