10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 3, 2015.

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                          to                         

Commission File Number: 001-14077

WILLIAMS-SONOMA, INC.

(Exact name of registrant as specified in its charter)

Delaware	94-2203880
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
3250 Van Ness Avenue, San Francisco, CA	94109
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (415) 421-7900

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  x     No   ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes  x     No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

As of May 31, 2015, 91,553,769 shares of the registrant’s Common Stock were outstanding.

WILLIAMS-SONOMA, INC.

REPORT ON FORM 10-Q

FOR THE QUARTER ENDED MAY 3, 2015

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION

		PAGE
Item 1.	Financial Statements		2
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		12
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		17
Item 4.	Controls and Procedures		18
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings		19
Item 1A.	Risk Factors		19
Item 2.	Unregistered Sales of Equity Securities And Use of Proceeds		19
Item 3.	Defaults Upon Senior Securities		19
Item 4.	Mine Safety Disclosures		19
Item 5.	Other Information		19
Item 6.	Exhibits		20

1

ITEM 1. FINANCIAL STATEMENTS

WILLIAMS-SONOMA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

	Thirteen Weeks Ended
In thousands, except per share amounts	May 3, 2015		May 4, 2014
Net revenues	$	1,030,676	$	974,330
Cost of goods sold		651,835		605,922
Gross profit		378,841		368,408
Selling, general and administrative expenses		306,913		294,082
Operating income		71,928		74,326
Interest (income) expense, net		8		(69	)
Earnings before income taxes		71,920		74,395
Income taxes		27,130		28,233
Net earnings	$	44,790	$	46,162
Basic earnings per share	$	0.49	$	0.49
Diluted earnings per share	$	0.48	$	0.48
Shares used in calculation of earnings per share:
Basic		91,707		93,993
Diluted		93,300		95,618

See Notes to Condensed Consolidated Financial Statements.

WILLIAMS-SONOMA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Thirteen Weeks Ended
In thousands	May 3, 2015			May 4, 2014
Net earnings	$	44,790		$	46,162
Other comprehensive income (loss):
Foreign currency translation adjustments		867			1,398
Change in fair value of derivative financial instruments, net of tax		(379	)		(298	)
Reclassification adjustment for realized gains on derivative financial instruments, net of tax		(198	)		(233	)
Comprehensive income	$	45,080		$	47,029

See Notes to Condensed Consolidated Financial Statements.

2

WILLIAMS-SONOMA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

In thousands, except per share amounts	May 3, 2015			February 1, 2015			May 4, 2014
ASSETS
Current assets
Cash and cash equivalents	$	78,851		$	222,927		$	112,870
Restricted cash		0			0			14,295
Accounts receivable, net		64,720			67,465			54,725
Merchandise inventories, net		942,800			887,701			850,416
Prepaid catalog expenses		35,648			33,942			34,986
Prepaid expenses		59,684			36,265			79,491
Deferred income taxes, net		130,889			130,618			121,443
Other assets		11,627			13,005			9,261
Total current assets		1,324,219			1,391,923			1,277,487
Property and equipment, net		876,785			883,012			837,012
Non-current deferred income taxes, net		0			4,265			0
Other assets, net		50,085			51,077			53,601
Total assets	$	2,251,089		$	2,330,277		$	2,168,100
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	367,525		$	397,037		$	369,279
Accrued salaries, benefits and other		87,067			136,012			88,796
Customer deposits		258,854			261,679			233,563
Borrowings under revolving line of credit		60,000			0			0
Income taxes payable		8,322			32,488			2,571
Current portion of long-term debt		1,968			1,968			1,785
Other liabilities		45,092			46,764			40,232
Total current liabilities		828,828			875,948			736,226
Deferred rent and lease incentives		170,528			166,925			158,339
Long-term debt		0			0			1,968
Non-current deferred income taxes, net		1,958			0			2,850
Other long-term obligations		63,143			62,698			60,425
Total liabilities		1,064,457			1,105,571			959,808
Commitments and contingencies
Stockholders’ equity
Preferred stock: $.01 par value; 7,500 shares authorized; none issued		0			0			0
Common stock: $.01 par value; 253,125 shares authorized; 91,644, 91,891 and 94,184 shares issued and outstanding at May 3, 2015, February 1, 2015 and May 4, 2014, respectively		917			919			942
Additional paid-in capital		527,257			527,261			509,178
Retained earnings		662,671			701,214			693,670
Accumulated other comprehensive income (loss)		(2,257	)		(2,548	)		7,391
Treasury stock, at cost		(1,956	)		(2,140	)		(2,889	)
Total stockholders’ equity		1,186,632			1,224,706			1,208,292
Total liabilities and stockholders’ equity	$	2,251,089		$	2,330,277		$	2,168,100

See Notes to Condensed Consolidated Financial Statements.

3

WILLIAMS-SONOMA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Thirteen Weeks Ended
In thousands	May 3, 2015			May 4, 2014
Cash flows from operating activities:
Net earnings		$   44,790			$   46,162
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization		41,478			38,630
Loss on disposal/impairment of assets		1,694			644
Amortization of deferred lease incentives		(5,999	)		(5,782	)
Deferred income taxes		(5,498	)		(4,649	)
Tax benefit related to stock-based awards		20,572			43,223
Excess tax benefit related to stock-based awards		(8,724	)		(21,371	)
Stock-based compensation expense		14,010			12,368
Other		51			173
Changes in:
Accounts receivable		2,864			5,692
Merchandise inventories		(53,746	)		(36,108	)
Prepaid catalog expenses		(1,706	)		(1,430	)
Prepaid expenses and other assets		(21,439	)		(41,951	)
Accounts payable		(25,030	)		(19,276	)
Accrued salaries, benefits and other current and long-term liabilities		(51,387	)		(48,164	)
Customer deposits		(3,106	)		5,216
Deferred rent and lease incentives		8,260			3,092
Income taxes payable		(24,155	)		(46,798	)
Net cash used in operating activities		(67,071	)		(70,329	)
Cash flows from investing activities:
Purchases of property and equipment		(40,384	)		(38,119	)
Other		5			133
Net cash used in investing activities		(40,379	)		(37,986	)
Cash flows from financing activities:
Borrowings under revolving line of credit		60,000			0
Repurchase of common stock		(52,562	)		(53,309	)
Payment of dividends		(31,934	)		(32,891	)
Tax withholdings related to stock-based awards		(21,734	)		(46,730	)
Excess tax benefit related to stock-based awards		8,724			21,371
Net proceeds related to stock-based awards		1,836			2,997
Other		0			(6	)
Net cash used in financing activities		(35,670	)		(108,568	)
Effect of exchange rates on cash and cash equivalents		(956	)		(368	)
Net decrease in cash and cash equivalents		(144,076	)		(217,251	)
Cash and cash equivalents at beginning of period		222,927			330,121
Cash and cash equivalents at end of period		$   78,851			$ 112,870

See Notes to Condensed Consolidated Financial Statements.

4

WILLIAMS-SONOMA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE A. FINANCIAL STATEMENTS - BASIS OF PRESENTATION

These financial statements include Williams-Sonoma, Inc. and its wholly owned subsidiaries (“we,” “us” or “our”). The Condensed Consolidated Balance Sheets as of May 3, 2015 and May 4, 2014, the Condensed Consolidated Statements of Earnings, the Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Cash Flows for the thirteen weeks then ended, have been prepared by us, without audit. In our opinion, the financial statements include all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at the balance sheet dates and the results of operations for the thirteen weeks then ended. Intercompany transactions and accounts have been eliminated. The balance sheet as of February 1, 2015, presented herein, has been derived from our audited Consolidated Balance Sheet included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2015.

The results of operations for the thirteen weeks ended May 3, 2015 are not necessarily indicative of the operating results of the full year.

Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2015.

New Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, to clarify the principles of recognizing revenue and create common revenue recognition guidance between U.S. GAAP and International Financial Reporting Standards. This ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2016. We are currently assessing the potential impact of this ASU on our Condensed Consolidated Financial Statements.

NOTE B. STOCK-BASED COMPENSATION

Equity Award Programs

Our Amended and Restated 2001 Long-Term Incentive Plan (the “Plan”) provides for grants of incentive stock options, nonqualified stock options, stock-settled stock appreciation rights (collectively, “option awards”), restricted stock awards, restricted stock units (including those that are performance-based), deferred stock awards (collectively, “stock awards”) and dividend equivalents up to an aggregate of 25,760,000 shares. As of May 3, 2015, there were approximately 2,737,000 shares available for future grant under the plan. Subsequently, on May 29, 2015, our stockholders approved an amendment and restatement of the Plan to, among other things, increase the shares issuable by 6,550,000 shares and extend the term to 2025. Awards may be granted under the Plan to officers, employees and non-employee members of the board of directors of the company (the “Board”) or any parent or subsidiary. Shares issued as a result of award exercises or releases are primarily funded with the issuance of new shares.

Option Awards

Annual grants of option awards are limited to 1,000,000 shares on a per person basis and have a maximum term of seven years. The exercise price of these option awards is not less than 100% of the closing price of our stock on the day prior to the grant date. Option awards granted to employees generally vest over a period of four years for service-based awards. Certain option awards contain vesting acceleration clauses resulting from events including, but not limited to, retirement, merger or a similar corporate event.

5

Stock Awards

Annual grants of stock awards are limited to 400,000 shares on a per person basis. Stock awards granted to employees generally vest evenly over a period of four years for service-based awards. Certain performance-based awards, which have variable payout conditions based on predetermined financial targets, vest three years from the date of grant. Certain stock awards and other agreements contain vesting acceleration clauses resulting from events including, but not limited to, retirement, merger or a similar corporate event. Stock awards granted to non-employee Board members generally vest in one year. Non-employee Board members automatically receive stock awards on the date of their initial election to the Board and annually thereafter on the date of the annual meeting of stockholders (so long as they continue to serve as a non-employee Board member).

Stock-Based Compensation Expense

We measure and record stock-based compensation expense for all employee stock-based awards using a fair value method. During the thirteen weeks ended May 3, 2015 and May 4, 2014, we recognized total stock-based compensation expense, as a component of selling, general and administrative expenses, of $14,010,000 and $12,368,000, respectively.

