(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 | ||||||||
99.2 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
WILLIAMS-SONOMA, INC. | ||||||||
Date: March 13, 2024 | By: | /s/ Jeffrey E. Howie | ||||||
Jeffrey E. Howie | ||||||||
Chief Financial Officer |
For the Thirteen Weeks Ended | |||||||||||||||||||||||
January 28, 2024 | January 29, 2023 | ||||||||||||||||||||||
(In thousands, except per share amounts) | $ | % of Revenues | $ | % of Revenues | |||||||||||||||||||
Net revenues | $ | 2,278,937 | 100.0 | % | $ | 2,453,079 | 100.0 | % | |||||||||||||||
Cost of goods sold | 1,230,322 | 54.0 | 1,443,229 | 58.8 | |||||||||||||||||||
Gross profit | 1,048,615 | 46.0 | 1,009,850 | 41.2 | |||||||||||||||||||
Selling, general and administrative expenses | 590,524 | 25.9 | 540,063 | 22.0 | |||||||||||||||||||
Operating income | 458,091 | 20.1 | 469,787 | 19.2 | |||||||||||||||||||
Interest income, net | 13,147 | 0.6 | 1,383 | 0.1 | |||||||||||||||||||
Earnings before income taxes | 471,238 | 20.7 | 471,170 | 19.2 | |||||||||||||||||||
Income taxes | 116,799 | 5.1 | 116,177 | 4.7 | |||||||||||||||||||
Net earnings | $ | 354,439 | 15.6 | % | $ | 354,993 | 14.5 | % | |||||||||||||||
Earnings per share (EPS): | |||||||||||||||||||||||
Basic | $ | 5.53 | $ | 5.35 | |||||||||||||||||||
Diluted | $ | 5.44 | $ | 5.28 | |||||||||||||||||||
Shares used in calculation of EPS: | |||||||||||||||||||||||
Basic | 64,143 | 66,349 | |||||||||||||||||||||
Diluted | 65,147 | 67,201 |
4th Quarter Net Revenues and Comparable Brand Revenue Growth (Decline)1 | |||||||||||||||||||||||||||||
Net Revenues | Comparable Brand Revenue Growth (Decline) | ||||||||||||||||||||||||||||
(In millions, except percentages) | Q4 23 | Q4 22 | Q4 23 | Q4 22 | |||||||||||||||||||||||||
Pottery Barn | $ | 874 | $ | 967 | (9.6) | % | 5.8 | % | |||||||||||||||||||||
West Elm | 453 | 534 | (15.3) | (10.7) | |||||||||||||||||||||||||
Williams Sonoma | 524 | 524 | 1.6 | (2.5) | |||||||||||||||||||||||||
Pottery Barn Kids and Teen | 311 | 323 | (2.5) | 4.0 | |||||||||||||||||||||||||
Other2 | 117 | 105 | N/A | N/A | |||||||||||||||||||||||||
Total | $ | 2,279 | $ | 2,453 | (6.8) | % | (0.6) | % | |||||||||||||||||||||
1 See the Company’s 10-K and 10-Q filings for the definition of comparable brand revenue, which is calculated on a 13-week basis for Q4 2023 and Q4 2022, and includes business-to-business revenues. 2 Primarily consists of net revenues from Rejuvenation, our international franchise operations, Mark and Graham and GreenRow. |
For the Fiscal Year Ended | |||||||||||||||||||||||
January 28, 2024 | January 29, 2023 | ||||||||||||||||||||||
(In thousands, except per share amounts) | $ | % of Revenues | $ | % of Revenues | |||||||||||||||||||
Net revenues | $ | 7,750,652 | 100.0 | % | $ | 8,674,417 | 100.0 | % | |||||||||||||||
Cost of goods sold | 4,447,051 | 57.4 | 4,996,684 | 57.6 | |||||||||||||||||||
Gross profit | 3,303,601 | 42.6 | 3,677,733 | 42.4 | |||||||||||||||||||
Selling, general and administrative expenses | 2,059,408 | 26.6 | 2,179,311 | 25.1 | |||||||||||||||||||
Operating income | 1,244,193 | 16.1 | 1,498,422 | 17.3 | |||||||||||||||||||
Interest income, net | 29,162 | 0.4 | 2,260 | — | |||||||||||||||||||
Earnings before income taxes | 1,273,355 | 16.4 | 1,500,682 | 17.3 | |||||||||||||||||||
Income taxes | 323,593 | 4.2 | 372,778 | 4.3 | |||||||||||||||||||
Net earnings | $ | 949,762 | 12.3 | % | $ | 1,127,904 | 13.0 | % | |||||||||||||||
Earnings per share (EPS): | |||||||||||||||||||||||
Basic | $ | 14.71 | $ | 16.58 | |||||||||||||||||||
Diluted | $ | 14.55 | $ | 16.32 | |||||||||||||||||||
Shares used in calculation of EPS: | |||||||||||||||||||||||
Basic | 64,574 | 68,021 | |||||||||||||||||||||
Diluted | 65,272 | 69,100 |
Fiscal Year Net Revenues and Comparable Brand Revenue Growth (Decline)1 | |||||||||||||||||||||||||||||
