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WSM · Williams-Sonoma

34 filings

10-K

WSM 10-K Annual Reports

Williams-Sonoma - 34 annual reports

Filing record · 2016–202610-K1110-Q328-K84

2026
Williams-Sonoma Annual Report, Year Ended Feb 1, 2026
Williams-Sonoma, Inc. reported fiscal 2025 (52 weeks ended February 1, 2026) net revenues of $7.81 billion, up $95.3 million, or 1.2%, from $7.71 billion in fiscal 2024, which included a 53rd week. Company comparable brand revenue grew 3.5%, with comp growth of 6.4% in retail and 2.2% in e-commerce. Gross margin declined to 46.2% from 46.5%, and SG&A rose to 28.0% of net revenues from 27.9%. Net earnings were $1.09 billion, and diluted earnings per share were $8.84 versus $8.79 in fiscal 2024, which the company described as record diluted earnings per share. Tariffs flowed through cost of goods sold and reduced merchandise margins by 40 basis points, partly offset by supply chain efficiencies. The company ended the year with $1.0 billion in cash and cash equivalents and no borrowings under its revolving credit facility. Operating cash flow was $1.31 billion, capital expenditures were $259.4 million, and the company returned $1.2 billion to stockholders through repurchases and dividends. In March 2026, the Board authorized a 15% increase in the quarterly dividend, from $0.66 to $0.76 per share. Subsequent to year-end, the U.S. Supreme Court ruled that IEEPA does not authorize tariffs, and the company is assessing the impact and its ability to recover tariffs paid, though refunds remain subject to further litigation. Management's 2026 priorities are accelerating growth, delivering world-class customer service, and driving earnings. The filing cites an uncertain macroeconomic environment, a weak housing market, elevated interest rates, and evolving tariff policy as risks to the outlook.
Mar 26, 2026
2025
Williams-Sonoma Annual Report, Year Ended Feb 2, 2025
Williams-Sonoma, Inc. reported fiscal 2024 (53 weeks ended February 2, 2025) net revenues of $7.71 billion, a decrease of $39.1 million, or 0.5%, from $7.75 billion in fiscal 2023. The company comparable brand revenue declined 1.6%, driven by customer hesitancy toward furniture purchases, partially offset by strength in non-furniture and seasonal assortments. Pottery Barn comparable brand revenue fell 6.2%, while Williams Sonoma grew 2.4%, Pottery Barn Kids and Teen grew 3.0%, and West Elm declined 2.0%. E-commerce accounted for approximately 66% of net revenues, and the e-commerce comparable decline was 2.5% versus a 0.2% increase in retail. Profitability improved meaningfully. Gross margin rose to 46.5% from 42.6%, driven by higher merchandise margins, supply chain efficiencies and a $49.0 million out-of-period freight adjustment. Operating income increased to $1.43 billion from $1.24 billion, and diluted earnings per share rose to $8.79 from $7.28. Operating cash flow was $1.36 billion, and the company ended the year with $1.21 billion in cash and no borrowings under its $500 million revolving credit facility. Shareholder returns totaled $1.1 billion through stock repurchases and dividends, and the Board authorized a 16% increase in the quarterly dividend to $0.66 per share in March 2025. Management's outlook for 2025 emphasizes returning to growth, elevating customer service and driving earnings, while cautioning about the weak housing market, elevated interest rates, inflationary pressure and new tariffs. The filing notes the company was added to the S&P 500 on March 24, 2025.
Mar 27, 2025
2024
Williams-Sonoma Annual Report, Year Ended Jan 28, 2024
Williams-Sonoma, Inc. reported fiscal 2023 (the 52 weeks ended January 28, 2024) with net revenues of $7.75 billion, down $923.8 million, or 10.6%, from $8.67 billion in fiscal 2022. Company comparable brand revenue declined 9.9%, driven by continuing customer hesitancy toward furniture purchases and the company's strategy to reduce promotional activity, partially offset by strength in certain non-furniture categories. Gross margin rose to 42.6% from 42.4%, but operating income fell to $1.24 billion from $1.50 billion, and diluted earnings per share declined to $14.55 from $16.32. Net earnings were $949.8 million versus $1.13 billion in the prior year. The balance sheet and cash flow picture is strong. The company ended the year with $1.26 billion in cash and cash equivalents and no outstanding borrowings under its revolving credit line, and it generated $1.68 billion in net cash from operating activities, up from $1.05 billion. Stockholder returns totaled $545.5 million through stock repurchases and dividends, with $313.0 million spent on buybacks and $236.8 million in dividends declared. Management highlighted three priorities for 2024: returning to growth, elevating customer service and driving earnings. The filing also notes that in March 2024 the Board authorized a new $1.0 billion stock repurchase program and a 26% increase in the quarterly dividend, from $0.90 to $1.13 per share. The filing identifies several risks for investors, including sensitivity to consumer spending on home furnishings, a weak housing market, elevated interest rates, reliance on foreign suppliers (about 81% of merchandise purchases in fiscal 2023, with 25% sourced from China), tariff and trade policy changes, and a possible port strike. Management also flagged elevated inventory shrink and fraud relative to historical levels. Store count declined to 518 from 530, with 13 openings and 25 closings.
Mar 20, 2024
2023
Williams-Sonoma Annual Report, Year Ended Jan 29, 2023
Williams-Sonoma, Inc. is an omni-channel specialty retailer of high-quality products for the home, operating brands including Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, and Mark and Graham. For fiscal 2022 (52 weeks ended January 29, 2023), net revenues increased $428.5 million, or 5.2%, to $8.67 billion, with company comparable brand revenue growth of 6.5%. Pottery Barn was the largest brand at $3.56 billion in net revenues and delivered 14.9% comparable brand revenue growth, while Williams Sonoma declined 1.7% on a comparable basis. Diluted earnings per share rose to $16.32 from $14.75, and net earnings were $1.13 billion versus $1.13 billion in fiscal 2021. Cost of goods sold rose to 57.6% of net revenues from 56.0%, while SG&A fell to 25.1% of net revenues from 26.4%. The company ended the year with $367.3 million in cash and cash equivalents, no outstanding borrowings under its revolving credit line, and operating cash flow of $1.05 billion. It invested $354.1 million in capital expenditures and returned approximately $1.1 billion to shareholders through share repurchases and dividends. Management expects supply chain and macroeconomic challenges, including higher product costs, freight, and distribution center costs, to negatively affect results into fiscal 2023, with gross margin pressures possibly becoming tailwinds in the back half of the year. In March 2023, the Board authorized a new $1 billion stock repurchase program and a 15% increase in the quarterly dividend, from $0.78 to $0.90 per share. The filing highlights risks tied to consumer spending, the weak housing market, inflation, foreign sourcing (approximately 67% of merchandise purchases in fiscal 2022 came from foreign vendors), tariffs, and the e-commerce channel, which represented more than 66% of net revenues and profits in fiscal 2022. The independent auditor, Deloitte & Touche LLP, issued an unqualified opinion, and management concluded internal control over financial reporting was effective as of January 29, 2023.