Stock Options

The following table summarizes our stock option activity during the thirteen weeks ended May 3, 2015:

	Shares
Balance at February 1, 2015		107,000
Granted		0
Exercised		(47,737	)
Cancelled		0
Balance at May 3, 2015 (100% vested)		59,263

Stock-Settled Stock Appreciation Rights

The following table summarizes our stock-settled stock appreciation right activity during the thirteen weeks ended May 3, 2015:

	Shares
Balance at February 1, 2015		1,159,948
Granted		0
Converted into common stock		(160,350	)
Cancelled		(1,186	)
Balance at May 3, 2015		998,412
Vested at May 3, 2015		976,987
Vested plus expected to vest at May 3, 2015		991,233

Restricted Stock Units

The following table summarizes our restricted stock unit activity during the thirteen weeks ended May 3, 2015:

	Shares
Balance at February 1, 2015		2,313,477
Granted		729,536
Released		(545,484	)
Cancelled		(16,245	)
Balance at May 3, 2015		2,481,284
Vested plus expected to vest at May 3, 2015		1,720,829

6

NOTE C. EARNINGS PER SHARE

Basic earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding and common stock equivalents for the period. Common stock equivalents consist of shares subject to stock-based awards with exercise prices less than or equal to the average market price of our common stock for the period, to the extent their inclusion would be dilutive.

The following is a reconciliation of net earnings and the number of shares used in the basic and diluted earnings per share computations:

In thousands, except per share amounts	Net Earnings		Weighted Average Shares		Earnings Per Share
Thirteen weeks ended May 3, 2015
Basic	$	44,790		91,707	$	0.49
Effect of dilutive stock-based awards				1,593
Diluted	$	44,790		93,300	$	0.48
Thirteen weeks ended May 4, 2014
Basic	$	46,162		93,993	$	0.49
Effect of dilutive stock-based awards				1,625
Diluted	$	46,162		95,618	$	0.48

There were no stock-based awards excluded from the computation of diluted earnings per share for the thirteen weeks ended May 3, 2015. Anti-dilutive stock-based awards outstanding were 160,000 as of May 4, 2014, and were excluded from the computation of diluted earnings per share.

NOTE D. SEGMENT REPORTING

We have two reportable segments, e-commerce and retail. The e-commerce segment has the following merchandising strategies: Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, PBteen, Williams-Sonoma Home, Rejuvenation and Mark and Graham, which sell our products through our e-commerce websites and direct-mail catalogs. Our e-commerce merchandising strategies are operating segments, which have been aggregated into one reportable segment, e-commerce. The retail segment has the following merchandising strategies: Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm and Rejuvenation, which sell our products through our retail stores. Our retail merchandising strategies are operating segments, which have been aggregated into one reportable segment, retail. Our operating segments have had similar historical economic characteristics and it is management’s expectation that the operating segments will have similar long-term financial performance in the future.

These reportable segments are strategic business units that offer similar home-centered products. They are managed separately because the business units utilize two distinct distribution and marketing strategies. Based on management’s best estimate, our operating segments include allocations of certain expenses, including advertising and employment costs, to the extent they have been determined to benefit both channels. These operating segments are aggregated at the channel level for reporting purposes due to the fact that our brands are interdependent for economies of scale and we do not maintain fully allocated income statements at the brand level. As a result, material financial decisions related to the brands are made at the channel level. Furthermore, it is not practicable for us to report revenue by product group.

We use operating income to evaluate segment profitability. Operating income is defined as earnings (loss) before net interest income or expense and income taxes. Unallocated costs before interest and income taxes include employee-related costs, occupancy expenses (including depreciation expense), administrative costs and third party service costs, primarily in our corporate departments. Unallocated assets include corporate cash and cash equivalents, deferred income taxes, the net book value of corporate facilities and related information systems, and other corporate long-lived assets.

7

Income tax information by reportable segment has not been included as income taxes are calculated at a company-wide level and are not allocated to each reportable segment.

Segment Information

In thousands	E-commerce		Retail		Unallocated			Total
Thirteen weeks ended May 3, 2015
Net revenues1	$	532,573	$	498,103	$	0		$	1,030,676
Depreciation and amortization expense		8,102		20,150		13,226			41,478
Operating income (loss)		127,574		28,126		(83,772	)		71,928
Assets2		610,976		1,053,039		587,074			2,251,089
Capital expenditures		3,936		19,928		16,520			40,384
Thirteen weeks ended May 4, 2014
Net revenues1	$	491,289	$	483,041	$	0		$	974,330
Depreciation and amortization expense		7,407		19,360		11,863			38,630
Operating income (loss)		121,136		30,196		(77,006	)		74,326
Assets2		547,077		988,659		632,364			2,168,100
Capital expenditures		9,477		14,700		13,942			38,119

¹  Includes net revenues of approximately $54.8 million and $51.1 million for the thirteen weeks ended May 3, 2015 and May 4, 2014, respectively, related to our foreign operations.

²  Includes long-term assets of approximately $59.0 million and $59.8 million as of May 3, 2015 and May 4, 2014, respectively, related to our foreign operations.

NOTE E. COMMITMENTS AND CONTINGENCIES

We are involved in lawsuits, claims and proceedings incident to the ordinary course of our business. These disputes, which are not currently material, are increasing in number as our business expands and our company grows larger. We review the need for any loss contingency reserves and establish reserves when, in the opinion of management, it is probable that a matter would result in liability, and the amount of loss, if any, can be reasonably estimated. In view of the inherent difficulty of predicting the outcome of these matters, it may not be possible to determine whether any loss is probable or to reasonably estimate the amount of the loss until the case is close to resolution, in which case no reserve is established until that time. Any claims against us, whether meritorious or not, could be time consuming, result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources. The results of these lawsuits, claims and proceedings cannot be predicted with certainty. However, we believe that the ultimate resolution of these current matters will not have a material adverse effect on our consolidated financial statements taken as a whole.

NOTE F. STOCK REPURCHASE PROGRAM AND DIVIDEND

Stock Repurchase Program

During the thirteen weeks ended May 3, 2015, we repurchased 664,402 shares of our common stock at an average cost of $79.11 per share for a total cost of approximately $52,562,000. As of May 3, 2015, we held treasury stock of $1,956,000 which represents the cost of shares available for re-issuance to satisfy future stock-based award settlements in certain foreign jurisdictions.

During the thirteen weeks ended May 4, 2014, we repurchased 840,761 shares of our common stock at an average cost of $63.41 per share for a total cost of approximately $53,309,000.

8

Stock repurchases under this program may be made through open market and privately negotiated transactions at times and in such amounts as management deems appropriate. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, capital availability and other market conditions. This stock repurchase program does not have an expiration date and may be limited or terminated at any time without prior notice.

Dividend

We declared cash dividends of $0.35 and $0.33 per common share during the thirteen weeks ended May 3, 2015 and May 4, 2014, respectively.

NOTE G. DERIVATIVE FINANCIAL INSTRUMENTS

We have retail and e-commerce businesses in Canada, Australia and the United Kingdom, and operations throughout Asia and Europe, which expose us to market risk associated with foreign currency exchange rate fluctuations. Substantially all of our purchases and sales are denominated in U.S. dollars, which limits our exposure to this risk. While the impact of foreign currency exchange rate fluctuations was not significant to us in the first quarter of fiscal 2015, we continue to see volatility in the exchange rates in the countries in which we do business. As we continue to expand globally, the foreign currency exchange risk related to the transactions of our foreign subsidiaries may increase. To mitigate this risk, we hedge a portion of our foreign currency exposure with foreign currency forward contracts in accordance with our risk management policies. We do not enter into such contracts for speculative purposes.

The assets or liabilities associated with the derivative instruments are measured at fair value and recorded in either other current assets or other current liabilities. As discussed below, the accounting for gains and losses resulting from changes in fair value depends on whether the derivative instrument is designated as a hedge and qualifies for hedge accounting in accordance with the Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging.

Cash Flow Hedges

We enter into foreign currency forward contracts designated as cash flow hedges for forecasted inventory purchases in U.S. dollars by our foreign subsidiaries. These hedges generally have terms of up to 12 months. All hedging relationships are formally documented, and the forward contracts are designed to mitigate foreign currency exchange risk on hedged transactions. We record the effective portion of changes in the fair value of our cash flow hedges in other comprehensive income (“OCI”) until the earlier of when the hedged forecasted inventory purchase occurs or the respective contract reaches maturity. Subsequently, as the inventory is sold to the customer, we reclassify amounts previously recorded in OCI to cost of goods sold. Changes in the fair value of the forward contract related to interest charges or “forward points” are excluded from the assessment and measurement of hedge effectiveness and are recorded immediately in other income (expense), net. Based on the rates in effect as of May 3, 2015, we expect to reclassify a net gain of approximately $540,000 from OCI to cost of goods sold over the next 12 months.

We also enter into non-designated foreign currency forward contracts to reduce the exchange risk associated with our assets and liabilities denominated in a foreign currency. Any foreign exchange gains (losses) related to these contracts are recognized in other income (expense), net.

9

As of May 3, 2015, and May 4, 2014, we had foreign currency forward contracts outstanding (in U.S. dollars) as follows:

In thousands	May 3, 2015		May 4, 2014
Contracts to sell Canadian dollars and buy U.S. dollars
Contracts designated as cash flow hedges	$	20,400	$	23,000
Contracts not designated as cash flow hedges 1	$	0	$	1,500
Contracts to sell Australian dollars and buy U.S. dollars
Contracts not designated as cash flow hedges	$	26,000	$	10,000

¹  These contracts are no longer designated as cash flow hedges as the related inventory purchases have occurred.

Hedge effectiveness is evaluated prospectively at inception, on an ongoing basis, as well as retrospectively using regression analysis. Any measureable ineffectiveness of the hedge is recorded in other income (expense), net. No gain or loss was recognized for cash flow hedges due to hedge ineffectiveness and all hedges were deemed effective for assessment purposes for the thirteen weeks ended May 3, 2015 and May 4, 2014.

The effect of derivative instruments in our Condensed Consolidated Financial Statements, pre-tax, was as follows:

In thousands	Thirteen Weeks Ended May 3, 2015			Thirteen Weeks Ended May 4, 2014
Net loss recognized in OCI	$	(513	)	$	(224	)
Net gain reclassified from OCI into cost of goods sold	$	268		$	233
Net foreign exchange gain (loss) recognized in other income (expense):
Instruments designated as cash flow hedges1	$	(16	)	$	(34	)
Instruments not designated or de-designated2	$	382		$	584

¹  Changes in fair value of the forward contract related to interest charges or “forward points.”

²  Changes in fair value subsequent to de-designation for instruments no longer designated as cash flow hedges, and changes in fair value related to instruments not designated as cash flow hedges.

