(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Title of each class: | Trading Symbol(s): | Name of each exchange on which registered: | ||||||||||||
(d) | List of Exhibits: | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
WILLIAMS-SONOMA, INC. | ||||||||
Date: May 23, 2023 | By: | /s/ Jeffrey E. Howie | ||||||
Jeffrey E. Howie | ||||||||
Chief Financial Officer |
For the Thirteen Weeks Ended | |||||||||||||||||||||||
April 30, 2023 | May 1, 2022 | ||||||||||||||||||||||
(In thousands, except per share amounts) | $ | % of Revenues | $ | % of Revenues | |||||||||||||||||||
Net revenues | $ | 1,755,451 | 100.0 | % | $ | 1,891,227 | 100.0 | % | |||||||||||||||
Cost of goods sold | 1,080,392 | 61.5 | 1,062,679 | 56.2 | |||||||||||||||||||
Gross profit | 675,059 | 38.5 | 828,548 | 43.8 | |||||||||||||||||||
Selling, general and administrative expenses | 475,582 | 27.1 | 505,067 | 26.7 | |||||||||||||||||||
Operating income | 199,477 | 11.4 | 323,481 | 17.1 | |||||||||||||||||||
Interest income, net | (5,498) | (0.3) | (163) | — | |||||||||||||||||||
Earnings before income taxes | 204,975 | 11.7 | 323,644 | 17.1 | |||||||||||||||||||
Income taxes | 48,444 | 2.8 | 69,531 | 3.7 | |||||||||||||||||||
Net earnings | $ | 156,531 | 8.9 | % | $ | 254,113 | 13.4 | % | |||||||||||||||
Earnings per share (EPS): | |||||||||||||||||||||||
Basic | $ | 2.38 | $ | 3.59 | |||||||||||||||||||
Diluted | $ | 2.35 | $ | 3.50 | |||||||||||||||||||
Shares used in calculation of EPS: | |||||||||||||||||||||||
Basic | 65,849 | 70,851 | |||||||||||||||||||||
Diluted | 66,696 | 72,652 |
1st Quarter Net Revenues and Comparable Brand Revenue Growth (Decline)1 | |||||||||||||||||||||||||||||
Net Revenues | Comparable Brand Revenue Growth (Decline) | ||||||||||||||||||||||||||||
(In millions, except percentages) | Q1 23 | Q1 22 | Q1 23 | Q1 22 | |||||||||||||||||||||||||
Pottery Barn | $ | 768 | $ | 775 | (0.4) | % | 14.6 | % | |||||||||||||||||||||
West Elm | 452 | 536 | (15.8) | 12.8 | |||||||||||||||||||||||||
Williams Sonoma | 239 | 252 | (4.4) | (2.2) | |||||||||||||||||||||||||
Pottery Barn Kids and Teen | 216 | 227 | (3.3) | (3.1) | |||||||||||||||||||||||||
Other2 | 80 | 101 | N/A | N/A | |||||||||||||||||||||||||
Total | $ | 1,755 | $ | 1,891 | (6.0) | % | 9.5 | % | |||||||||||||||||||||
1See the Company’s 10-K and 10-Q for the definition of comparable brand revenue, which is calculated on a 13-week basis, and includes business-to-business revenues. | |||||||||||||||||||||||||||||
2Primarily consists of net revenues from Rejuvenation, our international franchise operations, and Mark and Graham. | |||||||||||||||||||||||||||||
As of | |||||||||||||||||
(In thousands, except per share amounts) | April 30, 2023 | January 29, 2023 | May 1, 2022 | ||||||||||||||
Assets | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | $ | 297,291 | $ | 367,344 | $ | 324,835 | |||||||||||
Accounts receivable, net | 109,203 | 115,685 | 122,946 | ||||||||||||||
Merchandise inventories, net | 1,401,616 | 1,456,123 | 1,396,135 | ||||||||||||||
Prepaid expenses | 62,723 | 64,961 | 60,997 | ||||||||||||||
Other current assets | 27,993 | 31,967 | 23,939 | ||||||||||||||
Total current assets | 1,898,826 | 2,036,080 | 1,928,852 | ||||||||||||||
Property and equipment, net | 1,050,026 | 1,065,381 | 942,460 | ||||||||||||||
Operating lease right-of-use assets | 1,258,599 | 1,286,452 | 1,102,056 | ||||||||||||||
Deferred income taxes, net | 70,758 | 81,389 | 48,737 | ||||||||||||||
Goodwill | 77,330 | 77,307 | 85,298 | ||||||||||||||
Other long-term assets, net | 115,498 | 116,407 | 103,310 | ||||||||||||||
Total assets | $ | 4,471,037 | $ | 4,663,016 | $ | 4,210,713 | |||||||||||