Mar 24, 2023
2022
Williams-Sonoma Annual Report, Year Ended Jan 30, 2022
Williams-Sonoma, Inc. is an omni-channel specialty retailer of high-quality products for the home, selling through e-commerce websites, direct-mail catalogs and retail stores across brands including Williams Sonoma, Pottery Barn, Pottery Barn Kids and Teen, West Elm, Williams Sonoma Home, Rejuvenation and Mark and Graham. For fiscal 2021 (52 weeks ended January 30, 2022), net revenues increased by $1,462,747,000, or 21.6%, to $8,245,936,000, with comparable brand revenue growth of 22.0% and double-digit comparable brand revenue growth across all brands. Net earnings rose to $1,126,337,000 from $680,714,000, and diluted earnings per share were $14.75 versus $8.61 in fiscal 2020. Gross margin improved, with cost of goods sold falling to 56.0% of net revenues from 61.1%, while selling, general and administrative expenses rose to 26.4% of net revenues from 25.4%, driven by higher advertising spending. The company ended the year with $850,338,000 in cash and cash equivalents, generated operating cash flow of $1,371,147,000, and had no outstanding revolver borrowings. It returned approximately $1,086,972,000 to shareholders through share repurchases and dividends, repurchasing 5,102,624 shares for $899,433,000 during the year. In March 2022, the Board authorized a new $1,500,000,000 repurchase program and a 10% increase in the quarterly dividend, from $0.71 to $0.78 per share. Management identified ongoing global supply chain disruptions, including port congestion and container shortages, as a continuing challenge into fiscal 2022, and planned to invest approximately $350,000,000 in the business, with over 80% prioritized on technology and supply chain initiatives.
Mar 28, 2022
2021
Williams-Sonoma Annual Report, Year Ended Jan 31, 2021
Williams-Sonoma, Inc. reported fiscal 2020 (52 weeks ended January 31, 2021) net revenues of $6.78 billion, up from $5.90 billion in fiscal 2019, an increase of 15.0%. Comparable brand revenue grew 17.0%, with double-digit comparable brand revenue growth across all brands. Growth was driven primarily by e-commerce revenues, which rose approximately 44%, partly offset by lower retail revenues from limited store capacity and reduced store traffic due to COVID-19. The filing states that e-commerce represented more than 70% of net revenues and profits in fiscal 2020. Profitability improved significantly. Gross margin rose to 38.9% from 36.3%, and operating income reached $910.7 million, an operating margin of 13.4% versus 7.9% a year earlier. Net earnings were $680.7 million, and diluted earnings per share were $8.61, compared with $4.49. The filing attributes the gross margin gain mainly to higher merchandise margins from reduced promotional activity and to occupancy leverage. Net cash provided by operating activities was $1.27 billion, compared with $607.3 million in fiscal 2019. The balance sheet strengthened. Cash and cash equivalents were $1.20 billion at year-end, up from $432.2 million, and no amount was outstanding under the revolving line of credit. The filing reports a $300 million term loan, which was repaid in full in February 2021. In March 2021, the Board raised the quarterly dividend to $0.59 from $0.53 and authorized a new $1.0 billion share repurchase program. Store count fell to 581 from 614 as the company closed 43 stores and opened 10, and the filing notes ongoing COVID-19 uncertainty and possible future store impairments.
Mar 30, 2021
2020
Williams-Sonoma Annual Report, Year Ended Feb 2, 2020
Williams-Sonoma, Inc. reported fiscal 2019 (52 weeks ended February 2, 2020) net revenues of $5.90 billion, up 4.0% from $5.67 billion in fiscal 2018, with comparable brand revenue growth of 6.0%. Growth was primarily driven by West Elm and Pottery Barn, partially offset by the loss of the additional week in fiscal 2018. Gross margin declined to 36.3% from 37.0%, mainly due to lower occupancy leverage, higher shipping costs and the incremental impact of China tariffs. Operating income rose to $465.9 million from $436.0 million, operating margin expanded to 7.9% from 7.7%, and diluted earnings per share were $4.49 versus $4.05 in fiscal 2018. Net earnings were $356.1 million. The filing was dated March 27, 2020 and is dominated by the COVID-19 outbreak. On March 17, 2020, the company announced the temporary closure of all U.S. and Canadian retail stores, expected to last until at least April 2, 2020; retail store revenue represents approximately 44% of net revenues. The company stated it anticipates a material impact on its fiscal 2020 earnings, cash flows and liquidity, has delayed issuing fiscal 2020 guidance, and drew down $488 million on its revolver on March 23, 2020, bringing the outstanding balance to $500 million. Management believes it has adequate liquidity for the next 12 months. At year-end the company held $432.2 million in cash, had $300 million outstanding on its term loan maturing January 8, 2021 (which it intends to renew and extend), and had $575.0 million remaining under its stock repurchase program. Operating lease liabilities of $1.32 billion were recorded following the adoption of ASU 2016-02 on February 4, 2019.
Mar 27, 2020
2019
Williams-Sonoma Annual Report, Year Ended Feb 3, 2019
Williams-Sonoma, Inc. reported net revenues of $5.67 billion for fiscal 2018 (53 weeks ended February 3, 2019), up $379,234,000, or 7.2%, from fiscal 2017, with comparable brand revenue growth of 3.7%. E-commerce net revenues rose 10.9% to $3.08 billion, representing 54.3% of net revenues, while retail net revenues grew 3.0% to $2.59 billion. Operating income declined to $435,953,000 from $453,811,000, and operating margin fell to 7.7% from 8.6%, as selling, general and administrative expenses rose to 29.4% of net revenues from 27.9%, driven partly by the reclassification of certain income into net revenues under ASU 2014-09. Diluted earnings per share were $4.05, compared with $3.02 in fiscal 2017, and net earnings were $333,684,000, versus $259,545,000 the prior year, though fiscal 2017 included a provisional Tax Act charge. Capital returns were significant: the company repurchased 5,373,047 shares for $295,304,000 and paid dividends of $140,325,000 in cash during fiscal 2018. In March 2019, the Board authorized an additional $500,000,000 for share repurchases and raised the quarterly dividend from $0.43 to $0.48 per share, an annual rate of $1.92. Cash and cash equivalents were $338,954,000 at year-end, and the company had a $300,000,000 term loan outstanding alongside an undrawn $500,000,000 revolver. Management stated that cash on hand and available credit should provide adequate liquidity over the next 12 months. The company also disclosed that it expects to adopt the new lease accounting standard in fiscal 2019, which it estimates will increase total liabilities by approximately $1.4 billion in lease obligations.