The fair values of our derivative financial instruments are presented below. All fair values for these derivatives were measured using Level 2 inputs as defined by the fair value hierarchy described in Note H.

In thousands	Balance sheet location	May 3, 2015			May 4, 2014
Derivatives designated as hedging instruments:
Cash flow hedge foreign currency forward contracts	Other current assets	$	283		$	112
Cash flow hedge foreign currency forward contracts	Other current liabilities		(426	)		(147	)
Total, net		$	(143	)	$	(35	)
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets	$	262		$	72
Total, net		$	262		$	72

10

We record all derivative assets and liabilities on a gross basis. They do not meet the balance sheet netting criteria as discussed in ASC 210, Balance Sheet, because we do not have master netting agreements established with our derivative counterparties that would allow for net settlement.

Amounts recorded within accumulated other comprehensive income (“AOCI”) associated with our derivative instruments, pre-tax, were as follows:

In thousands	Thirteen Weeks Ended May 3, 2015			Thirteen Weeks Ended May 4, 2014
AOCI beginning balance amount of gain (loss)	$	1,321		$	741
Amounts recognized in OCI before reclassifications		(513	)		(224	)
Amounts reclassified from OCI to cost of goods sold		(268	)		(233	)
AOCI ending balance amount of gain (loss)	$	540		$	284

NOTE H. FAIR VALUE MEASUREMENTS

Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

We determine the fair value of financial and non-financial assets and liabilities using the fair value hierarchy established by ASC 820, Fair Value Measurement, which defines three levels of inputs that may be used to measure fair value, as follows:

• Level 1: inputs which include quoted prices in active markets for identical assets or liabilities;

• Level 2: inputs which include observable inputs other than Level 1 inputs, such as quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability; and

• Level 3: inputs which include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability.

The fair values of our cash and cash equivalents are based on Level 1 inputs, which include quoted prices in active markets for identical assets.

Foreign Currency Derivatives and Hedging Instruments

We use the income approach to value our derivatives using observable Level 2 market data at the measurement date and standard valuation techniques to convert future amounts to a single present value amount, assuming that participants are motivated but not compelled to transact. Level 2 inputs are limited to quoted prices that are observable for the assets and liabilities, which include interest rates and credit risk ratings. We use mid-market pricing as a practical expedient for fair value measurements. Key inputs for currency derivatives are the spot rates, forward rates, interest rates and credit derivative market rates.

The counterparties associated with our foreign currency forward contracts are large credit-worthy financial institutions, and the derivatives transacted with these entities are relatively short in duration, therefore, we do not consider counterparty concentration and non-performance to be material risks at this time. Both we and our counterparties are expected to perform under the contractual terms of the instruments. None of the derivative contracts entered into are subject to credit risk-related contingent features or collateral requirements.

There were no transfers between Level 1 and Level 2 categories during the thirteen weeks ended May 3, 2015.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or are proven incorrect, could cause our business and results of operations to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include statements related to: our beliefs regarding the resolution of current lawsuits, claims and proceedings; our three year stock repurchase program; our expectations regarding our cash flow hedges and foreign currency risks; our planned use of cash; our compliance with our financial covenants; our belief that our cash on-hand, in addition to our available credit facilities, will provide adequate liquidity for our business operations over the next 12 months; and our beliefs regarding seasonal patterns associated with our business, as well as statements of belief and statements of assumptions underlying any of the foregoing. You can identify these and other forward-looking statements by the use of words such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “intends,” “potential,” “continue,” or the negative of such terms, or other comparable terminology. The risks, uncertainties and assumptions referred to above that could cause our results to differ materially from the results expressed or implied by such forward-looking statements include, but are not limited to, those discussed under the heading “Risk Factors” in this document and our Annual Report on Form 10-K for the year ended February 1, 2015, and the risks, uncertainties and assumptions discussed from time to time in our other public filings and public announcements. All forward-looking statements included in this document are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.

OVERVIEW

Williams-Sonoma, Inc. is a specialty retailer of high-quality products for the home. These products, representing distinct merchandise strategies – Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, PBteen, Williams-Sonoma Home, Rejuvenation, and Mark and Graham – are marketed through e-commerce websites, direct mail catalogs and 603 stores. We have retail and/or e-commerce businesses in the U.S., Canada, Australia and the United Kingdom, and ship our products to customers worldwide. Our catalogs reach customers throughout the U.S. and Australia. In addition, we have unaffiliated franchisees that operate stores in the Middle East and the Philippines.

The following discussion and analysis of financial condition, results of operations, and liquidity and capital resources for the thirteen weeks ended May 3, 2015 (“first quarter of fiscal 2015”), as compared to the thirteen weeks ended May 4, 2014 (“first quarter of fiscal 2014”), should be read in conjunction with our Condensed Consolidated Financial Statements and the notes thereto.

All explanations of changes in operational results are discussed in order of their magnitude.

First Quarter of Fiscal 2015 Financial Results

In the first quarter of fiscal 2015, our net revenues increased 5.8% to $1,030,676,000, compared to $974,330,000 in the first quarter of fiscal 2014, with comparable brand revenue growth of 4.6%. Diluted earnings per share in the first quarter of both fiscal 2015 and fiscal 2014 was $0.48. We returned $84,496,000 to our stockholders through stock repurchases and dividends during the first quarter of fiscal 2015.

E-commerce net revenues in the first quarter of fiscal 2015 increased $41,284,000, or 8.4%, compared to the first quarter of fiscal 2014, with increases across all brands. E-commerce net revenues generated 52% of our total company net revenues in the first quarter of fiscal 2015 compared to 50% in the first quarter of fiscal 2014.

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Retail net revenues in the first quarter of fiscal 2015 increased $15,062,000, or 3.1% compared to the first quarter of fiscal 2014, primarily driven by West Elm and our international franchise operations.

In Pottery Barn, our largest brand, comparable brand revenues increased 2.4% in the first quarter of fiscal 2015 on top of an increase of 9.7% in the first quarter of fiscal 2014. These results were driven by our outdoor furniture and textile collections but were negatively impacted by lower inventory levels associated with the prolonged west coast port disruption. In the Williams-Sonoma brand, comparable brand revenues increased 2.7% in the first quarter of fiscal 2015 compared to the first quarter of fiscal 2014. We saw growth across many of our core categories, including cookware, cutlery, tabletop, glassware and dinnerware, as well as our Williams-Sonoma Home business. In West Elm, comparable brand revenues increased 15.3% in the first quarter of fiscal 2015 on top of 18.8% in the first quarter of fiscal 2014. Growth continued to be broad-based across categories. In Pottery Barn Kids, comparable brand revenues grew by 0.8% in the first quarter of fiscal 2015 compared to the first quarter of fiscal 2014. Our net revenues were impacted by out-of-stock positions in key categories resulting from the west coast port disruption. In PBteen, comparable brand revenues increased 3.0% in the first quarter of fiscal 2015 on top of 12.0% in the first quarter of fiscal 2014. High backorders impacted the brand early in the quarter from lower levels of inventory associated with the west coast port disruption, but we saw an improved flow of inventory in the latter half of the quarter.

Results of Operations

NET REVENUES

Net revenues consist of e-commerce net revenues and retail net revenues. E-commerce net revenues include sales of merchandise to customers through our e-commerce websites and our catalogs, as well as shipping fees. Retail net revenues include sales of merchandise to customers at our retail stores, as well as shipping fees on any products shipped to our customers’ homes. Shipping fees consist of revenue received from customers for delivery of merchandise to their homes. Revenues are presented net of sales returns and other discounts.

The following table summarizes our net revenues for the first quarter of fiscal 2015 and fiscal 2014:

	Thirteen Weeks Ended
In thousands	May 3, 2015		% Total			May 4, 2014		% Total
E-commerce net revenues	$	532,573		51.7	%	$	491,289		50.4	%
Retail net revenues		498,103		48.3	%		483,041		49.6	%
Net revenues	$	1,030,676		100.0	%	$	974,330		100.0	%

Net revenues in the first quarter of fiscal 2015 increased by $56,346,000, or 5.8%, compared to the first quarter of fiscal 2014, with comparable brand revenue growth of 4.6%. This increase was driven by growth across all brands led by West Elm and Pottery Barn.

Comparable Brand Revenue Growth

Comparable brand revenues include retail comparable store sales and e-commerce sales, as well as shipping fees, sales returns and other discounts associated with current period sales. Outlet comparable store net revenues are included in their respective brands. Comparable brand revenues exclude sales from certain operations until such time that we believe those sales are meaningful to evaluating the performance of the brand. Sales related to our international franchised stores have also been excluded as they are not operated by us.

Comparable stores are defined as permanent stores where gross square footage did not change by more than 20% in the previous 12 months and which have been open for at least 12 consecutive months without closure for seven or more consecutive days.

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	Thirteen Weeks Ended
Comparable brand revenue growth	May 3, 2015			May 4, 2014
Pottery Barn		2.4	%		9.7	%
Williams-Sonoma		2.7	%		6.0	%
West Elm		15.3	%		18.8	%
Pottery Barn Kids		0.8	%		8.1	%
PBteen		3.0	%		12.0	%
Total		4.6	%		10.0	%

E-COMMERCE NET REVENUES

	Thirteen Weeks Ended
In thousands	May 3, 2015			May 4, 2014
E-commerce net revenues	$	532,573		$	491,289
E-commerce net revenue growth		8.4	%		17.2	%

E-commerce net revenues in the first quarter of fiscal 2015 increased $41,284,000, or 8.4%, compared to the first quarter of fiscal 2014, with increases across all brands. E-commerce net revenues generated 52% of our total company net revenues in the first quarter of fiscal 2015 compared to 50% in the first quarter of fiscal 2014.

RETAIL NET REVENUES AND OTHER DATA

	Thirteen Weeks Ended
In thousands	May 3, 2015			May 4, 2014
Retail net revenues	$	498,103		$	483,041
Retail net revenue growth		3.1	%		3.1	%
Store count—beginning of year		601			585
Store openings		5			7
Store closings		(3	)		(3	)
Store count—end of period		603			589
Store selling square footage at period-end		3,709,000			3,600,000
Store leased square footage (“LSF”) at period-end		5,998,000			5,850,000

	Store Count											Avg. LSF Per Store
	February 1, 2015		Openings		Closings			May 3, 2015		May 4, 2014		May 3, 2015		May 4, 2014
Williams-Sonoma		243		—		(2	)		241		248		6,600		6,600
Pottery Barn		199		—		(1	)		198		195		13,700		13,800
Pottery Barn Kids		85		2		—			87		84		7,500		7,700
West Elm		69		3		—			72		58		13,600		14,100
Rejuvenation		5		—		—			5		4		10,000		13,200
Total		601		5		(3	)		603		589		9,900		9,900

Retail net revenues in the first quarter of fiscal 2015 increased $15,062,000, or 3.1%, compared to the first quarter of fiscal 2014, primarily driven by West Elm and our international franchise operations.