Liabilities and stockholders' equity | |||||||||||||||||
Current liabilities | |||||||||||||||||
Accounts payable | $ | 629,561 | $ | 508,321 | $ | 642,619 | |||||||||||
Accrued expenses | 205,175 | 247,594 | 183,729 | ||||||||||||||
Gift card and other deferred revenue | 452,505 | 479,229 | 490,821 | ||||||||||||||
Income taxes payable | 87,680 | 61,204 | 126,270 | ||||||||||||||
Operating lease liabilities | 229,751 | 231,965 | 211,614 | ||||||||||||||
Other current liabilities | 97,144 | 108,138 | 88,587 | ||||||||||||||
Total current liabilities | 1,701,816 | 1,636,451 | 1,743,640 | ||||||||||||||
Long-term operating lease liabilities | 1,186,231 | 1,211,693 | 1,038,249 | ||||||||||||||
Other long-term liabilities | 116,165 | 113,821 | 119,080 | ||||||||||||||
Total liabilities | 3,004,212 | 2,961,965 | 2,900,969 | ||||||||||||||
Stockholders' equity | |||||||||||||||||
Preferred stock: $0.01 par value; 7,500 shares authorized, none issued | — | — | — | ||||||||||||||
Common stock: $0.01 par value; 253,125 shares authorized; 64,222, 66,226, and 69,219 shares issued and outstanding at April 30, 2023, January 29, 2023 and May 1, 2022, respectively | 643 | 663 | 693 | ||||||||||||||
Additional paid-in capital | 531,940 | 573,117 | 532,205 | ||||||||||||||
Retained earnings | 951,926 | 1,141,819 | 789,852 | ||||||||||||||
Accumulated other comprehensive loss | (16,258) | (13,809) | (12,267) | ||||||||||||||
Treasury stock, at cost | (1,426) | (739) | (739) | ||||||||||||||
Total stockholders' equity | 1,466,825 | 1,701,051 | 1,309,744 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 4,471,037 | $ | 4,663,016 | $ | 4,210,713 | |||||||||||
Retail Store Data (unaudited) | ||||||||||||||||||||||||||
Beginning of quarter | End of quarter | As of | ||||||||||||||||||||||||
January 29, 2023 | Openings | Closings | April 30, 2023 | May 1, 2022 | ||||||||||||||||||||||
Pottery Barn | 188 | — | — | 188 | 188 | |||||||||||||||||||||
Williams Sonoma | 165 | 2 | (2) | 165 | 175 | |||||||||||||||||||||
West Elm | 122 | 1 | — | 123 | 121 | |||||||||||||||||||||
Pottery Barn Kids | 46 | — | — | 46 | 52 | |||||||||||||||||||||
Rejuvenation | 9 | — | — | 9 | 9 | |||||||||||||||||||||
Total | 530 | 3 | (2) | 531 | 545 | |||||||||||||||||||||
For the Thirteen Weeks Ended | |||||||||||
(In thousands) | April 30, 2023 | May 1, 2022 | |||||||||
Cash flows from operating activities: | |||||||||||
Net earnings | $ | 156,531 | $ | 254,113 | |||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 55,602 | 50,251 | |||||||||
Loss on disposal/impairment of assets | 10,374 | 159 | |||||||||
Non-cash lease expense | 64,173 | 54,338 | |||||||||
Deferred income taxes | (1,656) | (2,725) | |||||||||
Tax benefit related to stock-based awards | 11,802 | 10,522 | |||||||||
Stock-based compensation expense | 23,446 | 28,542 | |||||||||
Other | (822) | (801) | |||||||||
Changes in: | |||||||||||
Accounts receivable | 6,256 | 8,741 | |||||||||
Merchandise inventories | 52,819 | (149,470) | |||||||||
Prepaid expenses and other assets | 6,668 | 13,517 | |||||||||
Accounts payable | 118,525 | 25,559 | |||||||||
Accrued expenses and other liabilities | (92,858) | (139,883) | |||||||||
Gift card and other deferred revenue | (26,315) | 42,924 | |||||||||
Operating lease liabilities | (68,497) | (58,025) | |||||||||
Income taxes payable | 26,478 | 46,757 | |||||||||
Net cash provided by operating activities | 342,526 | 184,519 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | (50,029) | (71,186) | |||||||||
Other | 148 | 86 | |||||||||
Net cash used in investing activities | (49,881) | (71,100) | |||||||||
Cash flows from financing activities: | |||||||||||
Repurchases of common stock | (300,000) | (501,075) | |||||||||