Apr 4, 2019
2018
Williams-Sonoma Annual Report, Year Ended Jan 28, 2018
Williams-Sonoma, Inc. reported fiscal 2017 (52 weeks ended January 28, 2018) net revenues of $5.29 billion, up 4.1% from $5.08 billion in fiscal 2016, with comparable brand revenue growth of 3.2%. E-commerce net revenues rose 5.5% to $2.78 billion, representing 52.5% of net revenues, while retail net revenues rose 2.6% to $2.51 billion. Growth was led by West Elm and Pottery Barn, with particular strength in furniture. Profitability was pressured: gross margin declined to 36.5% from 37.0%, operating income fell to $453.8 million from $472.6 million, and net earnings declined to $259.5 million from $305.4 million. Diluted EPS was $3.02 versus $3.41, including $0.48 of tax expense related to the Tax Cuts and Jobs Act and $0.11 from severance-related charges and the Outward, Inc. acquisition. The effective tax rate rose to 42.6% from 35.3%. The company acquired Outward, Inc., a 3-D imaging and augmented reality platform, on December 1, 2017, for a contractual purchase price of $112 million. Management plans to focus in fiscal 2018 on its four strategic priorities of digital leadership, product innovation, retail transformation and operational excellence, including the early closure of a number of domestic stores. Capital returns remained significant: the company returned $331.2 million to stockholders through repurchases and dividends, and in March 2018 it increased the stock repurchase authorization to $500 million and raised its quarterly dividend 10%, from $0.39 to $0.43 per share. Balance sheet activity included $300 million of term loan borrowings under an amended credit facility with a $500 million unsecured revolver. Cash and cash equivalents rose to $390.1 million from $213.7 million, and long-term debt was $299.4 million at year-end versus none a year earlier. Management stated that cash on hand and available credit facilities should provide adequate liquidity over the next 12 months.
Mar 29, 2018
2017
Williams-Sonoma Annual Report, Year Ended Jan 29, 2017
Williams-Sonoma, Inc. reported net revenues of $5.08 billion for fiscal 2016 (52 weeks ended January 29, 2017), up $107,722,000 or 2.2% from fiscal 2015, with comparable brand revenue growth of 0.7%. E-commerce net revenues rose 4.4% to $2.63 billion and now represent 51.8% of net revenues, while retail net revenues declined 0.1% to $2.45 billion. Gross margin was 37.0% versus 37.1% a year earlier, and operating income fell to $472.6 million from $488.6 million, with operating margin of 9.3% compared with 9.8%. Severance-related reorganization charges of approximately $14.4 million weighed on fiscal 2016 SG&A. Diluted earnings per share rose to $3.41 from $3.37, and net earnings were $305.4 million. Pottery Barn, the largest brand at $2.02 billion in net revenues, saw comparable brand revenues decline 3.5%, while West Elm grew comparable brand revenues 12.8% to $971.6 million in net revenues. The company returned $284.8 million to stockholders through repurchases and dividends, and at year-end held $213.7 million in cash and $410.6 million of remaining repurchase authorization under its $500 million program. In March 2017 the board authorized a dividend increase from $0.37 to $0.39 per quarter. Management plans to drive fiscal 2017 growth through innovation and operational excellence, including digital advertising investment, point-of-sale technology, and optimizing top-performing stores while closing underperforming ones. The filing states that cash on hand and available credit facilities will provide adequate liquidity for the next 12 months, and the company reported 629 stores at year-end.
Mar 30, 2017
2016
Williams-Sonoma Annual Report, Year Ended Jan 31, 2016
Williams-Sonoma, Inc. reported fiscal 2015 (52 weeks ended January 31, 2016) net revenues that increased 5.9% to $4,976,090,000 from $4,698,719,000 in fiscal 2014, with comparable brand revenue growth of 3.7%. E-commerce net revenues rose 6.4% to $2,522,580,000 and retail net revenues rose 5.4% to $2,453,510,000. Net earnings were $310,068,000, and diluted earnings per share increased to $3.37 from $3.24 in fiscal 2014. Gross margin declined to 37.1% from 38.3%, as cost of goods sold rose to 62.9% of net revenues from 61.7%, driven by increased shipping and fulfillment costs and higher lower-margin franchise revenues. Operating income was $488,634,000, or 9.8% of net revenues, versus $502,265,000 a year earlier. The company ended the year with 618 stores and cash and cash equivalents of $193,647,000, with no borrowings outstanding under its $500,000,000 revolving credit facility. Net cash provided by operating activities rose to $544,026,000 from $461,697,000. Stockholders returned $352,631,000 through repurchases and dividends during the year, and in March 2016 the Board authorized a new $500,000,000 repurchase program over three years and a 6% increase in the quarterly dividend to $0.37 per share. Management cited four strategies for fiscal 2016: re-asserting product leadership, revolutionizing inventory management, transforming marketing, and changing its approach to real estate and the retail experience. The company also noted it is growing its international franchise operations, with international revenues up 26.8% in fiscal 2015, and that West Elm, with comparable brand revenue growth of 14.8%, was a key growth driver, while PBteen comparable brand revenue declined 2.7%.
Mar 31, 2016
2015
Williams-Sonoma Annual Report, Year Ended Feb 1, 2015
Williams-Sonoma, Inc. reported fiscal 2014 (52 weeks ended February 1, 2015) net revenues of $4,698,719 thousand, up 7.1% from $4,387,889 thousand in fiscal 2013, with comparable brand revenue growth of 7.1%. Diluted earnings per share rose to $3.24 from $2.82, and net earnings were $308,854 thousand. E-commerce net revenues grew 12.1% to $2,370,694 thousand and now exceed half of total net revenues (50.5%), while retail net revenues grew 2.4% to $2,328,025 thousand. Gross margin declined to 38.3% from 38.8%, mainly from lower selling margins, while selling, general and administrative expenses fell to 27.6% of net revenues from 28.5%. The company operated 601 stores at year-end, up from 585, with 35 openings and 19 closings during the year. Growth was led by West Elm, with comparable brand revenues up 18.2%, and Pottery Barn, the largest brand, with comparable brand revenues up 5.8%. Management plans to invest in its e-commerce platform, supply chain, new stores (particularly West Elm), and longer-term growth initiatives including global expansion and newer businesses. Capital returns remained significant: the company returned $350,135 thousand to stockholders through repurchases and dividends during fiscal 2014. As of February 1, 2015, $287,000 thousand remained under a $750,000 thousand repurchase program, and the Board authorized a quarterly dividend increase from $0.33 to $0.35 per share in March 2015. Cash and cash equivalents were $222,927 thousand, and the company stated that its cash and available credit facilities would provide adequate liquidity for the next 12 months.