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COST OF GOODS SOLD

	Thirteen Weeks Ended
In thousands	May 3, 2015		% Net Revenues			May 4, 2014		% Net Revenues
Cost of goods sold1	$	651,835		63.2	%	$	605,922		62.2	%

¹ Includes total occupancy expenses of $151,451,000 and $146,439,000 for the first quarter of fiscal 2015 and the first quarter of fiscal 2014, respectively.

Cost of goods sold includes cost of goods, occupancy expenses and shipping costs. Cost of goods consists of cost of merchandise, inbound freight to our stores and distribution centers and other inventory related costs such as shrinkage, damages and replacements. Occupancy expenses consist of rent, depreciation and other occupancy costs, including common area maintenance, property taxes and utilities. Shipping costs consist of third party delivery services and shipping materials.

Our classification of expenses in cost of goods sold may not be comparable to other public companies, as we do not include non-occupancy related costs associated with our distribution network in cost of goods sold. These costs, which include distribution network employment, third party warehouse management and other distribution related administrative expenses, are recorded in selling, general and administrative expenses.

Within our reportable segments, the e-commerce channel does not incur freight-to-store or store occupancy expenses, and typically operates with lower markdowns and inventory shrinkage than the retail channel. However, the e-commerce channel incurs higher customer shipping, damage and replacement costs than the retail channel.

First Quarter of Fiscal 2015 vs. First Quarter of Fiscal 2014

Cost of goods sold increased by $45,913,000, or 7.6%, in the first quarter of fiscal 2015 compared to the first quarter of fiscal 2014. Cost of goods sold as a percentage of net revenues increased to 63.2% in the first quarter of fiscal 2015 from 62.2% in the first quarter of fiscal 2014. This increase was driven by lower selling margins primarily from increased shipping and fulfillment-related costs associated with the west coast port disruption, partially offset by the leverage of occupancy expenses.

In the e-commerce channel, cost of goods sold as a percentage of net revenues increased in the first quarter of fiscal 2015 compared to the first quarter of fiscal 2014 driven by lower selling margins from increased shipping costs, partially offset by the leverage of occupancy expenses.

In the retail channel, cost of goods sold as a percentage of net revenues increased in the first quarter of fiscal 2015 compared to the first quarter of fiscal 2014 primarily driven by lower selling margins, partially offset by the leverage of occupancy expenses.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

	Thirteen Weeks Ended
In thousands	May 3, 2015		% Net Revenues			May 4, 2014		% Net Revenues
Selling, general and administrative expenses	$	306,913		29.8	%	$	294,082		30.2	%

Selling, general and administrative expenses consist of non-occupancy related costs associated with our retail stores, distribution warehouses, customer care centers, supply chain operations (buying, receiving and inspection) and corporate administrative functions. These costs include employment, advertising, third party credit card processing and other general expenses.

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We experience differing employment and advertising costs as a percentage of net revenues within the retail and e-commerce channels due to their distinct distribution and marketing strategies. Store employment costs represent a greater percentage of retail net revenues than e-commerce employment costs as a percentage of e-commerce net revenues. However, advertising expenses are higher within the e-commerce channel than in the retail channel.

First Quarter of Fiscal 2015 vs. First Quarter of Fiscal 2014

Selling, general and administrative expenses increased by $12,831,000, or 4.4%, in the first quarter of fiscal 2015 compared to the first quarter of fiscal 2014. Selling, general and administrative expenses as a percentage of net revenues decreased to 29.8% in the first quarter of fiscal 2015 from 30.2% in the first quarter of fiscal 2014. This decrease as a percentage of net revenues was primarily driven by advertising efficiencies and the leverage of employment costs.

In the e-commerce channel, selling, general and administrative expenses as a percentage of net revenues decreased in the first quarter of fiscal 2015 compared to the first quarter of fiscal 2014 primarily driven by advertising efficiencies and the leverage of employment costs.

In the retail channel, selling, general and administrative expenses as a percentage of net revenues remained flat in the first quarter of fiscal 2015 compared to the first quarter of fiscal 2014.

INCOME TAXES

The effective tax rate was 37.7% for the first quarter of fiscal 2015 and 37.9% for the first quarter of fiscal 2014.

LIQUIDITY AND CAPITAL RESOURCES

As of May 3, 2015, we held $78,851,000 in cash and cash equivalents, the majority of which is held in demand deposit accounts, of which $68,311,000 was held by our foreign subsidiaries. As is consistent within our industry, our cash balances are seasonal in nature, with the fourth quarter historically representing a significantly higher level of cash than other periods.

In fiscal 2015, we plan to use our cash resources to fund our inventory and inventory related purchases, advertising and marketing initiatives, stock repurchases, dividend payments and purchases of property and equipment. In addition to our cash balances on hand, we have a $500,000,000 unsecured revolving line of credit (“credit facility”) that may be used to borrow revolving loans or to request the issuance of letters of credit. We may, upon notice to the administrative agent, request existing or new lenders to increase the credit facility by up to $250,000,000, at such lenders’ option, to provide for a total of $750,000,000 of unsecured revolving credit. During the first quarter of fiscal 2015, we borrowed $60,000,000 under the credit facility, all of which was outstanding as of May 3, 2015. During the first quarter of fiscal 2014, we had no borrowings under the credit facility.

As of May 3, 2015, issued but undrawn standby letters of credit totaling $15,294,000 were outstanding under the credit facility. Additionally, as of May 3, 2015, we had three unsecured letter of credit reimbursement facilities for a total of $70,000,000, of which an aggregate of $7,578,000 was outstanding. These letter of credit facilities represent only a future commitment to fund inventory purchases to which we had not taken legal title. We are currently in compliance with all of our financial covenants under the credit facility and, based on our current projections, we expect to remain in compliance throughout fiscal 2015. We believe our cash on hand, in addition to our available credit facilities, will provide adequate liquidity for our business operations over the next 12 months.

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Cash Flows from Operating Activities

For the first quarter of fiscal 2015, net cash used in operating activities was $67,071,000 compared to $70,329,000 for the first quarter of fiscal 2014. For the first quarter of fiscal 2015, net cash used in operating activities was primarily attributable to a decrease in accrued liabilities and accounts payable, as well as an increase in merchandise inventories, partially offset by net earnings adjusted for non-cash items. Net cash used compared to the first quarter of fiscal 2014 decreased primarily due to a decrease in income taxes paid, as well as a decrease in prepaid expenses, partially offset by an increase in merchandise inventories.

Cash Flows from Investing Activities

For the first quarter of fiscal 2015, net cash used in investing activities was $40,379,000 compared to $37,986,000 for the first quarter of fiscal 2014, and was primarily attributable to purchases of property and equipment. Net cash used compared to the first quarter of fiscal 2014 increased primarily due to an increase in purchases of property and equipment.

Cash Flows from Financing Activities

For the first quarter of fiscal 2015, net cash used in financing activities was $35,670,000 compared to $108,568,000 for the first quarter of fiscal 2014. For the first quarter of fiscal 2015, net cash used in financing activities was primarily attributable to repurchases of common stock and the payment of dividends, partially offset by borrowings under our revolving line of credit. Net cash used compared to the first quarter of fiscal 2014 decreased primarily due to an increase in borrowings under our revolving line of credit in 2015 and a decrease in tax withholdings related to stock-based awards.

Stock Repurchase Program and Dividend

See Note F to our Condensed Consolidated Financial Statements, Stock Repurchase Program and Dividend, within Item 1 of this Quarterly Report on Form 10-Q for further information.

Critical Accounting Policies

Management’s Discussion and Analysis of Financial Condition and Results of Operations is based on our Condensed Consolidated Financial Statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. The estimates and assumptions are evaluated on an ongoing basis and are based on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results may differ significantly from these estimates. During the first quarter of fiscal 2015, there have been no significant changes to the critical accounting policies discussed in our Annual Report on Form 10-K for the year ended February 1, 2015.

Seasonality

Our business is subject to substantial seasonal variations in demand. Historically, a significant portion of our revenues and net earnings have been realized during the period from October through January, and levels of net revenues and net earnings have typically been lower during the period from February through September. We believe this is the general pattern associated with the retail industry. In anticipation of our holiday selling season, we hire a substantial number of additional temporary employees in our retail stores, customer care centers and distribution centers, and incur significant fixed catalog production and mailing costs.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risks, which include significant deterioration of the U.S. and foreign markets, changes in U.S. interest rates, foreign currency exchange rates, including the devaluation of the U.S. dollar, and the effects of economic uncertainty which may affect the prices we pay our vendors in the foreign countries in which we do business. We do not engage in financial transactions for trading or speculative purposes.

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Interest Rate Risk

Our line of credit facility has a variable interest rate which, when drawn upon, subjects us to risks associated with changes in that interest rate. As of May 3, 2015, we had borrowings of $60,000,000 outstanding under our credit facility. A hypothetical increase or decrease of one percentage point on our existing variable rate debt instrument would not materially affect our results from operations or cash flows.

In addition, we have fixed and variable income investments consisting of short-term investments classified as cash and cash equivalents, which are also affected by changes in market interest rates. As of May 3, 2015, our investments, made primarily in demand deposit accounts, are stated at cost and approximate their fair values.

Foreign Currency Risks

We purchase a significant amount of inventory from vendors outside of the U.S. in transactions that are denominated in U.S. dollars. Approximately 2% of our international purchase transactions are in currencies other than the U.S. dollar, primarily the euro. Any foreign currency impact related to these international purchase transactions was not significant to us during the first quarter of fiscal 2015 or the first quarter of fiscal 2014. Since we pay for the majority of our international purchases in U.S. dollars, however, a decline in the U.S. dollar relative to other foreign currencies would subject us to risks associated with increased purchasing costs from our vendors in their effort to offset any lost profits associated with any currency devaluation. We cannot predict with certainty the effect these increased costs may have on our financial statements or results of operations.