Net Revenues | Comparable Brand Revenue Growth (Decline) | ||||||||||||||||||||||||||||
(In millions, except percentages) | FY 23 | FY 22 | FY 23 | FY 22 | |||||||||||||||||||||||||
Pottery Barn | $ | 3,206 | $ | 3,556 | (9.7) | % | 14.9 | % | |||||||||||||||||||||
West Elm | 1,855 | 2,278 | (18.8) | 2.5 | |||||||||||||||||||||||||
Williams Sonoma | 1,260 | 1,287 | (0.7) | (1.7) | |||||||||||||||||||||||||
Pottery Barn Kids and Teen | 1,060 | 1,133 | (5.5) | 0.4 | |||||||||||||||||||||||||
Other2 | 370 | 420 | N/A | N/A | |||||||||||||||||||||||||
Total | $ | 7,751 | $ | 8,674 | (9.9) | % | 6.5 | % | |||||||||||||||||||||
1 See the Company’s 10-K and 10-Q filings for the definition of comparable brand revenue, which is calculated on a 52-week basis for fiscal 2023 and fiscal 2022, and includes business-to-business revenues. 2 Primarily consists of net revenues from Rejuvenation, our international franchise operations, Mark and Graham and GreenRow. |
As of | |||||||||||
(In thousands, except per share amounts) | January 28, 2024 | January 29, 2023 | |||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 1,262,007 | $ | 367,344 | |||||||
Accounts receivable, net | 122,914 | 115,685 | |||||||||
Merchandise inventories, net | 1,246,369 | 1,456,123 | |||||||||
Prepaid expenses | 59,466 | 64,961 | |||||||||
Other current assets | 29,041 | 31,967 | |||||||||
Total current assets | 2,719,797 | 2,036,080 | |||||||||
Property and equipment, net | 1,013,189 | 1,065,381 | |||||||||
Operating lease right-of-use assets | 1,229,650 | 1,286,452 | |||||||||
Deferred income taxes, net | 110,656 | 81,389 | |||||||||
Goodwill | 77,306 | 77,307 | |||||||||
Other long-term assets, net | 122,950 | 116,407 | |||||||||
Total assets | $ | 5,273,548 | $ | 4,663,016 | |||||||
Liabilities and stockholders' equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 607,877 | $ | 508,321 | |||||||
Accrued expenses | 264,306 | 247,594 | |||||||||
Gift card and other deferred revenue | 573,904 | 479,229 | |||||||||
Income taxes payable | 96,554 | 61,204 | |||||||||
Operating lease liabilities | 234,517 | 231,965 | |||||||||
Other current liabilities | 103,157 | 108,138 | |||||||||
Total current liabilities | 1,880,315 | 1,636,451 | |||||||||
Long-term operating lease liabilities | 1,156,104 | 1,211,693 | |||||||||
Other long-term liabilities | 109,268 | 113,821 | |||||||||
Total liabilities | 3,145,687 | 2,961,965 | |||||||||
Stockholders' equity | |||||||||||
Preferred stock: $0.01 par value; 7,500 shares authorized, none issued | — | — | |||||||||
Common stock: $0.01 par value; 253,125 shares authorized; 64,151 and 66,226 shares issued and outstanding at January 28, 2024 and January 29, 2023, respectively | 642 | 663 | |||||||||
Additional paid-in capital | 588,602 | 573,117 | |||||||||
Retained earnings | 1,555,595 | 1,141,819 | |||||||||
Accumulated other comprehensive loss | (15,552) | (13,809) | |||||||||
Treasury stock, at cost | (1,426) | (739) | |||||||||
Total stockholders' equity | 2,127,861 | 1,701,051 | |||||||||
Total liabilities and stockholders' equity | $ | 5,273,548 | $ | 4,663,016 | |||||||
Retail Store Data (unaudited) | ||||||||||||||||||||||||||
Beginning of quarter | End of quarter | As of | ||||||||||||||||||||||||
October 29, 2023 | Openings | Closings | January 28, 2024 | January 29, 2023 | ||||||||||||||||||||||
Pottery Barn | 191 | 1 | (8) | 184 | 188 | |||||||||||||||||||||
Williams Sonoma | 163 | — | (7) | 156 | 165 | |||||||||||||||||||||
West Elm | 123 | — | (2) | 121 | 122 | |||||||||||||||||||||
Pottery Barn Kids | 46 | — | — | 46 | 46 | |||||||||||||||||||||
Rejuvenation | 10 | 1 | — | 11 | 9 | |||||||||||||||||||||
Total | 533 | 2 | (17) | 518 | 530 | |||||||||||||||||||||
For the Fiscal Year Ended | |||||||||||
(In thousands) | January 28, 2024 | January 29, 2023 | |||||||||