Apr 2, 2015
2014
Williams-Sonoma Annual Report, Year Ended Feb 2, 2014
Williams-Sonoma, Inc. reported fiscal 2013 (52 weeks ended February 2, 2014) net revenues of $4,387,889,000, up 8.5% from $4,042,870,000 in fiscal 2012, with comparable brand revenue growth of 8.8%. Diluted earnings per share rose to $2.82 from $2.54, and net earnings were $278,902,000. Gross margin was 38.8% of net revenues, versus 39.4% in fiscal 2012, as cost of goods sold rose to 61.2% of net revenues from 60.6%, which the company attributed primarily to lower selling margins. Selling, general and administrative expenses were 28.5% of net revenues, down from 29.3%, driven by greater advertising efficiency. Operating income was $452,098,000, an operating margin of 10.3%. The direct-to-customer segment grew to $2,115,022,000 in net revenues (up 13.1%), with Pottery Barn, West Elm, Pottery Barn Kids and PBteen leading growth. Retail net revenues increased 4.6% to $2,272,867,000, and the company operated 585 stores at year-end. Pottery Barn comparable brand revenues rose 10.4%, while West Elm grew 17.4% and PBteen 14.1%; Williams-Sonoma brand comparable revenues rose 1.5%. Management outlined four long-term strategies for fiscal 2014: strengthening brands, global expansion, supply chain investment and e-commerce investment. Capital returns were significant: the company returned $350,855,000 to stockholders through repurchases ($239,274,000) and dividends ($111,581,000 paid). A $750,000,000 repurchase program was authorized in 2013 to be executed over three years, with $511,222,000 remaining at year-end. In March 2014 the quarterly dividend was raised 6%, from $0.31 to $0.33 per share. Cash and cash equivalents were $330,121,000, and the company had no borrowings under its $300,000,000 unsecured revolving credit facility.
Apr 3, 2014
2013
Williams-Sonoma Annual Report, Year Ended Feb 3, 2013
Williams-Sonoma, Inc. reported fiscal 2012, a 53-week year ended February 3, 2013, with net revenues exceeding four billion dollars for the first time in its history, rising 8.7% to $4,042,870,000 from $3,720,895,000 in fiscal 2011. Comparable brand revenues increased 6.1%, and diluted earnings per share rose to $2.54 from $2.22. Net earnings were $256,730,000. Direct-to-customer net revenues grew 14.5% to $1,869,386,000, with e-commerce net revenues up 17.4% to $1,656,197,000, while retail net revenues rose 4.1% to $2,173,484,000 and comparable store sales increased 2.3%. The filing notes that the additional week contributed approximately $70 million of net revenues and $0.07 of diluted earnings per share. The company ended the year with $424,555,000 in cash and no borrowings under its $300,000,000 unsecured revolving credit facility. Operating cash flow was $364,127,000, capital expenditures were $205,404,000, and the company returned $242,927,000 to stockholders through share repurchases and dividends. Stockholders' equity was $1,309,138,000, or $13.39 per share. Management states that cash on hand and available credit will provide adequate liquidity over the next 12 months. Looking ahead, in March 2013 the Board authorized a new $750,000,000 stock repurchase program to be executed over three years and a 41% increase in the quarterly dividend, from $0.22 to $0.31 per share. The company also plans to enter Australia in fiscal 2013 with four company-owned stores and an e-commerce site, and the filing lists 23 franchised stores in the Middle East. Key risks cited include consumer spending sensitivity, dependence on foreign vendors (about 61% of merchandise purchases were foreign-sourced), and the execution of new brands and global expansion.
Apr 4, 2013
2012
Williams-Sonoma Annual Report, Year Ended Jan 29, 2012
Williams-Sonoma, Inc. reported record fiscal 2011 results for the 52 weeks ended January 29, 2012. Net revenues rose 6.2% to $3,720,895 thousand from $3,504,158 thousand, and diluted earnings per share increased to $2.22 from $1.83. Net earnings were $236,931 thousand, up from $200,227 thousand. Gross margin held at 39.2% of net revenues, while operating income rose to $381,732 thousand, or 10.3% of net revenues, from 9.2% a year earlier. Comparable brand revenue grew 7.3%, led by West Elm (up 30.3%) and Pottery Barn (up 7.6%), while Williams-Sonoma brand comparable brand revenue declined 0.3%. The direct-to-customer segment grew to 43.9% of net revenues, with e-commerce net revenues up 17.9% to $1,410,236 thousand. Management expects direct-to-customer to exceed 50% of revenues over the next three years. For fiscal 2012, a 53-week year, management guided to net revenue growth of 6% to 8%, diluted EPS of $2.37 to $2.47, capital investment of $200 million to $220 million, and more than $240 million returned to stockholders through repurchases and dividends. The company ended the year with $502,757 thousand in cash, no borrowings under its $300 million credit facility, and total stockholders' equity of $1,255,262 thousand. Capital returns were significant during the year. The company repurchased 5,384,036 shares for approximately $194,429 thousand and paid $68,877 thousand in dividends. In January 2012 the Board raised the quarterly dividend from $0.17 to $0.22 per share and authorized a new $225 million repurchase program, of which $155,571 thousand remained at year-end. The company also acquired Rejuvenation Inc. on November 1, 2011, for approximately $25,657 thousand.
Mar 29, 2012
2011
Williams-Sonoma Annual Report, Year Ended Jan 30, 2011
Williams-Sonoma, Inc. reported record fiscal 2010 results for the 52 weeks ended January 30, 2011. Net revenues rose 12.9% to $3,504,158 thousand from $3,102,704 thousand, and diluted earnings per share increased to $1.83 from $0.72. Gross margin was 39.2% of net revenues versus 35.6% a year earlier, and earnings before income taxes reached $323,060 thousand, compared with $120,289 thousand. Net earnings were $200,227 thousand. Growth was led by the Internet channel, where revenues grew 26.9%, and by comparable store sales, which rose 9.8%. Direct-to-customer revenues were 41.5% of net revenues and retail revenues were 58.5%. The company closed all stand-alone Williams-Sonoma Home retail stores and is shifting that merchandise into the Williams-Sonoma kitchen brand. It operated 592 stores at year-end, down from 610, and it opened its first franchised stores in the Middle East through M.H. Alshaya. Management guided to fiscal 2011 net revenue growth of 4% to 6%, diluted EPS growth of 15% to 19%, capital spending of $135,000 thousand to $150,000 thousand, and roughly $200,000 thousand returned to shareholders through dividends and buybacks. The company also raised its quarterly dividend from $0.15 to $0.17 per share in March 2011. Cash and cash equivalents ended the year at $628,403 thousand, and the company had no borrowings under its $300,000 thousand revolving credit facility. Operating cash flow was $355,989 thousand. During fiscal 2010 the company repurchased $125,000 thousand of stock, and it authorized a new $125,000 thousand repurchase program in January 2011. Deloitte & Touche LLP audited the financial statements, and management concluded internal control over financial reporting was effective.
Mar 31, 2011
2010
Williams-Sonoma Annual Report, Year Ended Jan 31, 2010
Williams-Sonoma, Inc. reported fiscal 2009 (52 weeks ended January 31, 2010) net revenues of $3,102,704,000, down 7.7% from $3,361,472,000 in fiscal 2008, as the economic downturn drove a comparable store sales decrease of 5.1%. Diluted earnings per share rose to $0.72 from $0.28, and earnings before income taxes were $120,289,000 versus $41,953,000. Management cited reduced inventories to their lowest level in five years ($466,124,000) and year-end cash of $513,943,000, the highest in the company's history, with net cash provided by operating activities of $490,718,000. The company decided that the future potential of Williams-Sonoma Home is limited and is planning to restructure its unprofitable segments, including the operations of its 11 retail stores, with certain merchandise categories to be moved into the Williams-Sonoma kitchen brand. For fiscal 2010, management guided to a total company net revenue increase of 3% to 6% and diluted earnings per share in the range of $1.12 to $1.22, and it expects a 37% to 40% effective tax rate. The quarterly dividend was raised from $0.12 to $0.13 per share in March 2010. The company operated 610 stores at year-end and entered a franchise agreement with the M.H. Alshaya Company to expand into the Middle East. The filing also notes a $300,000,000 unsecured revolving credit facility with no amounts outstanding at January 31, 2010, and a new 1,351,000 square foot South Brunswick, New Jersey distribution center to be occupied in phases beginning in June 2010.
