01—Abstract
Summary
Summary of the 10-K filed April 4, 2013. Cited figures are marked; the original filing is the authoritative source.
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 $4,042,870,000a from $3,720,895,000 in fiscal 2011.
Comparable brand revenues increased 6.1%, and diluted earnings per share rose to $2.54b 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 millionc 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,d 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.
02—Key points
Key Highlights
- Net revenues rose 8.7% to $4,042,870,000, surpassing four billion dollars for the first time, including the impact of a 53rd week.
- Comparable brand revenues increased 6.1%, and comparable store sales increased 2.3%.
- E-commerce net revenues grew 17.4% to $1,656,197,000, and direct-to-customer revenues reached 46.2% of net revenues.
- Diluted earnings per share increased to $2.54 from $2.22, and net earnings reached $256,730,000.
- Gross margin was 39.4% of net revenues, and operating income was $409,163,000 with an operating margin of 10.1%.
- The company held $424,555,000 in cash with no borrowings under its $300,000,000 revolving credit facility.
- In March 2013 the Board authorized a $750,000,000 three-year repurchase program and a 41% quarterly dividend increase to $0.31 per share.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2013, Williams-Sonoma kept $0.06.
- Revenue$4.04B100.0%
- Cost of revenue−$2.45B60.6%
- Gross profit$1.59B39.4%
- Operating costs−$1.18B29.3%
- Operating income$409.2M10.1%
- Interest, other & tax−$152.4M3.8%
- Net income$256.7M6.4%
Where FY2013 revenue went
$4.04B- Cost of revenue: $2.45B, 61% of revenue
- SG&A: $1.18B, 29% of revenue
- Net income: $256.7M, 6.4% of revenue
- Interest, other & tax: $152.4M, 3.8% of revenue
Kept 6.4% as net incomeNet income $256.7M · 6.4%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2013filed April 4, 2013Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $4.04B$3.72B | +8.7% |
| Gross Profit | $1.59B$1.46B | +9.1% |
| SG&A Expenses | $1.18B$1.08B | +9.8% |
| Operating Income | $409.16M$381.73M | +7.2% |
| Net Income | $256.73M$236.93M | +8.4% |
| EPS (Basic) | $2.59$2.27 | +14.1% |
| EPS (Diluted) | $2.54$2.22 | +14.4% |
| Shares Outstanding (Basic) | 99.27M104.35M | −4.9% |
| Shares Outstanding (Diluted) | 101.05M106.58M | −5.2% |
05—Questions
Frequently Asked Questions
How did Williams-Sonoma perform in fiscal 2012?
Net revenues increased 8.7% to $4,042,870,000, comparable brand revenues rose 6.1%, and diluted EPS increased to $2.54 from $2.22. The fiscal year included 53 weeks, and the filing states the extra week contributed approximately $70 million of net revenues and $0.07 of diluted EPS.
Which channel drove growth?
The direct-to-customer segment grew 14.5% to $1,869,386,000, led by e-commerce, which rose 17.4% to $1,656,197,000. Retail net revenues increased 4.1% to $2,173,484,000, with comparable store sales up 2.3%.
What are the company's capital return plans?
In fiscal 2012 the company returned $242,927,000 through repurchases and dividends. In March 2013 it authorized a new $750,000,000 stock repurchase program to be executed over three years and raised its quarterly dividend 41%, from $0.22 to $0.31 per share.
How is the company's liquidity position?
The company held $424,555,000 in cash and cash equivalents as of February 3, 2013, with no amounts outstanding under its $300,000,000 unsecured revolving credit facility. Management believes cash on hand and available credit will provide adequate liquidity over the next 12 months.
What are the main risks and growth plans?
Risks include sensitivity to consumer spending, dependence on foreign vendors (about 61% of fiscal 2012 merchandise purchases were foreign-sourced), and the success of new brands and global expansion. Planned growth includes entering Australia in fiscal 2013 with four company-owned stores and an e-commerce site, and the franchise operation in the Middle East, which had 23 stores at fiscal year-end.
06—Continue