Payment of dividends | (58,079) | (58,150) | |||||||||
Tax withholdings related to stock-based awards | (4,348) | (78,508) | |||||||||
Net cash used in financing activities | (362,427) | (637,733) | |||||||||
Effect of exchange rates on cash and cash equivalents | (271) | (1,189) | |||||||||
Net decrease in cash and cash equivalents | (70,053) | (525,503) | |||||||||
Cash and cash equivalents at beginning of period | 367,344 | 850,338 | |||||||||
Cash and cash equivalents at end of period | $ | 297,291 | $ | 324,835 |
1st Quarter GAAP to Non-GAAP Reconciliation (unaudited) | |||||||||||||||||||||||
For the Thirteen Weeks Ended | |||||||||||||||||||||||
April 30, 2023 | May 1, 2022 | ||||||||||||||||||||||
(In thousands, except per share data) | $ | % of revenues | $ | % of revenues | |||||||||||||||||||
Occupancy costs | $ | 202,612 | 11.5 | % | $ | 186,406 | 9.9 | % | |||||||||||||||
Exit Costs1 | (239) | — | |||||||||||||||||||||
Non-GAAP occupancy costs | $ | 202,373 | 11.5 | % | $ | 186,406 | 9.9 | % | |||||||||||||||
Gross profit | $ | 675,059 | 38.5 | % | $ | 828,548 | 43.8 | % | |||||||||||||||
Exit Costs1 | 2,141 | — | |||||||||||||||||||||
Non-GAAP gross profit | $ | 677,200 | 38.6 | % | $ | 828,548 | 43.8 | % | |||||||||||||||
Selling, general and administrative expenses | $ | 475,582 | 27.1 | % | $ | 505,067 | 26.7 | % | |||||||||||||||
Exit Costs1 | (15,790) | — | |||||||||||||||||||||
Reduction-in-force Initiatives2 | (8,316) | — | |||||||||||||||||||||
Non-GAAP selling, general and administrative expenses | $ | 451,476 | 25.7 | % | $ | 505,067 | 26.7 | % | |||||||||||||||
Operating income | $ | 199,477 | 11.4 | % | $ | 323,481 | 17.1 | % | |||||||||||||||
Exit Costs1 | 17,931 | — | |||||||||||||||||||||
Reduction-in-force Initiatives2 | 8,316 | — | |||||||||||||||||||||
Non-GAAP operating income | $ | 225,724 | 12.9 | % | $ | 323,481 | 17.1 | % | |||||||||||||||
$ | Tax rate | $ | Tax rate | ||||||||||||||||||||
Income taxes | $ | 48,444 | 23.6 | % | $ | 69,531 | 21.5 | % | |||||||||||||||
Exit Costs1 | 4,690 | — | |||||||||||||||||||||
Reduction-in-force Initiatives2 | 2,174 | — | |||||||||||||||||||||
Non-GAAP income taxes | $ | 55,308 | 23.9 | % | $ | 69,531 | 21.5 | % | |||||||||||||||
Diluted EPS | $ | 2.35 | $ | 3.50 | |||||||||||||||||||
Exit Costs1 | 0.20 | — | |||||||||||||||||||||
Reduction-in-force Initiatives2 | 0.09 | — | |||||||||||||||||||||
Non-GAAP diluted EPS3 | $ | 2.64 | $ | 3.50 | |||||||||||||||||||
1During Q1 2023, we incurred exit costs of $17.9 million, including $9.3 million associated with the closure of our West Coast manufacturing facility and $8.6 million associated with the exiting of Aperture, a division of our Outward, Inc. subsidiary. | |||||||||||||||||||||||
2During Q1 2023, we incurred costs related to reduction-in-force initiatives of $8.3 million primarily in our corporate functions. | |||||||||||||||||||||||
3Per share amounts may not sum due to rounding to the nearest cent per diluted share. |
Cover |
May 23, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | May 23, 2023 |
Entity Registrant Name | Williams-Sonoma, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-14077 |
Entity Tax Identification Number | 94-2203880 |
Entity Address, Address Line One | 3250 Van Ness Avenue |
Entity Address, City or Town | San Francisco |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 94109 |
City Area Code | 415 |
Local Phone Number | 421-7900 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $.01 per share |
Trading Symbol | WSM |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Amendment Flag | false |
Entity Central Index Key | 0000719955 |
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