In addition, our retail and/or e-commerce businesses in Canada, Australia and the United Kingdom, and our operations throughout Asia and Europe, expose us to market risk associated with foreign currency exchange rate fluctuations. Substantially all of our purchases and sales are denominated in U.S. dollars, which limits our exposure to this risk. While the impact of foreign currency exchange rate fluctuations was not material to us in the first quarter of fiscal 2015, we have continued to see volatility in the exchange rates in the countries in which we do business. As we continue to expand globally, the foreign currency exchange risk related to the transactions of our foreign subsidiaries may increase. To mitigate this risk, we hedge a portion of our foreign currency exposure with foreign currency forward contracts in accordance with our risk management policies (see Note G to our Consolidated Financial Statements).

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of May 3, 2015, an evaluation was performed by management, with the participation of our Chief Executive Officer (“CEO”) and our Chief Financial Officer (“CFO”), of the effectiveness of our disclosure controls and procedures. Based on that evaluation, our management, including our CEO and CFO, concluded that our disclosure controls and procedures are effective to ensure that information we are required to disclose in reports that we file or submit under the Securities Exchange Act of 1934 is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow for timely discussions regarding required disclosures, and that such information is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.

Changes in Internal Control Over Financial Reporting

There was no change in our internal control over financial reporting that occurred during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Information required by this Item is contained in Note E to our Condensed Consolidated Financial Statements within Part I of this Form 10-Q.

ITEM 1A. RISK FACTORS

See Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended February 1, 2015 for a description of the risks and uncertainties associated with our business. There were no material changes to such risk factors in the current quarterly reporting period.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table provides information as of May 3, 2015 with respect to shares of common stock we repurchased during the first quarter of fiscal 2015. For additional information, please see Note F to our Condensed Consolidated Financial Statements within Part I of this Form 10-Q.

Fiscal period	Total Number of Shares Purchased1		Average Price Paid Per Share		Total Number of Shares Purchased as Part of a Publicly Announced Program		Maximum Dollar Value of Shares That May Yet Be Purchased Under the Program
February 2, 2015 to March 1, 2015		104,100	$	80.21		104,100	$	278,495,000
March 2, 2015 to March 29, 2015		214,499	$	79.84		214,499	$	261,369,000
March 30, 2015 to May 3, 2015		345,803	$	78.33		345,803	$	234,283,000
Total		664,402	$	79.11		664,402	$	234,283,000

¹ In March 2013, our Board of Directors announced a $750,000,000 stock repurchase program. Stock repurchases under this program may be made through open market and privately negotiated transactions at times and in such amounts as management deems appropriate. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, capital availability and other market conditions. This stock repurchase program does not have an expiration date and may be limited or terminated at any time without prior notice.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS

(a) Exhibits

Exhibit Number	Exhibit Description
31.1	Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended
31.2	Certification of Chief Financial Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended
32.1	Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

WILLIAMS-SONOMA, INC.
By:	/s/ Julie P. Whalen
	Julie P. Whalen
	Chief Financial Officer

Date: June 12, 2015

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Laura J. Alber, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Williams-Sonoma, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: June 12, 2015

By:	/s/ Laura J. Alber
	Laura J. Alber
	Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Julie P. Whalen, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Williams-Sonoma, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: June 12, 2015

By:	/s/ Julie P. Whalen
	Julie P. Whalen Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION BY CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the period ended May 3, 2015 of Williams-Sonoma, Inc. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Laura J. Alber, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods presented in the Report.

By:	/s/ Laura J. Alber
	Laura J. Alber
	Chief Executive Officer

Date: June 12, 2015

EX-32.2

Exhibit 32.2

CERTIFICATION BY CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the period ended May 3, 2015 of Williams-Sonoma, Inc. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Julie P. Whalen, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods presented in the Report.

By:	/s/ Julie P. Whalen
	Julie P. Whalen
	Chief Financial Officer

Date: June 12, 2015

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Fair Value of Derivatives as Defined by Accounting Standard (Detail) (USD $) In Thousands, unless otherwise specified	May 03, 2015	May 04, 2014
Derivatives, Fair Value [Line Items]
Cash flow hedge foreign currency forward contracts - Other Current Assets	$ 283	$ 112
Cash flow hedge foreign currency forward contracts - Other Current Liabilities	(426)	(147)
Total, net	(143)	(35)
Foreign currency forward contracts - Other Current Assets	262	72
Total, net	$ 262	$ 72

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Earnings Per Share - Additional Information (Detail)	3 Months Ended
	May 03, 2015	May 04, 2014
Earnings Per Share [Line Items]
Anti-dilutive stock-based awards excluded from the computation of diluted earnings per share	0	160,000

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EARNINGS PER SHARE

3 Months Ended

May 03, 2015

EARNINGS PER SHARE

NOTE C. EARNINGS PER SHARE

Basic earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding and common stock equivalents for the period. Common stock equivalents consist of shares subject to stock-based awards with exercise prices less than or equal to the average market price of our common stock for the period, to the extent their inclusion would be dilutive.

The following is a reconciliation of net earnings and the number of shares used in the basic and diluted earnings per share computations:

In thousands, except per share amounts	Net Earnings		Weighted Average Shares		Earnings Per Share
Thirteen weeks ended May 3, 2015
Basic	$	44,790		91,707	$	0.49
Effect of dilutive stock-based awards				1,593
Diluted	$	44,790		93,300	$	0.48
Thirteen weeks ended May 4, 2014
Basic	$	46,162		93,993	$	0.49
Effect of dilutive stock-based awards				1,625
Diluted	$	46,162		95,618	$	0.48

There were no stock-based awards excluded from the computation of diluted earnings per share for the thirteen weeks ended May 3, 2015. Anti-dilutive stock-based awards outstanding were 160,000 as of May 4, 2014, and were excluded from the computation of diluted earnings per share.

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Stock Repurchase Programs and Dividends - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	May 03, 2015	May 04, 2014	Feb. 01, 2015
Stock Repurchase Program and Dividend [Line Items]
Common stock repurchased, shares	664,402	840,761
Common stock repurchased, average cost per share	$ 79.11	$ 63.41
Common stock repurchased, total cost	$ 52,562	$ 53,309
Treasure stock, value	$ 1,956	$ 2,889	$ 2,140
Cash dividend, per common share	$ 0.35	$ 0.33

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Segment Information (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	May 03, 2015	May 04, 2014
Segment Reporting Information [Line Items]
Net revenues	$ 54.8	$ 51.1
Long-term assets	$ 59.0	$ 59.8

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Derivative Financial Instruments - Additional Information (Detail) (USD $)	3 Months Ended
	May 03, 2015	May 04, 2014
Derivative [Line Items]
Reclassification from OCI to cost of goods sold	$ 540,000
Gain or loss recognized for cash flow hedges due to hedge ineffectiveness	$ 0	$ 0

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Foreign Currency Forward Contracts Outstanding (Detail) (Foreign Exchange Contract, USD $) In Thousands, unless otherwise specified	May 03, 2015		May 04, 2014
Derivatives designated as hedging instruments | Cash Flow Hedging | Canada, Dollars
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Exchange of foreign currency contracts	$ 20,400		$ 23,000
Not Designated as Hedging Instrument | Canada, Dollars
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Exchange of foreign currency contracts	0	[1]	1,500	[1]
Not Designated as Hedging Instrument | Australia, Dollars
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Exchange of foreign currency contracts	$ 26,000		$ 10,000

[1] These contracts are no longer designated as cash flow hedges as the related inventory purchases have occurred.

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STOCK-BASED COMPENSATION

3 Months Ended

May 03, 2015

STOCK-BASED COMPENSATION

NOTE B. STOCK-BASED COMPENSATION

Equity Award Programs

Our Amended and Restated 2001 Long-Term Incentive Plan (the “Plan”) provides for grants of incentive stock options, nonqualified stock options, stock-settled stock appreciation rights (collectively, “option awards”), restricted stock awards, restricted stock units (including those that are performance-based), deferred stock awards (collectively, “stock awards”) and dividend equivalents up to an aggregate of 25,760,000 shares. As of May 3, 2015, there were approximately 2,737,000 shares available for future grant under the plan. Subsequently, on May 29, 2015, our stockholders approved an amendment and restatement of the Plan to, among other things, increase the shares issuable by 6,550,000 shares and extend the term to 2025. Awards may be granted under the Plan to officers, employees and non-employee members of the board of directors of the company (the “Board”) or any parent or subsidiary. Shares issued as a result of award exercises or releases are primarily funded with the issuance of new shares.

Option Awards

Annual grants of option awards are limited to 1,000,000 shares on a per person basis and have a maximum term of seven years. The exercise price of these option awards is not less than 100% of the closing price of our stock on the day prior to the grant date. Option awards granted to employees generally vest over a period of four years for service-based awards. Certain option awards contain vesting acceleration clauses resulting from events including, but not limited to, retirement, merger or a similar corporate event.

Stock Awards

Annual grants of stock awards are limited to 400,000 shares on a per person basis. Stock awards granted to employees generally vest evenly over a period of four years for service-based awards. Certain performance-based awards, which have variable payout conditions based on predetermined financial targets, vest three years from the date of grant. Certain stock awards and other agreements contain vesting acceleration clauses resulting from events including, but not limited to, retirement, merger or a similar corporate event. Stock awards granted to non-employee Board members generally vest in one year. Non-employee Board members automatically receive stock awards on the date of their initial election to the Board and annually thereafter on the date of the annual meeting of stockholders (so long as they continue to serve as a non-employee Board member).

Stock-Based Compensation Expense

We measure and record stock-based compensation expense for all employee stock-based awards using a fair value method. During the thirteen weeks ended May 3, 2015 and May 4, 2014, we recognized total stock-based compensation expense, as a component of selling, general and administrative expenses, of $14,010,000 and $12,368,000, respectively.

Stock Options

The following table summarizes our stock option activity during the thirteen weeks ended May 3, 2015:

	Shares
Balance at February 1, 2015		107,000
Granted		0
Exercised		(47,737	)
Cancelled		0
Balance at May 3, 2015 (100% vested)		59,263

Stock-Settled Stock Appreciation Rights

The following table summarizes our stock-settled stock appreciation right activity during the thirteen weeks ended May 3, 2015:

	Shares
Balance at February 1, 2015		1,159,948
Granted		0
Converted into common stock		(160,350	)
Cancelled		(1,186	)
Balance at May 3, 2015		998,412
Vested at May 3, 2015		976,987
Vested plus expected to vest at May 3, 2015		991,233

Restricted Stock Units

The following table summarizes our restricted stock unit activity during the thirteen weeks ended May 3, 2015:

	Shares
Balance at February 1, 2015		2,313,477
Granted		729,536
Released		(545,484	)
Cancelled		(16,245	)
Balance at May 3, 2015		2,481,284
Vested plus expected to vest at May 3, 2015		1,720,829

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Effect of Derivative Instruments in Condensed Consolidated Financial Statements (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	May 03, 2015		May 04, 2014
Derivative [Line Items]
Net loss recognized in OCI	$ (513)		$ (224)
Net gain reclassified from OCI into cost of goods sold	268		233
Net foreign exchange gain (loss) recognized in other income (expense), Instruments designated as cash flow hedges	(16)	[1]	(34)	[1]
Net foreign exchange gain (loss) recognized in other income (expense), Instruments not designated or de-designated	$ 382	[2]	$ 584	[2]

[1] Changes in fair value of the forward contract related to interest charges or "forward points."