Apr 1, 2010
2009
Williams-Sonoma Annual Report, Year Ended Feb 1, 2009
Williams-Sonoma, Inc. reported a difficult fiscal 2008 (52 weeks ended February 1, 2009). Net revenues declined 14.8% to $3,361,472,000 from $3,944,934,000, and diluted earnings per share fell to $0.28 from $1.76. Gross margin as a percent of net revenues dropped to 33.8% from 38.9%, reflecting deleverage of fixed occupancy costs, greater markdowns, and higher inventory reserves. Comparable store sales decreased 17.2%, and the company recorded $33,995,000 of impairment charges on underperforming retail stores. Net earnings were $30,024,000, down from $195,757,000 in fiscal 2007. The balance sheet and cash flow showed some resilience. Cash and cash equivalents rose to $148,822,000, and operating cash flow was $230,163,000. Merchandise inventories fell $120,762,000, or 17.4%, to $572,899,000 net, and capital spending was reduced to $191,789,000. The company had no borrowings under its $300,000,000 credit facility at year-end, and shareholders' equity was $1,147,984,000. Management said it expects a net revenue decline of 12% to 17% in fiscal 2009. To respond, management launched a $75,000,000 infrastructure cost reduction program that included an approximate 18% cut in full-time headcount, and it terminated the $150,000,000 share repurchase program in December 2008. The quarterly dividend was maintained at $0.12 per share, with a new $0.12 dividend declared in March 2009, though the filing notes that the dividend may be limited or terminated at any time.
Apr 2, 2009
2008
Williams-Sonoma Annual Report, Year Ended Feb 3, 2008
Williams-Sonoma, Inc. reported fiscal 2007, a 53-week year ended February 3, 2008, with net revenues up 5.8% to $3,944,934,000 from $3,727,513,000, driven by growth in all brands. Diluted earnings per share declined 1.7% to $1.76 from $1.79, including a net $0.013 per diluted share negative impact from FIN 48 partially offset by an estimated $0.05 benefit from the extra week. Net earnings were $195,757,000 versus $208,868,000 in fiscal 2006. Retail revenues rose 5.9% to $2,281,218,000 while direct-to-customer revenues rose 5.7% to $1,663,716,000, with Internet revenues up 19.0% to $1,103,750,000. Comparable store sales grew only 0.3%, and Pottery Barn Kids comparable store sales declined 1.5%. Management stated that fiscal 2008 faces one of the most challenging macroeconomic environments in many years, and that revenue growth could be in the negative low-single digits. The company plans to reduce inventory levels and costs, open 31 new stores and remodel or expand 20 others, and capital expenditures are projected at $215,000,000 to $235,000,000. Gross margin fell to 38.9% of net revenues from 39.9%, and cost of goods sold rose to 61.1% of net revenues, driven by increased markdowns and raw material costs. Capital returns remained significant: the company repurchased 6,195,500 shares for about $190,378,000 in fiscal 2007, and the Board authorized an additional $150,000,000 repurchase program in January 2008. The quarterly dividend was raised from $0.115 to $0.12 per share in March 2008. Cash and cash equivalents ended the year at $118,950,000, down from $275,429,000, and the company had no borrowings outstanding under its $300,000,000 credit facility at year-end.
Apr 3, 2008
2007
Williams-Sonoma Annual Report, Year Ended Jan 28, 2007
Williams-Sonoma, Inc. reported net revenues of $3.73 billion for fiscal 2006 (52 weeks ended January 28, 2007), up 5.3% from $3.54 billion in fiscal 2005, with growth in all brands. Net earnings were $208.9 million, or $1.79 per diluted share, down from $1.81 in fiscal 2005. Management said the home-centered macroeconomic environment softened in the back half of the year, leading to lower direct-to-customer response rates, weaker retail traffic and high competitive markdown pressure, particularly at Pottery Barn, the company's largest brand, where revenues fell substantially short of expectations. Comparable store sales grew only 0.3%, and gross margin as a percent of net revenues declined to 39.9% from 40.6%. Management has a comprehensive recovery plan underway and expects improvement throughout 2007 and 2008. Cash generation remained solid, with net cash from operating activities of $309.1 million and capital expenditures of $191.0 million. The company returned about $219.9 million to shareholders through share repurchases ($185.5 million) and dividends ($34.4 million paid). Cash and equivalents ended the year at $275.4 million, and the company has a $300 million unsecured credit facility with no amounts borrowed. In March 2007 the board raised the quarterly dividend from $0.10 to $0.115 per share and authorized repurchase of an additional 5,000,000 shares. For fiscal 2007 management plans to focus on revitalizing Pottery Barn, growing the emerging brands (West Elm, PBteen and Williams-Sonoma Home), and increasing pre-tax operating margin through cost containment. Management expects further short-term compression in operating margin in fiscal 2007 due to soft home-furnishings demand, Pottery Barn recovery costs and higher incentive compensation. Retail leased square footage is expected to rise 5% to 6%, with 21 new stores planned.
Mar 29, 2007
2006
Williams-Sonoma Annual Report, Year Ended Jan 29, 2006
Williams-Sonoma, Inc. reported net revenues of $3.54 billion for the fiscal year ended January 29, 2006, up 12.8% from $3.14 billion in fiscal 2004. Net earnings rose to $214.9 million, or $1.81 per diluted share, compared with $191.2 million, or $1.60 per diluted share, the prior year. Retail revenues were $2.03 billion (57.4% of net revenues) and direct-to-customer revenues were $1.51 billion (42.6%). Comparable store sales grew 4.9%, and gross margin was 40.6% of net revenues, compared with 40.5% the prior year. The company's results include a pre-tax charge of approximately $13.5 million ($0.07 per diluted share) from its decision in January 2006 to transition the Hold Everything brand into its other existing brands by the end of fiscal 2006, with an additional after-tax charge of $0.03 per diluted share expected in the first half of fiscal 2006. Operating cash flow was $348.4 million, and capital expenditures were $151.8 million. Cash and cash equivalents stood at $361.0 million at year-end, with no borrowings under a $300 million credit facility. Looking ahead, the company declared its first-ever quarterly cash dividend of $0.10 per share, payable May 24, 2006, and authorized a new repurchase program of up to 2,000,000 shares. The filing also flags an expected negative impact of about 10% on fiscal 2006 diluted earnings per share from adopting SFAS No. 123R, and it plans to open 28 new stores in fiscal 2006 while implementing a new retail inventory management system.
