Williams-Sonoma, parent of specialty decor retailers Pottery Barn and West Elm, has canceled a five year, approximately $29 million deal with IBM to outsource its information technology operations.
In a filing with the Securities and Exchange Commission, the company did not give an explanation as to why it canceled the agreement. The contract had 2.5 years left before it expired.
In the first quarter, Williams-Sonoma saw earnings drop 21 percent. The company also has lowered guidance for the second quarter.
Based in San Francisco, Williams-Sonoma operates 584 stores, seven mail order catalogs and six e-commerce Web sites.