[2] Changes in fair value subsequent to de-designation for instruments no longer designated as cash flow hedges, and changes in fair value related to instruments not designated as cash flow hedges.

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Consolidated Statements of Earnings (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	May 03, 2015		May 04, 2014
Net revenues	$ 1,030,676	[1]	$ 974,330	[1]
Cost of goods sold	651,835		605,922
Gross profit	378,841		368,408
Selling, general and administrative expenses	306,913		294,082
Operating income	71,928		74,326
Interest (income) expense, net	8		(69)
Earnings before income taxes	71,920		74,395
Income taxes	27,130		28,233
Net earnings	$ 44,790		$ 46,162
Basic earnings per share	$ 0.49		$ 0.49
Diluted earnings per share	$ 0.48		$ 0.48
Shares used in calculation of earnings per share:
Basic	91,707		93,993
Diluted	93,300		95,618

[1] Includes net revenues of approximately $54.8 million and $51.1 million for the thirteen weeks ended May 3, 2015 and May 4, 2014, respectively, related to our foreign operations.

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	May 03, 2015	May 04, 2014
Cash flows from operating activities:
Net earnings	$ 44,790	$ 46,162
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	41,478	38,630
Loss on disposal/impairment of assets	1,694	644
Amortization of deferred lease incentives	(5,999)	(5,782)
Deferred income taxes	(5,498)	(4,649)
Tax benefit related to stock-based awards	20,572	43,223
Excess tax benefit related to stock-based awards	(8,724)	(21,371)
Stock-based compensation expense	14,010	12,368
Other	51	173
Changes in:
Accounts receivable	2,864	5,692
Merchandise inventories	(53,746)	(36,108)
Prepaid catalog expenses	(1,706)	(1,430)
Prepaid expenses and other assets	(21,439)	(41,951)
Accounts payable	(25,030)	(19,276)
Accrued salaries, benefits and other current and long-term liabilities	(51,387)	(48,164)
Customer deposits	(3,106)	5,216
Deferred rent and lease incentives	8,260	3,092
Income taxes payable	(24,155)	(46,798)
Net cash used in operating activities	(67,071)	(70,329)
Cash flows from investing activities:
Purchases of property and equipment	(40,384)	(38,119)
Other	5	133
Net cash used in investing activities	(40,379)	(37,986)
Cash flows from financing activities:
Borrowings under revolving line of credit	60,000	0
Repurchase of common stock	(52,562)	(53,309)
Payment of dividends	(31,934)	(32,891)
Tax withholdings related to stock-based awards	(21,734)	(46,730)
Excess tax benefit related to stock-based awards	8,724	21,371
Net proceeds related to stock-based awards	1,836	2,997
Other	0	(6)
Net cash used in financing activities	(35,670)	(108,568)
Effect of exchange rates on cash and cash equivalents	(956)	(368)
Net decrease in cash and cash equivalents	(144,076)	(217,251)
Cash and cash equivalents at beginning of period	222,927	330,121
Cash and cash equivalents at end of period	$ 78,851	$ 112,870

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Summary of Stock-Settled Stock Appreciation Right Activity (Detail) (Stock-Settled Stock Appreciation Rights)	3 Months Ended
	May 03, 2015
Stock-Settled Stock Appreciation Rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance at February 1, 2015 shares	1,159,948
Granted, shares	0
Converted into common stock, shares	(160,350)
Cancelled, shares	(1,186)
Balance at May 3, 2015 shares	998,412
Vested at May 3, 2015 shares	976,987
Vested plus expected to vest at May 3, 2015 shares	991,233

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Reconciliation of Net Earnings and Number of Shares Used in Basic and Diluted Earnings Per Share Computations (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	May 03, 2015	May 04, 2014
Earnings Per Share [Line Items]
Net Earnings, Basic	$ 44,790	$ 46,162
Net Earnings, Diluted	$ 44,790	$ 46,162
Weighted Average Shares, Basic	91,707	93,993
Weighted Average Shares, Effect of dilutive stock-based awards	1,593	1,625
Weighted Average Shares, Diluted	93,300	95,618
Earnings Per Share, Basic	$ 0.49	$ 0.49
Earnings Per Share, Diluted	$ 0.48	$ 0.48

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FINANCIAL STATEMENTS - BASIS OF PRESENTATION

3 Months Ended

May 03, 2015

FINANCIAL STATEMENTS - BASIS OF PRESENTATION

NOTE A. FINANCIAL STATEMENTS - BASIS OF PRESENTATION

These financial statements include Williams-Sonoma, Inc. and its wholly owned subsidiaries (“we,” “us” or “our”). The Condensed Consolidated Balance Sheets as of May 3, 2015 and May 4, 2014, the Condensed Consolidated Statements of Earnings, the Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Cash Flows for the thirteen weeks then ended, have been prepared by us, without audit. In our opinion, the financial statements include all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at the balance sheet dates and the results of operations for the thirteen weeks then ended. Intercompany transactions and accounts have been eliminated. The balance sheet as of February 1, 2015, presented herein, has been derived from our audited Consolidated Balance Sheet included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2015.

The results of operations for the thirteen weeks ended May 3, 2015 are not necessarily indicative of the operating results of the full year.

Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2015.

New Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, to clarify the principles of recognizing revenue and create common revenue recognition guidance between U.S. GAAP and International Financial Reporting Standards. This ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2016. We are currently assessing the potential impact of this ASU on our Condensed Consolidated Financial Statements.

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended
	May 03, 2015	May 04, 2014
Net earnings	$ 44,790	$ 46,162
Other comprehensive income (loss):
Foreign currency translation adjustments	867	1,398
Change in fair value of derivative financial instruments, net of tax	(379)	(298)
Reclassification adjustment for realized gains on derivative financial instruments, net of tax	(198)	(233)
Comprehensive income	$ 45,080	$ 47,029

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SEGMENT REPORTING (Tables)

3 Months Ended

May 03, 2015

Segment Information

Segment Information

In thousands	E-commerce		Retail		Unallocated			Total
Thirteen weeks ended May 3, 2015
Net revenues1	$	532,573	$	498,103	$	0		$	1,030,676
Depreciation and amortization expense		8,102		20,150		13,226			41,478
Operating income (loss)		127,574		28,126		(83,772	)		71,928
Assets2		610,976		1,053,039		587,074			2,251,089
Capital expenditures		3,936		19,928		16,520			40,384
Thirteen weeks ended May 4, 2014
Net revenues1	$	491,289	$	483,041	$	0		$	974,330
Depreciation and amortization expense		7,407		19,360		11,863			38,630
Operating income (loss)		121,136		30,196		(77,006	)		74,326
Assets2		547,077		988,659		632,364			2,168,100
Capital expenditures		9,477		14,700		13,942			38,119

¹  Includes net revenues of approximately $54.8 million and $51.1 million for the thirteen weeks ended May 3, 2015 and May 4, 2014, respectively, related to our foreign operations.

²  Includes long-term assets of approximately $59.0 million and $59.8 million as of May 3, 2015 and May 4, 2014, respectively, related to our foreign operations.

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Document and Entity Information	3 Months Ended
	May 03, 2015	May 31, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	May 03, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Trading Symbol	WSM
Entity Registrant Name	WILLIAMS SONOMA INC
Entity Central Index Key	0000719955
Current Fiscal Year End Date	--02-02
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		91,553,769

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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

May 03, 2015

Foreign Currency Forward Contracts Outstanding

As of May 3, 2015, and May 4, 2014, we had foreign currency forward contracts outstanding (in U.S. dollars) as follows:

In thousands	May 3, 2015		May 4, 2014
Contracts to sell Canadian dollars and buy U.S. dollars
Contracts designated as cash flow hedges	$	20,400	$	23,000
Contracts not designated as cash flow hedges 1	$	0	$	1,500
Contracts to sell Australian dollars and buy U.S. dollars
Contracts not designated as cash flow hedges	$	26,000	$	10,000

¹  These contracts are no longer designated as cash flow hedges as the related inventory purchases have occurred.

Effect of Derivative Instruments in Consolidated Financial Statements

The effect of derivative instruments in our Condensed Consolidated Financial Statements, pre-tax, was as follows:

In thousands	Thirteen Weeks Ended May 3, 2015			Thirteen Weeks Ended May 4, 2014
Net loss recognized in OCI	$	(513	)	$	(224	)
Net gain reclassified from OCI into cost of goods sold	$	268		$	233
Net foreign exchange gain (loss) recognized in other income (expense):
Instruments designated as cash flow hedges1	$	(16	)	$	(34	)
Instruments not designated or de-designated2	$	382		$	584

¹  Changes in fair value of the forward contract related to interest charges or “forward points.”

²  Changes in fair value subsequent to de-designation for instruments no longer designated as cash flow hedges, and changes in fair value related to instruments not designated as cash flow hedges.

Fair Values of Derivative Instruments

The fair values of our derivative financial instruments are presented below. All fair values for these derivatives were measured using Level 2 inputs as defined by the fair value hierarchy described in Note H.