Apr 7, 2006
2005
Williams-Sonoma Annual Report, Year Ended Jan 30, 2005
Williams-Sonoma, Inc. reported fiscal 2004 (52 weeks ended January 30, 2005) net revenues of $3.14 billion, up 13.9% from $2.75 billion in fiscal 2003, with diluted earnings per share rising 21.2% to $1.60 and net earnings of $191.2 million. Retail net revenues grew 11.6% and direct-to-customer net revenues grew 17.1%, with the emerging brands PBteen, West Elm, Hold Everything and Williams-Sonoma Home contributing. Pre-tax operating margin improved to 9.9% from 9.3%, driven by lower shipping costs as a percentage of revenues, reduced telecommunication expenses, and lower corporate overhead. Comparable store sales rose 3.5%, and the company ended the year with 552 stores. Management highlighted that Pottery Barn sales were weaker than expected in the fourth-quarter holiday season, and that Williams-Sonoma Home sales came in at the low end of expectations. Management set three long-term milestones: surpassing $3.5 billion in revenues, achieving a 10.0% pre-tax operating margin, and delivering the highest diluted EPS in company history. The company plans 28 new stores and 10 remodels in fiscal 2005, with capital expenditures of $160 million to $180 million. Cash rose to $239.2 million, and the company has never declared or paid a cash dividend. Shares repurchased in fiscal 2004 totaled $79.3 million. The filing also discloses a purported class action (Alvarez) alleging misclassification of California store managers, whose financial impact cannot yet be predicted. In addition, the company replaced its $200 million credit facility with a $300 million unsecured revolving line on February 22, 2005, and it restated its lease accounting for rent holidays, increasing property and equipment and deferred rent by approximately $17.4 million each, with no impact on earnings.
Apr 15, 2005
2004
Williams-Sonoma Annual Report, Year Ended Feb 1, 2004
Williams-Sonoma, Inc. reported fiscal 2003 (52 weeks ended February 1, 2004) as a record year for pre-tax operating margin and diluted earnings per share, per the filing's overview. Net revenues rose 16.7% to $2.75 billion, and diluted earnings per share increased 26.9% to $1.32. Net earnings were $157.2 million, up from $124.4 million, and gross margin held at 40.3% of net revenues. Retail revenues were $1.62 billion and direct-to-customer revenues were $1.13 billion, with Internet sales up 66.1% to $332.9 million. Comparable store sales grew 4.0%, and the company ended the year with 512 stores. The company's balance sheet and cash position are solid. Cash and cash equivalents were $163.9 million, shareholders' equity was $804.6 million, and total assets were $1.47 billion. Operating cash flow fell to $209.4 million from $310.2 million, mainly because of higher merchandise inventories. Capital expenditures were $212.0 million, including a $37.0 million corporate aircraft. The company repurchased about 1.8 million shares in fiscal 2003 for $59.7 million, and it has a $200 million unsecured credit facility that was undrawn. Management expects fiscal 2004 capital spending of $180 million to $190 million and plans to add 36 new stores and remodel 19. The filing lists risks that investors should weigh, including consumer spending sensitivity, reliance on foreign vendors (about 61% of purchases were foreign sourced from 41 countries), dependence on new store openings, catalog and paper cost pressures, and the complexity of a multi-channel business. The company has never paid a cash dividend and does not intend to pay one.
Apr 15, 2004
2003-A
Williams-Sonoma Annual Report (Amendment), Year Ended Feb 2, 2003
This Form 10-K/A, Amendment No. 1, is filed by Williams-Sonoma, Inc. for the fiscal year ended February 2, 2003. Its stated purpose is solely to add Exhibit 21 (Subsidiaries) and Exhibit 23.1 (Independent Auditors' Consent) to the Original Form 10-K, which was filed on April 15, 2003. The filing states that these exhibits were inadvertently omitted by the filing agent during the edgarization process. The document is dated April 16, 2003 and is signed by Chief Executive Officer Edward A. Mueller. The cover page reports an aggregate market value of voting stock held by non-affiliates of $1,892,878,584, based on a closing price of $20.45 on August 4, 2002. As of March 31, 2003, 115,116,133 shares of Common Stock were outstanding, listed on the New York Stock Exchange. The company is identified as an accelerated filer. The exhibit index points to the company's principal financing and governance arrangements, including the Second Amended and Restated Credit Agreement dated October 22, 2002 with Bank of America, N.A. as administrative agent, and several equity compensation and employment-related plans and agreements. Financial results and operating detail are contained in the Original Form 10-K rather than in this amendment.
Apr 16, 2003
2003
Williams-Sonoma Annual Report, Year Ended Feb 2, 2003
Williams-Sonoma, Inc. reported net revenues of $2.36 billion for fiscal 2002 (52 weeks ended February 2, 2003), up 13.1% from $2.09 billion in fiscal 2001. Net earnings rose to $124.4 million, or $1.04 per diluted share, from $75.1 million, or $0.65 per diluted share, a year earlier. Gross margin improved to 40.3% of net revenues from 38.1%, and operating margin to 8.6% from 6.1%. Retail accounted for 60.3% of net revenues and direct-to-customer for 39.7%, with comparable store sales up 2.7%. The company ended the year with 478 retail stores, up from 415, and plans to increase retail leased square footage by approximately 9% to 11% in fiscal 2003, a net increase of about 34 stores. Cash and cash equivalents rose to $193.5 million, cash from operations was $310.2 million, and the company had no borrowings under its $200 million line of credit. Total debt was $25.5 million, and shareholders' equity reached $644.0 million. The company repurchased 2 million shares for about $48.4 million in the fourth quarter and authorized a program for up to 4 million shares. It has never paid a cash dividend and does not intend to do so. The filing flags risks including consumer spending sensitivity, the ability to open new stores profitably, reliance on foreign vendors (about 58% of merchandise purchases were foreign sourced), and a planned consolidation of two related-party Memphis distribution partnerships under FIN No. 46 beginning August 4, 2003, expected to add about $16 million in assets and $18 million in liabilities.
Apr 15, 2003
2002
Williams-Sonoma Annual Report, Year Ended Feb 3, 2002
Williams-Sonoma, Inc. reported fiscal 2001 (53 weeks ended February 3, 2002) net revenues of $2.09 billion, up from $1.83 billion in fiscal 2000, with net earnings of $75.1 million, or $1.30 per diluted share, compared with $56.8 million, or $.99 per diluted share, the prior year. Retail sales were $1.23 billion and direct-to-customer sales were $735.8 million. The company operated 415 stores at year-end, up from 382, and planned a net increase of about 56 stores in fiscal 2002, along with a test of a new West Elm catalog and capital expenditures projected at $150 million to $160 million. Balance sheet strength improved over the year. Cash and cash equivalents rose to $75.4 million from $19.7 million, merchandise inventories fell to $249.2 million from $283.1 million, and shareholders' equity grew to $532.5 million from $427.5 million. Operating cash flow was $205.0 million. The company had no borrowings outstanding under its $200 million line of credit. Comparable store sales grew 1.7%, slowing from 5.5% in fiscal 2000, and the company has never paid a cash dividend. On April 15, 2002, the Board declared a two-for-one stock split, to be distributed May 9, 2002 to shareholders of record on April 29, 2002. Management also expects the Canadian store expansion and planned system replacements over several years to carry execution risks, and the filing notes that the company is pursuing potential acquisition of two Memphis distribution facilities leased from related partnerships.