Cash flows from operating activities: | |||||||||||
Net earnings | $ | 949,762 | $ | 1,127,904 | |||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 232,590 | 214,153 | |||||||||
Loss on disposal/impairment of assets | 21,869 | 25,116 | |||||||||
Non-cash lease expense | 255,286 | 231,350 | |||||||||
Deferred income taxes | (29,085) | (23,823) | |||||||||
Stock-based compensation expense | 84,754 | 90,268 | |||||||||
Other | (2,796) | (2,339) | |||||||||
Changes in: | |||||||||||
Accounts receivable | (7,461) | 15,687 | |||||||||
Merchandise inventories | 209,168 | (208,908) | |||||||||
Prepaid expenses and other assets | 1,016 | (11,823) | |||||||||
Accounts payable | 99,043 | (113,521) | |||||||||
Accrued expenses and other liabilities | 4,935 | (61,995) | |||||||||
Gift card and other deferred revenue | 95,005 | 31,839 | |||||||||
Operating lease liabilities | (269,162) | (242,855) | |||||||||
Income taxes payable | 35,349 | (18,231) | |||||||||
Net cash provided by operating activities | 1,680,273 | 1,052,822 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | (188,458) | (354,117) | |||||||||
Other | 201 | 162 | |||||||||
Net cash used in investing activities | (188,257) | (353,955) | |||||||||
Cash flows from financing activities: | |||||||||||
Repurchases of common stock | (313,001) | (880,038) | |||||||||
Payment of dividends | (232,475) | (217,345) | |||||||||
Tax withholdings related to stock-based awards | (52,831) | (81,290) | |||||||||
Net cash used in financing activities | (598,307) | (1,178,673) | |||||||||
Effect of exchange rates on cash and cash equivalents | 954 | (3,188) | |||||||||
Net increase (decrease) in cash and cash equivalents | 894,663 | (482,994) | |||||||||
Cash and cash equivalents at beginning of period | 367,344 | 850,338 | |||||||||
Cash and cash equivalents at end of period | $ | 1,262,007 | $ | 367,344 |
GAAP to Non-GAAP Reconciliation (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
For the Thirteen Weeks Ended | For the Fiscal Year Ended | |||||||||||||||||||||||||||||||||||||||||||
January 28, 2024 | January 29, 2023 | January 28, 2024 | January 29, 2023 | |||||||||||||||||||||||||||||||||||||||||
(In thousands, except per share data) | $ | % of revenues | $ | % of revenues | $ | % of revenues | $ | % of revenues | ||||||||||||||||||||||||||||||||||||
Occupancy costs | $ | 208,020 | 9.1 | % | $ | 203,715 | 8.3 | % | $ | 814,290 | 10.5 | % | $ | 785,425 | 9.1 | % | ||||||||||||||||||||||||||||
Exit Costs1 | — | — | (239) | — | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP occupancy costs | $ | 208,020 | 9.1 | % | $ | 203,715 | 8.3 | % | $ | 814,051 | 10.5 | % | $ | 785,425 | 9.1 | % | ||||||||||||||||||||||||||||
Gross profit | $ | 1,048,615 | 46.0 | % | $ | 1,009,850 | 41.2 | % | $ | 3,303,601 | 42.6 | % | $ | 3,677,733 | 42.4 | % | ||||||||||||||||||||||||||||
Exit Costs1 | — | — | 2,141 | — | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP gross profit | $ | 1,048,615 | 46.0 | % | $ | 1,009,850 | 41.2 | % | $ | 3,305,742 | 42.7 | % | $ | 3,677,733 | 42.4 | % | ||||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 590,524 | 25.9 | % | $ | 540,063 | 22.0 | % | $ | 2,059,408 | 26.6 | % | $ | 2,179,311 | 25.1 | % | ||||||||||||||||||||||||||||
Impairment of Aperture2 | — | (17,687) | — | (17,687) | ||||||||||||||||||||||||||||||||||||||||
Exit Costs1 | — | — | (15,790) | — | ||||||||||||||||||||||||||||||||||||||||
Reduction-in-force Initiatives3 | — | — | (8,316) | — | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP selling, general and administrative expenses | $ | 590,524 | 25.9 | % | $ | 522,376 | 21.3 | % | $ | 2,035,302 | 26.3 | % | $ | 2,161,624 | 24.9 | % | ||||||||||||||||||||||||||||
Operating income | $ | 458,091 | 20.1 | % | $ | 469,787 | 19.2 | % | $ | 1,244,193 | 16.1 | % | $ | 1,498,422 | 17.3 | % | ||||||||||||||||||||||||||||