In thousands	Balance sheet location	May 3, 2015			May 4, 2014
Derivatives designated as hedging instruments:
Cash flow hedge foreign currency forward contracts	Other current assets	$	283		$	112
Cash flow hedge foreign currency forward contracts	Other current liabilities		(426	)		(147	)
Total, net		$	(143	)	$	(35	)
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets	$	262		$	72
Total, net		$	262		$	72

Amounts Recorded within Accumulated Other Comprehensive Income Associated with Derivative Instruments

Amounts recorded within accumulated other comprehensive income (“AOCI”) associated with our derivative instruments, pre-tax, were as follows:

In thousands	Thirteen Weeks Ended May 3, 2015			Thirteen Weeks Ended May 4, 2014
AOCI beginning balance amount of gain (loss)	$	1,321		$	741
Amounts recognized in OCI before reclassifications		(513	)		(224	)
Amounts reclassified from OCI to cost of goods sold		(268	)		(233	)
AOCI ending balance amount of gain (loss)	$	540		$	284

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	May 03, 2015		Feb. 01, 2015	May 04, 2014
Current assets
Cash and cash equivalents	$ 78,851		$ 222,927	$ 112,870
Restricted cash	0		0	14,295
Accounts receivable, net	64,720		67,465	54,725
Merchandise inventories, net	942,800		887,701	850,416
Prepaid catalog expenses	35,648		33,942	34,986
Prepaid expenses	59,684		36,265	79,491
Deferred income taxes, net	130,889		130,618	121,443
Other assets	11,627		13,005	9,261
Total current assets	1,324,219		1,391,923	1,277,487
Property and equipment, net	876,785		883,012	837,012
Non-current deferred income taxes, net	0		4,265	0
Other assets, net	50,085		51,077	53,601
Total assets	2,251,089	[1]	2,330,277	2,168,100	[1]
Current liabilities
Accounts payable	367,525		397,037	369,279
Accrued salaries, benefits and other	87,067		136,012	88,796
Customer deposits	258,854		261,679	233,563
Borrowings under revolving line of credit	60,000		0	0
Income taxes payable	8,322		32,488	2,571
Current portion of long-term debt	1,968		1,968	1,785
Other liabilities	45,092		46,764	40,232
Total current liabilities	828,828		875,948	736,226
Deferred rent and lease incentives	170,528		166,925	158,339
Long-term debt	0		0	1,968
Non-current deferred income taxes, net	1,958		0	2,850
Other long-term obligations	63,143		62,698	60,425
Total liabilities	1,064,457		1,105,571	959,808
Commitments and contingencies
Stockholders' equity
Preferred stock: $.01 par value; 7,500 shares authorized; none issued	0		0	0
Common stock: $.01 par value; 253,125 shares authorized; 91,644, 91,891 and 94,184 shares issued and outstanding at May 3, 2015, February 1, 2015 and May 4, 2014, respectively	917		919	942
Additional paid-in capital	527,257		527,261	509,178
Retained earnings	662,671		701,214	693,670
Accumulated other comprehensive income (loss)	(2,257)		(2,548)	7,391
Treasury stock, at cost	(1,956)		(2,140)	(2,889)
Total stockholders' equity	1,186,632		1,224,706	1,208,292
Total liabilities and stockholders' equity	$ 2,251,089		$ 2,330,277	$ 2,168,100

[1] Includes long-term assets of approximately $59.0 million and $59.8 million as of May 3, 2015 and May 4, 2014, respectively, related to our foreign operations.

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STOCK REPURCHASE PROGRAM AND DIVIDEND

3 Months Ended

May 03, 2015

STOCK REPURCHASE PROGRAM AND DIVIDEND

NOTE F. STOCK REPURCHASE PROGRAM AND DIVIDEND

Stock Repurchase Program

During the thirteen weeks ended May 3, 2015, we repurchased 664,402 shares of our common stock at an average cost of $79.11 per share for a total cost of approximately $52,562,000. As of May 3, 2015, we held treasury stock of $1,956,000 which represents the cost of shares available for re-issuance to satisfy future stock-based award settlements in certain foreign jurisdictions.

During the thirteen weeks ended May 4, 2014, we repurchased 840,761 shares of our common stock at an average cost of $63.41 per share for a total cost of approximately $53,309,000.

Stock repurchases under this program may be made through open market and privately negotiated transactions at times and in such amounts as management deems appropriate. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, capital availability and other market conditions. This stock repurchase program does not have an expiration date and may be limited or terminated at any time without prior notice.

Dividend

We declared cash dividends of $0.35 and $0.33 per common share during the thirteen weeks ended May 3, 2015 and May 4, 2014, respectively.

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

May 03, 2015

COMMITMENTS AND CONTINGENCIES

NOTE E. COMMITMENTS AND CONTINGENCIES

We are involved in lawsuits, claims and proceedings incident to the ordinary course of our business. These disputes, which are not currently material, are increasing in number as our business expands and our company grows larger. We review the need for any loss contingency reserves and establish reserves when, in the opinion of management, it is probable that a matter would result in liability, and the amount of loss, if any, can be reasonably estimated. In view of the inherent difficulty of predicting the outcome of these matters, it may not be possible to determine whether any loss is probable or to reasonably estimate the amount of the loss until the case is close to resolution, in which case no reserve is established until that time. Any claims against us, whether meritorious or not, could be time consuming, result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources. The results of these lawsuits, claims and proceedings cannot be predicted with certainty. However, we believe that the ultimate resolution of these current matters will not have a material adverse effect on our consolidated financial statements taken as a whole.

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Summary of Restricted Stock Unit Activity (Detail) (Restricted Stock Units (RSUs))	3 Months Ended
	May 03, 2015
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance at February 1, 2015 shares	2,313,477
Granted, shares	729,536
Released, shares	(545,484)
Cancelled, shares	(16,245)
Balance at May 3, 2015 shares	2,481,284
Vested plus expected to vest at May 3, 2015 shares	1,720,829

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Stock-based Compensation - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		0 Months Ended
	May 03, 2015	May 04, 2014	May 29, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum term of grants of option awards, years	7 years
Stock-based compensation expense	$ 14,010	$ 12,368
Minimum | Non-Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of awards granted to employees, years	1 year
Equity Award Programs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares under the Plan	25,760,000
Shares available for future grant	2,737,000
Equity Award Programs | Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares increased for issuance			6,550,000
Extended term of plan			2025
Option Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards annual grant limit	1,000,000
Option Awards | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price as a percentage of closing price on the day prior to the grant date	100.00%
Service Based Option Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of awards granted to employees, years	4 years
Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards annual grant limit	400,000
Service Based Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of awards granted to employees, years	4 years
Performance Based Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of awards granted to employees, years	3 years

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STOCK-BASED COMPENSATION (Tables)

3 Months Ended

May 03, 2015

Summary of Stock Options Activity

The following table summarizes our stock option activity during the thirteen weeks ended May 3, 2015:

	Shares
Balance at February 1, 2015		107,000
Granted		0
Exercised		(47,737	)
Cancelled		0
Balance at May 3, 2015 (100% vested)		59,263

Summary of Stock-Settled Stock Appreciation Rights Activity

The following table summarizes our stock-settled stock appreciation right activity during the thirteen weeks ended May 3, 2015:

	Shares
Balance at February 1, 2015		1,159,948
Granted		0
Converted into common stock		(160,350	)
Cancelled		(1,186	)
Balance at May 3, 2015		998,412
Vested at May 3, 2015		976,987
Vested plus expected to vest at May 3, 2015		991,233

Summary of Restricted Stock Units Activity

The following table summarizes our restricted stock unit activity during the thirteen weeks ended May 3, 2015:

	Shares
Balance at February 1, 2015		2,313,477
Granted		729,536
Released		(545,484	)
Cancelled		(16,245	)
Balance at May 3, 2015		2,481,284
Vested plus expected to vest at May 3, 2015		1,720,829

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DERIVATIVE FINANCIAL INSTRUMENTS

3 Months Ended

May 03, 2015

DERIVATIVE FINANCIAL INSTRUMENTS

NOTE G. DERIVATIVE FINANCIAL INSTRUMENTS

We have retail and e-commerce businesses in Canada, Australia and the United Kingdom, and operations throughout Asia and Europe, which expose us to market risk associated with foreign currency exchange rate fluctuations. Substantially all of our purchases and sales are denominated in U.S. dollars, which limits our exposure to this risk. While the impact of foreign currency exchange rate fluctuations was not significant to us in the first quarter of fiscal 2015, we continue to see volatility in the exchange rates in the countries in which we do business. As we continue to expand globally, the foreign currency exchange risk related to the transactions of our foreign subsidiaries may increase. To mitigate this risk, we hedge a portion of our foreign currency exposure with foreign currency forward contracts in accordance with our risk management policies. We do not enter into such contracts for speculative purposes.

The assets or liabilities associated with the derivative instruments are measured at fair value and recorded in either other current assets or other current liabilities. As discussed below, the accounting for gains and losses resulting from changes in fair value depends on whether the derivative instrument is designated as a hedge and qualifies for hedge accounting in accordance with the Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging.

Cash Flow Hedges

We enter into foreign currency forward contracts designated as cash flow hedges for forecasted inventory purchases in U.S. dollars by our foreign subsidiaries. These hedges generally have terms of up to 12 months. All hedging relationships are formally documented, and the forward contracts are designed to mitigate foreign currency exchange risk on hedged transactions. We record the effective portion of changes in the fair value of our cash flow hedges in other comprehensive income (“OCI”) until the earlier of when the hedged forecasted inventory purchase occurs or the respective contract reaches maturity. Subsequently, as the inventory is sold to the customer, we reclassify amounts previously recorded in OCI to cost of goods sold. Changes in the fair value of the forward contract related to interest charges or “forward points” are excluded from the assessment and measurement of hedge effectiveness and are recorded immediately in other income (expense), net. Based on the rates in effect as of May 3, 2015, we expect to reclassify a net gain of approximately $540,000 from OCI to cost of goods sold over the next 12 months.

We also enter into non-designated foreign currency forward contracts to reduce the exchange risk associated with our assets and liabilities denominated in a foreign currency. Any foreign exchange gains (losses) related to these contracts are recognized in other income (expense), net.

As of May 3, 2015, and May 4, 2014, we had foreign currency forward contracts outstanding (in U.S. dollars) as follows:

In thousands	May 3, 2015		May 4, 2014
Contracts to sell Canadian dollars and buy U.S. dollars
Contracts designated as cash flow hedges	$	20,400	$	23,000
Contracts not designated as cash flow hedges 1	$	0	$	1,500
Contracts to sell Australian dollars and buy U.S. dollars
Contracts not designated as cash flow hedges	$	26,000	$	10,000

¹  These contracts are no longer designated as cash flow hedges as the related inventory purchases have occurred.

Hedge effectiveness is evaluated prospectively at inception, on an ongoing basis, as well as retrospectively using regression analysis. Any measureable ineffectiveness of the hedge is recorded in other income (expense), net. No gain or loss was recognized for cash flow hedges due to hedge ineffectiveness and all hedges were deemed effective for assessment purposes for the thirteen weeks ended May 3, 2015 and May 4, 2014.