Apr 29, 2002
2001
Williams-Sonoma Annual Report, Year Ended Jan 28, 2001
Williams-Sonoma, Inc. and its subsidiaries are specialty retailers of home products, operating through a retail segment (382 stores in 39 states and Washington DC as of January 28, 2001) and a direct-to-customer segment (six catalogs and three e-commerce websites). Retail accounted for 57.2% of fiscal 2000 net revenues and direct-to-customer for 42.8%. Fiscal 2000 net revenues were $1.83 billion, up $369,483,000 (25.3%) from fiscal 1999, driven by new stores and growth of the Pottery Barn brand. Net earnings fell to $56.8 million from $68.1 million, and diluted earnings per share declined to $.99 from $1.16. Gross margin as a percent of net revenues decreased to 37.9% from 38.8%, and operating margin fell to 5.4% from 7.5%, reflecting promotional activity, higher inventory shrinkage, and increased catalog costs as a percent of revenue after lower-than-anticipated direct-to-customer demand in the second half of the year. The balance sheet strengthened over the year: shareholders' equity rose to $427.5 million, cash fell to $19.7 million after a $73.3 million purchase of a San Francisco corporate facility, and operating cash flow increased to $181.3 million. The company had no borrowings outstanding under its new $200 million unsecured revolving credit facility at year-end. Management expects fiscal 2001 gross capital expenditures of $135 million to $150 million and plans three new direct-to-customer growth initiatives, five Toronto stores, and about 16 new Pottery Barn Kids stores. The company has never paid a cash dividend, and its credit covenants prohibit one. Dale W. Hilpert became Chief Executive Officer on April 2, 2001, succeeding W. Howard Lester, who remains Chairman.
Apr 26, 2001
2000
Williams-Sonoma Annual Report, Year Ended Jan 30, 2000
Williams-Sonoma, Inc. reported net sales of $1,383,993 thousand (about $1.38 billion) for the fiscal year ended January 30, 2000 (fiscal 1999), an increase of $280,039,000 (25.4%) over fiscal 1998. Net earnings were $68,100 thousand ($1.16 diluted earnings per share), compared with $54,897 thousand ($0.96 diluted) in the prior year. Retail sales rose 20.7% to $869,078 thousand, and direct-to-customer sales rose 34.2% to $514,915 thousand, with Pottery Barn and Pottery Barn Kids cited as the main drivers. Comparable store sales grew 6.4%, and the company ended the year with 344 stores. The company's balance sheet expanded substantially. Total assets rose to $738,942 thousand from $576,245 thousand, and merchandise inventories increased to $257,342 thousand from $173,160 thousand. Management stated that year-end inventory levels were above its expectations and anticipated they would be back in line with forecasted sales in the second half of fiscal 2000. Shareholders' equity increased to $383,309 thousand, and the company has never paid a cash dividend. Long-term debt was $40,453 thousand, and there were no borrowings outstanding under the line of credit at year end. Looking ahead, the company planned gross capital expenditures of approximately $230,000,000 for fiscal 2000, including about $75,000,000 for a new corporate headquarters building (purchased in February 2000 for $80,000,000). It also entered into a lease for a second 1,100,000 square-foot distribution facility in Olive Branch, Mississippi, and expects to replace its line of credit arrangements with a long-term agreement by the end of the third quarter of fiscal 2000. In March 2000, the company repurchased 825,000 shares for approximately $18,500,000.
May 1, 2000
1999-A
Williams-Sonoma Annual Report (Amendment), Year Ended Jan 31, 1999
This Item 14 section of Williams-Sonoma, Inc.'s annual report on Form 10-K covers exhibits, financial statement schedules, and Form 8-K reporting for the fiscal year ended January 31, 1999. It states that the financial statements are incorporated by reference from Item 8, and that Schedule II (Valuation and Qualifying Accounts) is included with the Independent Auditors' Report on Financial Statement Schedule. It also states that no Form 8-K reports were filed during the last quarter of the fiscal year. The exhibit index shows the company's governing documents, employee benefit and stock option plans, real estate leases, and financing arrangements. The financing arrangements include a $40,000,000 7.2% Senior Notes note agreement dated August 1, 1995, an Amended and Restated Standing Loan Agreement and Credit Agreement with Bank of America, NT & SA dated June 1, 1997, and a Letter of Credit Agreement. Subsidiary guarantees and a 1998 amendment to the syndicated credit agreement are also listed. Several new 1998 agreements tied to a distribution facility in Olive Branch, Mississippi are listed, including a Memorandum of Understanding dated August 24, 1998, reimbursement agreements with Hewson Properties, and an Olive Branch distribution facility lease dated December 1, 1998. The index states that the annual report to security holders (Exhibit 13), the financial data schedule (Exhibit 27), the subsidiaries list (Exhibit 21), and the earnings per share computation (Exhibit 11) were filed previously, with the Annual Report on Form 10-K for the fiscal year ended January 31, 1999, filed April 30, 1999. The only exhibit filed with this report is the Independent Auditors' Consent (Exhibit 23.1).
May 6, 1999
1999
Williams-Sonoma Annual Report, Year Ended Jan 31, 1999
Williams-Sonoma, Inc. reported fiscal 1998 (the 52 weeks ended January 31, 1999) as a record year of growth in its filing. Net sales rose to $1,103,954,000, an increase of $170,697,000 (18.3%) over fiscal 1997. Retail sales grew 19.7% to $720,320,000, driven mainly by new store openings: the Company opened 57 stores and closed 35, ending the year with 298 stores. Catalog sales increased 15.7% to $383,634,000. Comparable store sales grew 5.0%. Net earnings were $54,897,000, or $.96 per diluted share, up from $41,347,000 or $.75 per diluted share in fiscal 1997. Cost of goods sold and occupancy fell to 59.0% of net sales from 59.7%, while selling, general and administrative expense rose slightly to 32.7% of net sales from 32.4%. The balance sheet strengthened during the year. Shareholders' equity increased to $302,030,000 from $193,198,000, largely due to the conversion of $40,000,000 of 5 1/4% Convertible Notes into about 3,064,000 common shares and to stock option exercises. Cash and cash equivalents were $107,308,000 at year-end, and the Company had no borrowings outstanding under its line of credit. Long-term debt and other liabilities fell to $44,649,000 from $89,789,000. Merchandise inventories rose to $173,160,000, and the Company stated this is in line with expected first-quarter 1999 sales. Planned fiscal 1999 gross capital expenditures are approximately $116,000,000, including about $57,000,000 for new stores and $22,000,000 for information systems. The Company has never paid a cash dividend, and its bank credit agreement and Senior Note covenants restrict dividend payments. Management reports that the Company's business is highly seasonal, with a significant portion of sales and net income realized from October through December. The Company also reported Year 2000 remediation work, with testing expected to be completed by mid-1999 and an estimated maximum fiscal 1999 cost of $0.5 million. The Company reported no material pending legal proceedings.