Impairment of Aperture2 | — | 17,687 | — | 17,687 | ||||||||||||||||||||||||||||||||||||||||
Exit Costs1 | — | — | 17,931 | — | ||||||||||||||||||||||||||||||||||||||||
Reduction-in-force Initiatives3 | — | — | 8,316 | — | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP operating income | $ | 458,091 | 20.1 | % | $ | 487,474 | 19.9 | % | $ | 1,270,440 | 16.4 | % | $ | 1,516,109 | 17.5 | % | ||||||||||||||||||||||||||||
$ | Tax rate | $ | Tax rate | $ | Tax rate | $ | Tax rate | |||||||||||||||||||||||||||||||||||||
Income taxes | $ | 116,799 | 24.8 | % | $ | 116,177 | 24.7 | % | $ | 323,593 | 25.4 | % | $ | 372,778 | 24.8 | % | ||||||||||||||||||||||||||||
Impairment of Aperture2 | — | 2,840 | — | 2,840 | ||||||||||||||||||||||||||||||||||||||||
Exit Costs1 | — | — | 4,690 | — | ||||||||||||||||||||||||||||||||||||||||
Reduction-in-force Initiatives3 | — | — | 2,174 | — | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP income taxes | $ | 116,799 | 24.8 | % | $ | 119,017 | 24.4 | % | $ | 330,457 | 25.4 | % | $ | 375,618 | 24.7 | % | ||||||||||||||||||||||||||||
Diluted EPS | $ | 5.44 | $ | 5.28 | $ | 14.55 | $ | 16.32 | ||||||||||||||||||||||||||||||||||||
Impairment of Aperture2 | — | 0.22 | — | 0.21 | ||||||||||||||||||||||||||||||||||||||||
Exit Costs1 | — | — | 0.20 | — | ||||||||||||||||||||||||||||||||||||||||
Reduction-in-force Initiatives3 | — | — | 0.09 | — | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP diluted EPS4 | $ | 5.44 | $ | 5.50 | $ | 14.85 | $ | 16.54 | ||||||||||||||||||||||||||||||||||||
1 During 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. | ||||||||||||||||||||||||||||||||||||||||||||
2 During Q4 2022, we incurred an impairment charge of approximately $17.7 million, including $9.7 million related to the impairment of software and hardware and $8.0 million related to the impairment of goodwill, associated with Aperture, a division of our Outward, Inc. subsidiary. | ||||||||||||||||||||||||||||||||||||||||||||
3During Q1 2023, we incurred costs related to reduction-in-force initiatives of $8.3 million primarily in our corporate functions. | ||||||||||||||||||||||||||||||||||||||||||||
4Per share amounts may not sum due to rounding to the nearest cent per diluted share. |
For the Fiscal Year Ended | |||||
(In thousands) | January 28, 2024 | ||||
Net earnings | $ | 949,762 | |||
Interest income, net | (29,162) | ||||
Income taxes | 323,593 | ||||
Operating income | 1,244,193 | ||||
Exit Costs 1 | 17,931 | ||||
Reduction-in-force Initiatives 1 | 8,316 | ||||
Operating lease costs | 296,779 | ||||
Adjusted Operating Income | 1,567,219 | ||||
Income tax adjustment 2 | (398,074) | ||||
NOPAT (numerator) | $ | 1,169,145 | |||
1For more information on the nature of these adjustments, see the footnotes to the GAAP to Non-GAAP Reconciliation. | |||||
2Adjustment reflects a hypothetical provision for income taxes on adjusted operating income, using the Company's effective tax rate of 25.4%. |
As of | |||||||||||||||||
(In thousands) | January 28, 2024 | January 29, 2023 | Average | ||||||||||||||
Total assets | $ | 5,273,548 | $ | 4,663,016 | |||||||||||||
Total current liabilities | (1,880,315) | (1,636,451) | |||||||||||||||
Cash in excess of $200 million | (1,062,007) | (167,344) | |||||||||||||||
Invested capital (denominator) | $ | 2,331,226 | $ | 2,859,221 | $ | 2,595,224 | |||||||||||
Return on invested capital | 45.0 | % |
CONTACT: | ||||||||||||||
Jeff Howie | ||||||||||||||
EVP, Chief Financial Officer | ||||||||||||||
(415) 402-4324 |
Cover |
Mar. 13, 2024 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Mar. 13, 2024 |
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 |
Amendment Flag | false |
Entity Central Index Key | 0000719955 |
Entity Emerging Growth Company | false |
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