The effect of derivative instruments in our Condensed Consolidated Financial Statements, pre-tax, was as follows:

In thousands	Thirteen Weeks Ended May 3, 2015			Thirteen Weeks Ended May 4, 2014
Net loss recognized in OCI	$	(513	)	$	(224	)
Net gain reclassified from OCI into cost of goods sold	$	268		$	233
Net foreign exchange gain (loss) recognized in other income (expense):
Instruments designated as cash flow hedges1	$	(16	)	$	(34	)
Instruments not designated or de-designated2	$	382		$	584

¹  Changes in fair value of the forward contract related to interest charges or “forward points.”

²  Changes in fair value subsequent to de-designation for instruments no longer designated as cash flow hedges, and changes in fair value related to instruments not designated as cash flow hedges.

The fair values of our derivative financial instruments are presented below. All fair values for these derivatives were measured using Level 2 inputs as defined by the fair value hierarchy described in Note H.

In thousands	Balance sheet location	May 3, 2015			May 4, 2014
Derivatives designated as hedging instruments:
Cash flow hedge foreign currency forward contracts	Other current assets	$	283		$	112
Cash flow hedge foreign currency forward contracts	Other current liabilities		(426	)		(147	)
Total, net		$	(143	)	$	(35	)
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets	$	262		$	72
Total, net		$	262		$	72

We record all derivative assets and liabilities on a gross basis. They do not meet the balance sheet netting criteria as discussed in ASC 210, Balance Sheet, because we do not have master netting agreements established with our derivative counterparties that would allow for net settlement.

Amounts recorded within accumulated other comprehensive income (“AOCI”) associated with our derivative instruments, pre-tax, were as follows:

In thousands	Thirteen Weeks Ended May 3, 2015			Thirteen Weeks Ended May 4, 2014
AOCI beginning balance amount of gain (loss)	$	1,321		$	741
Amounts recognized in OCI before reclassifications		(513	)		(224	)
Amounts reclassified from OCI to cost of goods sold		(268	)		(233	)
AOCI ending balance amount of gain (loss)	$	540		$	284

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FAIR VALUE MEASUREMENTS

3 Months Ended

May 03, 2015

FAIR VALUE MEASUREMENTS

NOTE H. FAIR VALUE MEASUREMENTS

Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

We determine the fair value of financial and non-financial assets and liabilities using the fair value hierarchy established by ASC 820, Fair Value Measurement, which defines three levels of inputs that may be used to measure fair value, as follows:

• Level 1: inputs which include quoted prices in active markets for identical assets or liabilities;

• Level 2: inputs which include observable inputs other than Level 1 inputs, such as quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability; and

• Level 3: inputs which include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability.

The fair values of our cash and cash equivalents are based on Level 1 inputs, which include quoted prices in active markets for identical assets.

Foreign Currency Derivatives and Hedging Instruments

We use the income approach to value our derivatives using observable Level 2 market data at the measurement date and standard valuation techniques to convert future amounts to a single present value amount, assuming that participants are motivated but not compelled to transact. Level 2 inputs are limited to quoted prices that are observable for the assets and liabilities, which include interest rates and credit risk ratings. We use mid-market pricing as a practical expedient for fair value measurements. Key inputs for currency derivatives are the spot rates, forward rates, interest rates and credit derivative market rates.

The counterparties associated with our foreign currency forward contracts are large credit-worthy financial institutions, and the derivatives transacted with these entities are relatively short in duration, therefore, we do not consider counterparty concentration and non-performance to be material risks at this time. Both we and our counterparties are expected to perform under the contractual terms of the instruments. None of the derivative contracts entered into are subject to credit risk-related contingent features or collateral requirements.

There were no transfers between Level 1 and Level 2 categories during the thirteen weeks ended May 3, 2015.

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EARNINGS PER SHARE (Tables)

3 Months Ended

May 03, 2015

Reconciliation of Net Earnings and Number of Shares Used In Basic and Diluted Earnings per Share Computations

The following is a reconciliation of net earnings and the number of shares used in the basic and diluted earnings per share computations:

In thousands, except per share amounts	Net Earnings		Weighted Average Shares		Earnings Per Share
Thirteen weeks ended May 3, 2015
Basic	$	44,790		91,707	$	0.49
Effect of dilutive stock-based awards				1,593
Diluted	$	44,790		93,300	$	0.48
Thirteen weeks ended May 4, 2014
Basic	$	46,162		93,993	$	0.49
Effect of dilutive stock-based awards				1,625
Diluted	$	46,162		95,618	$	0.48

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Amounts Recorded within Accumulated Other Comprehensive Income Associated with Derivative Instruments (Detail) (Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges, USD $) In Thousands, unless otherwise specified	3 Months Ended
	May 03, 2015	May 04, 2014
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
AOCI beginning balance amount of gain (loss)	$ 1,321	$ 741
Amounts recognized in OCI before reclassifications	(513)	(224)
Amounts reclassified from OCI to cost of goods sold	(268)	(233)
AOCI ending balance amount of gain (loss)	$ 540	$ 284

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Summary of Stock Option Activity (Parenthetical) (Detail)	3 Months Ended
	May 03, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested percentage	100.00%

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Segment Reporting - Additional Information (Detail)	3 Months Ended
	May 03, 2015 Segment
Segment Reporting Information [Line Items]
Number of reportable segments	2

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	May 03, 2015	Feb. 01, 2015	May 04, 2014
Preferred stock, par value	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized	7,500	7,500	7,500
Preferred stock, shares issued
Common stock, par value	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	253,125	253,125	253,125
Common stock, shares issued	91,644	91,891	94,184
Common stock, shares outstanding	91,644	91,891	94,184

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SEGMENT REPORTING

3 Months Ended

May 03, 2015

SEGMENT REPORTING

NOTE D. SEGMENT REPORTING

We have two reportable segments, e-commerce and retail. The e-commerce segment has the following merchandising strategies: Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, PBteen, Williams-Sonoma Home, Rejuvenation and Mark and Graham, which sell our products through our e-commerce websites and direct-mail catalogs. Our e-commerce merchandising strategies are operating segments, which have been aggregated into one reportable segment, e-commerce. The retail segment has the following merchandising strategies: Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm and Rejuvenation, which sell our products through our retail stores. Our retail merchandising strategies are operating segments, which have been aggregated into one reportable segment, retail. Our operating segments have had similar historical economic characteristics and it is management’s expectation that the operating segments will have similar long-term financial performance in the future.

These reportable segments are strategic business units that offer similar home-centered products. They are managed separately because the business units utilize two distinct distribution and marketing strategies. Based on management’s best estimate, our operating segments include allocations of certain expenses, including advertising and employment costs, to the extent they have been determined to benefit both channels. These operating segments are aggregated at the channel level for reporting purposes due to the fact that our brands are interdependent for economies of scale and we do not maintain fully allocated income statements at the brand level. As a result, material financial decisions related to the brands are made at the channel level. Furthermore, it is not practicable for us to report revenue by product group.

We use operating income to evaluate segment profitability. Operating income is defined as earnings (loss) before net interest income or expense and income taxes. Unallocated costs before interest and income taxes include employee-related costs, occupancy expenses (including depreciation expense), administrative costs and third party service costs, primarily in our corporate departments. Unallocated assets include corporate cash and cash equivalents, deferred income taxes, the net book value of corporate facilities and related information systems, and other corporate long-lived assets.

Income tax information by reportable segment has not been included as income taxes are calculated at a company-wide level and are not allocated to each reportable segment.

Segment Information

In thousands	E-commerce		Retail		Unallocated			Total
Thirteen weeks ended May 3, 2015
Net revenues1	$	532,573	$	498,103	$	0		$	1,030,676
Depreciation and amortization expense		8,102		20,150		13,226			41,478
Operating income (loss)		127,574		28,126		(83,772	)		71,928
Assets2		610,976		1,053,039		587,074			2,251,089
Capital expenditures		3,936		19,928		16,520			40,384
Thirteen weeks ended May 4, 2014
Net revenues1	$	491,289	$	483,041	$	0		$	974,330
Depreciation and amortization expense		7,407		19,360		11,863			38,630
Operating income (loss)		121,136		30,196		(77,006	)		74,326
Assets2		547,077		988,659		632,364			2,168,100
Capital expenditures		9,477		14,700		13,942			38,119

¹  Includes net revenues of approximately $54.8 million and $51.1 million for the thirteen weeks ended May 3, 2015 and May 4, 2014, respectively, related to our foreign operations.

²  Includes long-term assets of approximately $59.0 million and $59.8 million as of May 3, 2015 and May 4, 2014, respectively, related to our foreign operations.

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Segment Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	May 03, 2015		May 04, 2014		Feb. 01, 2015
Segment Reporting Information [Line Items]
Net revenues	$ 1,030,676	[1]	$ 974,330	[1]
Depreciation and amortization expense	41,478		38,630
Operating income (loss)	71,928		74,326
Assets	2,251,089	[2]	2,168,100	[2]	2,330,277
Capital expenditures	40,384		38,119
Operating Segments | E-commerce
Segment Reporting Information [Line Items]
Net revenues	532,573	[1]	491,289	[1]
Depreciation and amortization expense	8,102		7,407
Operating income (loss)	127,574		121,136
Assets	610,976	[2]	547,077	[2]
Capital expenditures	3,936		9,477
Operating Segments | Retail
Segment Reporting Information [Line Items]
Net revenues	498,103	[1]	483,041	[1]
Depreciation and amortization expense	20,150		19,360
Operating income (loss)	28,126		30,196
Assets	1,053,039	[2]	988,659	[2]
Capital expenditures	19,928		14,700
Unallocated
Segment Reporting Information [Line Items]
Net revenues	0	[1]	0	[1]
Depreciation and amortization expense	13,226		11,863
Operating income (loss)	(83,772)		(77,006)
Assets	587,074	[2]	632,364	[2]
Capital expenditures	$ 16,520		$ 13,942

[1] Includes net revenues of approximately $54.8 million and $51.1 million for the thirteen weeks ended May 3, 2015 and May 4, 2014, respectively, related to our foreign operations.

[2] Includes long-term assets of approximately $59.0 million and $59.8 million as of May 3, 2015 and May 4, 2014, respectively, related to our foreign operations.

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Summary of Stock Option Activity (Detail)	3 Months Ended
	May 03, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance at February 1, 2015, shares	107,000
Granted, shares	0
Exercised, shares	(47,737)
Cancelled, shares	0
Balance at May 3, 2015, shares	59,263