Apr 30, 1999
1998
Williams-Sonoma Annual Report, Year Ended Feb 1, 1998
Williams-Sonoma, Inc. reported net sales of $933.3 million for the 52 weeks ended February 1, 1998 (fiscal 1997), an increase of $121.5 million, or 15%, over fiscal 1996's 53-week period. Retail sales were $601.7 million (64.5% of net sales), up 17.2%, driven mainly by new store openings. The company ended the year with 276 retail stores across 37 states and the District of Columbia, and catalog sales were $331.5 million (35.5% of net sales), up 11.2%. Comparable store sales grew 2.8%. Net earnings rose to $41.3 million, or $1.50 diluted earnings per share, from $22.7 million, or $0.86, in fiscal 1996, with the gross margin improvement (cost of goods sold and occupancy fell to 59.7% of net sales from 60.8%) a key driver. The balance sheet strengthened over the year: total assets rose to $477.2 million from $404.4 million, shareholders' equity increased to $193.2 million, and cash and cash equivalents reached $97.2 million. Operating cash flow was $75.9 million, down from $110.7 million, mainly due to higher inventory levels. Capital spending was $59.3 million in fiscal 1997, and the company plans gross capital expenditures of $70 million to $75 million in fiscal 1998. The company intends to redeem its $40 million 5.25% Convertible Notes in April 1998, and it expects substantially all of them to convert into common stock. The company has never paid a cash dividend and is restricted from doing so under its bank credit agreement and Senior Note covenants. On March 11, 1998, the board declared a two-for-one stock split, to be distributed May 15, 1998. The company's stock traded on the NASDAQ National Market System at $59.75 on March 27, 1998. The filing also disclosed a $2.3 million pre-tax charge for closing the San Francisco call center, with a new call center scheduled to open in Oklahoma City in the third quarter of fiscal 1998. The company reported no material pending legal proceedings and estimated Year 2000 remediation costs of up to $4.5 million over 1998 and 1999.
Apr 22, 1998
1997
Williams-Sonoma Annual Report, Year Ended Feb 2, 1997
Williams-Sonoma, Inc. reported fiscal 1996 (the 53 weeks ended February 2, 1997) with net sales of $811.8 million, up $167,105,000 (26%) from $644.7 million, and net earnings of $22.7 million, or $.86 fully diluted per share, compared with $2.5 million in fiscal 1995. Retail sales were $513.6 million (63.3% of net sales) and catalog sales were $298.2 million (36.7%). The company operated 256 stores in 36 states and the District of Columbia at year-end, opened 30 and closed 14 stores during the year, and reported comparable store sales growth of 4.6%. Gross margin improved as cost of goods sold and occupancy fell to 60.8% of net sales from 63.7%, and SG&A fell to 33.8% from 35.0%. Balance sheet and liquidity strengthened over the year. Cash and cash equivalents rose to $78.8 million from $4.2 million, and net cash provided by operating activities was $112.2 million, versus $2.4 million in fiscal 1995. Total assets grew to $404.4 million and shareholders' equity to $146.0 million. During the year the company issued $40 million of 5.25% convertible subordinated notes due 2003, convertible at $26.10 per share, and used the proceeds mainly to reduce bank borrowings. The company plans approximately $64.5 million of gross capital expenditures in fiscal 1997, including about $10 million for information systems, and expects to open 39 new large-format stores while closing 14 smaller ones. The company has never paid a cash dividend, and its bank credit agreement, which expires May 1, 1997, is being replaced by a signed commitment for a 360-day facility. The filing states there are no material pending legal proceedings. Stock traded on the NASDAQ National Market System, with a closing price of $30.75 on March 27, 1997, and approximately 537 shareholders of record. Approximately 38% of merchandise is foreign-sourced, and no single supplier accounted for more than 4% of purchases.
May 1, 1997
1996
Williams-Sonoma Annual Report, Year Ended Jan 28, 1996
Williams-Sonoma, Inc. reported fiscal 1995 (ended January 28, 1996) net sales of $644.7 million, up $116.1 million (22%) from $528.5 million, but net earnings fell sharply to $2.5 million, or $.10 per share, from $19.6 million, or $.75 per share, in fiscal 1994. Gross margin pressure was significant: cost of goods sold and occupancy rose to 63.7% of net sales from 59.9%, reflecting higher occupancy costs, a fourth-quarter promotional program to clear excess inventory, a year-end inventory reserve, and higher-than-planned shortage results. Selling, general and administrative expense rose to 35.0% of net sales from 33.5%, partly due to distribution and telemarketing problems during the holiday peak season. The company operated 240 retail stores at year-end, up from 214, and mailed 131.8 million catalogs. Retail sales were $394.3 million (61% of net sales) and catalog sales were $250.4 million. Operating cash flow fell to $2.4 million from $21.7 million, and cash used in investing activities reached a record $85.8 million, mainly for new and remodeled stores and the Memphis distribution center. Inventory rose to $121.6 million from $87.9 million, and management disclosed that a portion of this inventory exceeds current requirements, with a reduction program underway. Financing actions included a $40.0 million 7.2% Senior Notes issuance in August 1995 and, after year-end, a $40.0 million 5.25% convertible subordinated notes offering in April 1996 with a conversion price of $26.10 per share. The company has never paid a cash dividend, and its bank agreement and Senior Notes restrict dividends. The filing describes the company's stock as quoted on the NASDAQ National Market System under the symbol WSGC.
Apr 26, 1996
1995
Williams-Sonoma Annual Report, Year Ended Jan 29, 1995
Williams-Sonoma, Inc. reported net sales of $528.5 million for the fiscal year ended January 29, 1995 (Fiscal 1994), up 28.9% from $410.1 million in Fiscal 1993. Net earnings rose to $19.6 million, or $.75 per share (primary and fully diluted), compared with $11.2 million, or $.44 per share, a year earlier. Catalog sales grew 55.0% to $215.5 million, while retail sales increased 17.9% to $307.3 million, with comparable store sales up 16.5%. The company operated 214 retail stores in 26 states and the District of Columbia, plus five mail order catalogs, and sold its California Closet Company subsidiary in August 1994. Profitability improved as cost of goods sold and occupancy fell to 59.9% of sales from 62.3% in Fiscal 1993, though selling, general and administrative expense rose to 33.5% of sales. Total assets grew to $217.9 million and shareholders' equity to $118.2 million. Cash rose to $17.5 million, and inventories increased to $87.9 million. Cash flow from operations was $20.1 million, down from $27.5 million, reflecting higher inventory and prepaid catalog costs. Capital expenditures were $30.1 million, and the company took on a $7 million mortgage on its new headquarters building. The company has never paid a cash dividend and intends to retain earnings to finance growth. Its line of credit provides $45 million of available credit and expires July 1, 1996. Management plans 50 new or expanded large-format stores in Fiscal 1995 and expects to mail fewer catalogs due to higher postal rates and paper costs. The company's common stock trades on the NASDAQ National Market System under the symbol WSGC, with a closing price of $19.125 on April 20, 1995.
Apr 28, 1995